Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an different to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Nawada which are committed in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We come stirring with the child support for our clients best in class services suitably that they are not troubled with any non consent during the initial stages of there growth. In Nawada we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends once 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 promotion of Arts, Science, Commerce, Education, Literature etc to have there broadcast not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may fall with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which instead of distributing its surplus/profit in the midst of its members, applies the similar 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 capably as private company.
- A minimum of 2 members are required if the company is incorporated under 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 take donations from public subject to applicability of further 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 increase members and take membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration later 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 avowal of documents and keeping in view anything 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.