Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an option to the promoters to increase the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Tupudana which are vigorous in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services in view of that that they are not scared with any non assent during the initial stages of there growth. In Tupudana we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies energetic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publicize not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may stop with words subsequent to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which then again of distributing its surplus/profit among its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child maintenance 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 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 below Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of additional 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 accumulate members and accept membership evolve from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration in the manner 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 below Section 8, and the Ministry of Corporate Affairs can after due announcement of documents and keeping in view anything 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.