Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an substitute to the promoters to move ahead the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on culmination of the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Mithapur which are in force in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We find the maintenance for our clients best in class services hence that they are not terrified with any non submission during the initial stages of there growth. In Mithapur we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies functional in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there herald not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may decrease with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which on the other hand 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 child maintenance 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 capably 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 under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of new 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 mount up members and accept membership onslaught 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 following 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 all 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.