Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an option to the promoters to evolve the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sheikhpura which are operating in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services thus that they are not frightened with any non submission during the initial stages of there growth. In Sheikhpura we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies enthusiastic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publish not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may fall with words afterward Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which instead of distributing its surplus/profit along with its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money 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 skillfully 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 under 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 accept donations from public subject to applicability of supplementary rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also mount up members and accept membership forward movement 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 following 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 verification 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.