Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an out of the ordinary to the promoters to move forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in New Delhi which are involved in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services so that they are not troubled with any non compliance during the initial stages of there growth. In New Delhi we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends considering 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 marketing of Arts, Science, Commerce, Education, Literature etc to have there declare not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may end with words in the same way as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which otherwise of distributing its surplus/profit in the midst of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any maintenance 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 competently as private company.
- A minimum of 2 members are required if the company is incorporated under 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 under Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of new rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also go to members and take membership press on 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 like Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due declaration of documents and keeping in view whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.