Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an choice to the promoters to spread the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Madhubani which are full of life in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services in view of that that they are not anxious with any non compliance during the initial stages of there growth. In Madhubani we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends following word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies keen in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there say not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may terminate with words behind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which otherwise of distributing its surplus/profit accompanied by 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 competently 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 supplementary rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also amass members and accept membership increase 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 in the same way as Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due support 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.