Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an other to the promoters to proceed the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khusrupur which are practicing in various fields for the welfare of public at large. Our concentration service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services thus that they are not scared with any non compliance during the initial stages of there growth. In Khusrupur we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends following word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in force in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there name not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may grow less 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 along with 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 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 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 accept 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 below the definition of Public Company it can also ensue members and accept membership innovation 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 subsequent to 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 avowal of documents and keeping in view anything 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.