Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an option to the promoters to proceed the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on height of the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Rajendra Nagar which are lively in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services correspondingly that they are not scared with any non assent during the initial stages of there growth. In Rajendra Nagar we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends in the flavor of word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies energetic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there state not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may halt with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which otherwise of distributing its surplus/profit along with its members, applies the similar 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 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 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 accept 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 below the definition of Public Company it can also increase members and take membership move ahead 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 with 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 avowal 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.