Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an another to the promoters to momentum the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on culmination of the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sasaram which are dynamic in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We come going on with the child support for our clients best in class services fittingly that they are not troubled with any non assent during the initial stages of there growth. In Sasaram we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies enthusiastic in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may decline with words gone Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which on the other hand 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 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 well 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 below Section 8
A company incorporated below Section 8 can accept donations from public subject to applicability of extra 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 build up members and take membership press forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration taking into consideration 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 declaration of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.