Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an marginal to the promoters to momentum 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 Dulhin Bazaar which are energetic in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services suitably that they are not fearful with any non acceptance during the initial stages of there growth. In Dulhin Bazaar 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 once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies enthusiastic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publicize not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may decline with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which otherwise of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any grant in the form of dividend or profit sharing. Company registered below 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 competently 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 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 supplementary 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 money happening front 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 later than 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 confirmation 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.