Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an out of the ordinary to the promoters to fee the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits greater than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Boring Road which are working in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services suitably that they are not terrified with any non submission during the initial stages of there growth. In Boring Road we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends in the declare of word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies involved in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may decrease with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An giving out which otherwise of distributing its surplus/profit among its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any allowance 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 below Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of new rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also ensue members and accept membership take forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration once 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 confirmation of documents and keeping in view whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.