Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an marginal to the promoters to fee the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Mahendru which are functional in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services in view of that that they are not anxious with any non acceptance during the initial stages of there growth. In Mahendru we accept a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends past word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies keen in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there publish not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may fall with words afterward Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which on the other hand of distributing its surplus/profit accompanied by its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money in the form of dividend or profit sharing. Company registered below 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 well 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 under the definition of public company.
- An OPC (One Person Company) cannot apply for License under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of other rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and accept membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration in the same way as Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due pronouncement of documents and keeping in view everything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.