Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an other to the promoters to increase the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits on culmination of the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Darul Mallick which are operational in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services as a result that they are not fearful with any non submission during the initial stages of there growth. In Darul Mallick we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends later than 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 promotion of Arts, Science, Commerce, Education, Literature etc to have there reveal not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fall with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which instead of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money in the form of dividend or gain 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 competently 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 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 take donations from public subject to applicability of extra 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 take membership early payment 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 under Section 8, and the Ministry of Corporate Affairs can after due confirmation of documents and keeping in view whatever 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.