Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an complementary to the promoters to develop the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Arah which are keen in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services consequently that they are not anxious with any non agreement during the initial stages of there growth. In Arah we take a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally make known of a company ends behind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies enthusiastic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there herald not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may grow less with words like Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which then again of distributing its surplus/profit in the midst of its members, applies the thesame 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 well 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 accept donations from public subject to applicability of other 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 mount up members and accept membership spread 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 as soon as Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due declaration of documents and keeping in view anything 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.