Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an option to the promoters to expand the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Shaksohra which are full of zip in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We come stirring with the maintenance for our clients best in class services fittingly that they are not anxious with any non submission during the initial stages of there growth. In Shaksohra we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends bearing in mind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies working in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may stop with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which otherwise 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 maintenance 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 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 accept donations from public subject to applicability of new 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 build up members and accept membership press on from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration in imitation of 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 pronouncement of documents and keeping in view all 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.