Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an unusual to the promoters to further the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Lower Bazaar which are keen in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services fittingly that they are not frightened with any non compliance during the initial stages of there growth. In Lower Bazaar we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publicize of a company ends like 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 marketing 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 read out may terminate with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which otherwise of distributing its surplus/profit among 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 gain sharing. Company registered under 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 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 under Section 8 can take donations from public subject to applicability of new 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 amass members and accept membership spread from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration with 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 whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.