Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an substitute to the promoters to take forward the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bettiah 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 present our clients best in class services therefore that they are not anxious with any non consent during the initial stages of there growth. In Bettiah we take a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies operating in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there read out not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may fall with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which on the other hand of distributing its surplus/profit in the middle 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 take donations from public subject to applicability of extra rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also amass members and accept membership press forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration similar to 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 encouragement 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.