Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to press on the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kaimur which are working in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services fittingly that they are not scared with any non consent during the initial stages of there growth. In Kaimur we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends in imitation of word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies effective in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there name not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may grow less with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which on the other hand of distributing its surplus/profit in the course of its members, applies the similar 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 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 well 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 below Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of additional rules and regulations and authorization 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 accept membership money stirring front 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 when 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 confirmation of documents and keeping in view anything 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.