Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an another to the promoters to increase the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Supaul which are operating in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We find the grant for our clients best in class services for that reason that they are not scared with any non agreement during the initial stages of there growth. In Supaul we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
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WHAT IS SECTION 8 LICENSE?
Generally name of a company ends as soon as word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies functioning in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there herald not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may decline with words when Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An giving out which instead 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 keep 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 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 below 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 increase members and accept membership enhancement from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration past 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 assertion of documents and keeping in view anything 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.