Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an choice to the promoters to money up front the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kolkata which are involved in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services appropriately that they are not anxious with any non compliance during the initial stages of there growth. In Kolkata we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies enthusiastic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there say not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may decrease with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any grant in the form of dividend or gain sharing. Company registered under Section 8 is a Non Profit Organization
Is Section 8 company Public company or Private Company?
Section 8 Company can be incorporated both as a public as capably as private company.
- A minimum of 2 members are required if the company is incorporated below the definition of private company and a minimum of 7 members shall be required if the company is incorporated below the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of extra rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also ensue members and take membership move ahead from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration past Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due announcement of documents and keeping in view anything the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.