Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to fee the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Ram Krishna Nagar which are in action in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services thus that they are not scared with any non compliance during the initial stages of there growth. In Ram Krishna Nagar we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends with word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in action in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there state not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may fade away with words when Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which instead of distributing its surplus/profit along with its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any allowance in the form of dividend or gain 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 without difficulty 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 below Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of new rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also mount up members and take membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration next 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 verification of documents and keeping in view everything 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.