Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an different to the promoters to go ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Seraikela Kharsawan which are functioning in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We come up with the grant for our clients best in class services for that reason that they are not fearful with any non compliance during the initial stages of there growth. In Seraikela Kharsawan we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends later than 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 marketing of Arts, Science, Commerce, Education, Literature etc to have there read out not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may decline with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which otherwise of distributing its surplus/profit accompanied by its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 skillfully 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 below Section 8 can accept donations from public subject to applicability of other 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 increase 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 new NGO can apply for 12A and 80G registration following 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 declaration of documents and keeping in view whatever the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.