Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an complementary to the promoters to early payment the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Patna City 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 meet the expense of our clients best in class services hence that they are not fearful with any non compliance during the initial stages of there growth. In Patna City we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends taking into account word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies committed in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may halt with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which instead of distributing its surplus/profit in the midst of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any allowance 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 with ease 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 under Section 8 can take donations from public subject to applicability of supplementary rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also build up members and accept membership enhancement 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 once Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due statement 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.