Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an option to the promoters to forward movement the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Lapung which are working in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services fittingly that they are not frightened with any non acceptance during the initial stages of there growth. In Lapung we take a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies practicing in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there herald not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may end with words subsequently Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which on the other hand of distributing its surplus/profit accompanied by its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 capably 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 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 accumulate members and take membership encroachment 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 past 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 assertion 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.