Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an choice to the promoters to onslaught the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Nalanda which are functioning in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services for that reason that they are not terrified with any non acceptance during the initial stages of there growth. In Nalanda we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends similar to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies involved in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there pronounce not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may terminate with words taking into account Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which then again of distributing its surplus/profit among 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 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 below the definition of public company.
- An OPC (One Person Company) cannot apply for License under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of additional rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and take membership development from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration behind 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 upholding 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.