Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an option to the promoters to move on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Palamu which are operating in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services so that they are not anxious with any non submission during the initial stages of there growth. In Palamu we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies vigorous in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there declare not subside with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may stop with words next Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which on the other hand of distributing its surplus/profit in the midst of 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 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 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 accept donations from public subject to applicability of further rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also grow members and take membership expansion from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration taking into account 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 upholding of documents and keeping in view anything the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.