Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to improvement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Ranchi Court which are operational in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services suitably that they are not terrified with any non compliance during the initial stages of there growth. In Ranchi Court we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies vigorous in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there say not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may stop with words in the same way as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which then again of distributing its surplus/profit in the course of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any allowance in the form of dividend or profit 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 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 under Section 8
DONATION:
A company incorporated below Section 8 can take 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 add members and take membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration in the aerate of 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 assertion of documents and keeping in view everything 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.