Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an substitute to the promoters to spread the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Lakhisarai which are practicing in various fields for the welfare of public at large. Our fascination service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services therefore that they are not fearful with any non agreement during the initial stages of there growth. In Lakhisarai we accept a maximum of 10 days get older to incorporate a Section 8 Company.
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WHAT IS SECTION 8 LICENSE?
Generally publicize of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies lively in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there state not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may subside with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which otherwise 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 keep in the form of dividend or gain 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 under 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 below Section 8 can accept donations from public subject to applicability of supplementary 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 amass members and accept membership increase 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 bearing in mind 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 support of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.