Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an choice to the promoters to go ahead the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Pakur which are keen in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services suitably that they are not frightened with any non assent during the initial stages of there growth. In Pakur we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies involved in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may stop with words next Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which then again of distributing its surplus/profit accompanied by 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 profit 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 under 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 below Section 8 can take donations from public subject to applicability of supplementary 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 amass members and accept membership onslaught 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 later 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 declaration of documents and keeping in view all 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.