Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an substitute to the promoters to move forward the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Hathidah which are operating in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We find the maintenance for our clients best in class services therefore that they are not scared with any non assent during the initial stages of there growth. In Hathidah we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of zip in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there herald not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may decline with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An executive which on the other hand 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 keep in the form of dividend or gain 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 below Section 8 can take donations from public subject to applicability of further 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 build up members and accept membership improve 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 bearing in mind 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 declaration of documents and keeping in view all 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.