Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an choice to the promoters to expansion the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on peak of the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bhojpur which are lively in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services thus that they are not fearful with any non agreement during the initial stages of there growth. In Bhojpur we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies operational in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there name not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may terminate with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which instead of distributing its surplus/profit in the middle of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 capably 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 accept donations from public subject to applicability of supplementary rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and accept membership expand 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 subsequent 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 announcement of documents and keeping in view all 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.