Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an option to the promoters to progress the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Digha which are in action in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services suitably that they are not fearful with any non assent during the initial stages of there growth. In Digha we accept a maximum of 10 days period to incorporate a Section 8 Company.
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WHAT IS SECTION 8 LICENSE?
Generally post of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies energetic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may halt with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which on the other hand of distributing its surplus/profit in the midst of its members, applies the similar 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 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 under 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 endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also ensue members and accept membership increase 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 when 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 under Section 8 can convert itself into Public or private Company.