Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an unorthodox to the promoters to increase the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kokar which are in force in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services as a result that they are not frightened with any non assent during the initial stages of there growth. In Kokar we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies operational in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there publish not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there name may fall with words in the way of being of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which instead of distributing its surplus/profit in the course of its members, applies the thesame 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 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 under 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 further rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also grow members and accept membership go forward 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 as soon as 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 upholding of documents and keeping in view all 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.