Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an choice to the promoters to enhance the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Shahpur which are committed in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services suitably that they are not fearful with any non compliance during the initial stages of there growth. In Shahpur we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies operational in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there pronounce not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may terminate with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which then again of distributing its surplus/profit in the middle of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any money 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 skillfully 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 under Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and authorization 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 enhancement 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 in imitation of 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 announcement of documents and keeping in view everything 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.