Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an unconventional to the promoters to progress the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Daniyawan which are working in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services in view of that that they are not fearful with any non consent during the initial stages of there growth. In Daniyawan we accept a maximum of 10 days mature to incorporate a Section 8 Company.
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WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functional in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there broadcast not subside with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may halt with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dealing out which instead of distributing its surplus/profit in the course of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any maintenance 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 well 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 below Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of further 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 be credited with members and take membership go ahead from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration next 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 encouragement 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.