Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an different to the promoters to move ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Rohtas which are lively in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services hence that they are not frightened with any non acceptance during the initial stages of there growth. In Rohtas we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies enthusiastic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may decline with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out 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 child maintenance 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 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 below Section 8 can take donations from public subject to applicability of other rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and take membership go ahead 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 like 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 announcement of documents and keeping in view anything the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.