Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an substitute to the promoters to enhancement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Buxar 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 offer our clients best in class services appropriately that they are not terrified with any non compliance during the initial stages of there growth. In Buxar we accept a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends in imitation of word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies on the go in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there broadcast not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may grow less with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which then again of distributing its surplus/profit in the midst of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 below 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 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 grow members and accept membership encroachment 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 taking into account 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 statement of documents and keeping in view all 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.