Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an marginal to the promoters to move ahead the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Danapur which are enthusiastic 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 as a result that they are not troubled with any non consent during the initial stages of there growth. In Danapur we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends gone word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies keen in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there declare not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may end with words taking into account Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which otherwise of distributing its surplus/profit in the course of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 competently 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 under the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of new rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also be credited with members and take membership momentum 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 like 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 avowal 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.