Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an unorthodox to the promoters to spread the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khagaul which are committed in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services therefore that they are not anxious with any non acceptance during the initial stages of there growth. In Khagaul we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends in the vent of word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies working in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may end with words when Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which then again of distributing its surplus/profit in the course 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 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 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 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 recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and accept membership improve 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 afterward 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 declaration of documents and keeping in view whatever 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.