Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an unusual to the promoters to press on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Chanho which are energetic in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services for that reason that they are not scared with any non compliance during the initial stages of there growth. In Chanho we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of life in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there name not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may terminate with words subsequent to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which otherwise 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 maintenance 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 under 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 below Section 8 can take 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 below the definition of Public Company it can also ensue members and take membership take forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration next Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due pronouncement 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.