Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an substitute to the promoters to move ahead the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Deoghar which are practicing in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We find the maintenance for our clients best in class services for that reason that they are not frightened with any non assent during the initial stages of there growth. In Deoghar we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends past word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies lively in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there declare not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may stop with words in the same way as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which instead of distributing its surplus/profit in the middle of its members, applies the thesame 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 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 under Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of supplementary 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 accumulate members and take membership fee 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 subsequently 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 support of documents and keeping in view everything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.