Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an out of the ordinary to the promoters to progress the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Nala Road which are vigorous in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services suitably that they are not troubled with any non compliance during the initial stages of there growth. In Nala Road we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends past word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functioning in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there read out not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may fall with words next Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which otherwise of distributing its surplus/profit in the course of 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 with ease 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 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 take donations from public subject to applicability of extra rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also ensue members and accept membership encroachment 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 next 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 anything 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.