Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an marginal to the promoters to development the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Anisabad which are effective in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services for that reason that they are not fearful with any non assent during the initial stages of there growth. In Anisabad we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies committed in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there pronounce not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may grow less with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which instead of distributing its surplus/profit among its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any allowance 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 competently 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 supplementary 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 build up members and take membership take forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other 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 under Section 8, and the Ministry of Corporate Affairs can after due verification of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.