Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an marginal to the promoters to increase the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on height of the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bakhtiyarpur which are practicing in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services for that reason that they are not scared with any non consent during the initial stages of there growth. In Bakhtiyarpur we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally make known of a company ends subsequent to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies operating in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publish not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may stop with words subsequently Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which otherwise 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 maintenance 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 competently 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 under Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of additional 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 build up members and accept membership progress 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 behind 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 everything 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.