Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an choice to the promoters to fee the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Samastipur which are committed in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services appropriately that they are not fearful with any non compliance during the initial stages of there growth. In Samastipur we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functional in the social welfare and publicity 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 post may grow less with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which otherwise of distributing its surplus/profit along with its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any money in the form of dividend or profit 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 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 under Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of other rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also build up members and take membership development from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration subsequently 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 pronouncement of documents and keeping in view everything 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.