Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an another to the promoters to spread 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 Chutia which are working in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We come going on with the grant for our clients best in class services appropriately that they are not fearful with any non compliance during the initial stages of there growth. In Chutia we accept a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license under 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 decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may halt with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which otherwise of distributing its surplus/profit along with its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any maintenance 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 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 take donations from public subject to applicability of supplementary rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also add members and take membership increase from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration gone 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 support of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.