Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an choice to the promoters to improvement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bahadurpur which are committed in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services fittingly that they are not troubled with any non consent during the initial stages of there growth. In Bahadurpur we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare 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 practicing in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there name not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may halt with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which on the other hand of distributing its surplus/profit in the midst of its members, applies the same 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 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 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 below 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 new rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also go to members and take membership build up 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 like 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 pronouncement of documents and keeping in view anything 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.