Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an other to the promoters to encroachment the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Chatra which are keen in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We find the money for our clients best in class services for that reason that they are not anxious with any non consent during the initial stages of there growth. In Chatra we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of life in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there say not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may stop with words afterward Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which instead of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any child support in the form of dividend or gain 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 well 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 extra 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 go to members and accept membership momentum 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 later than Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due declaration of documents and keeping in view all 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.