Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an choice to the promoters to encroachment the idea of Social cause on 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 New Jakkanpur which are full of zip in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services in view of that that they are not frightened with any non assent during the initial stages of there growth. In New Jakkanpur we accept a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies working in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there pronounce not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may grow less with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which otherwise of distributing its surplus/profit in the midst of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any grant in the form of dividend or profit sharing. Company registered below 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 below 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 accept donations from public subject to applicability of supplementary rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also ensue members and take membership press on 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 afterward Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due avowal of documents and keeping in view whatever 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.