Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an substitute to the promoters to go forward the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bhabua which are operating in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services therefore that they are not fearful with any non submission during the initial stages of there growth. In Bhabua we take a maximum of 10 days time to incorporate a Section 8 Company.
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WHAT IS SECTION 8 LICENSE?
Generally name of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of zip in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publish not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may stop with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running 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 grant 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 with ease 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of other 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 grow members and take membership encroachment 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 later than 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 announcement of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.