Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an choice to the promoters to development the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Delhi which are in action in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We come going on with the child support for our clients best in class services appropriately that they are not terrified with any non assent during the initial stages of there growth. In Delhi we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends like word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies committed in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there reveal not subside with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may grow less with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dispensation which instead of distributing its surplus/profit in the middle of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any maintenance in the form of dividend or gain 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 well 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 below 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 below the definition of Public Company it can also mount up members and accept membership spread 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 with 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 upholding of documents and keeping in view whatever 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.