Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an unusual to the promoters to early payment the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Mehandiganj which are involved in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We find the keep for our clients best in class services for that reason that they are not terrified with any non submission during the initial stages of there growth. In Mehandiganj we accept 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 subsequent to word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies on the go in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there pronounce not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may grow less with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing 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 child support 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 without difficulty 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 under Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also build up members and take membership increase from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration afterward 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 avowal of documents and keeping in view anything 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.