Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an option to the promoters to build up the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Beur Patna which are operating 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 suitably that they are not fearful with any non assent during the initial stages of there growth. In Beur Patna we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies energetic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there reveal not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may end with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead of distributing its surplus/profit accompanied by 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 profit 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 below 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 further rules and regulations and official recognition 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 take membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration in imitation of 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 confirmation of documents and keeping in view all 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.