Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an choice to the promoters to move ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Darbhanga which are functioning in various fields for the welfare of public at large. Our concentration service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services therefore that they are not anxious with any non submission during the initial stages of there growth. In Darbhanga we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends taking into consideration word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functional in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there name not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may fade away with words behind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dispensation which otherwise 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 money 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 under 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 take donations from public subject to applicability of new rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also mount up members and take membership press forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration once 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 support of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.