Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an marginal to the promoters to loan 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 Budhha Colony which are vigorous in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We come going on with the child support for our clients best in class services as a result that they are not frightened with any non agreement during the initial stages of there growth. In Budhha Colony we take a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends with word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in force in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fall with words taking into account Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which then again of distributing its surplus/profit among 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 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 below 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 further rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also accumulate members and accept membership improve from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra 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 below Section 8, and the Ministry of Corporate Affairs can after due upholding of documents and keeping in view everything 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.