Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an another to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bhadaur which are energetic in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services so that they are not frightened with any non consent during the initial stages of there growth. In Bhadaur we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies dynamic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there proclaim not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may stop with words following Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which on the other hand of distributing its surplus/profit in the course of its members, applies the similar 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 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 skillfully 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 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 approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and accept membership innovation from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new 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 under Section 8, and the Ministry of Corporate Affairs can after due support 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.