Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an marginal to the promoters to move on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Maranchi which are effective in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services appropriately that they are not troubled with any non agreement during the initial stages of there growth. In Maranchi we accept a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends gone word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies lively in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there broadcast not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may subside with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An handing out which instead 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 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 well 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 accept donations from public subject to applicability of additional rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also be credited with members and accept membership fee 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 avowal of documents and keeping in view anything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.