Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an option to the promoters to onslaught 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 Gopalganj which are energetic in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services thus that they are not troubled with any non compliance during the initial stages of there growth. In Gopalganj we take a maximum of 10 days period to incorporate a Section 8 Company.
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WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in action in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may terminate with words gone Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dispensation which on the other hand 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 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 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 additional rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and accept membership build up from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration in the same way as Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due assertion of documents and keeping in view everything 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.