Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an substitute to the promoters to press on the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Rania Talab which are functional in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services so that they are not scared with any non compliance during the initial stages of there growth. In Rania Talab we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends subsequent to word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies effective in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there declare not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may grow less with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which instead of distributing its surplus/profit along with its members, applies the thesame 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 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 well as private company.
- A minimum of 2 members are required if the company is incorporated under the definition of private company and a minimum of 7 members shall be required if the company is incorporated below the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of additional 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 amass 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 considering 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 upholding of documents and keeping in view anything the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.