Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an complementary to the promoters to improve the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in East Champaran which are effective in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services hence that they are not frightened with any non agreement during the initial stages of there growth. In East Champaran we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends in the same way as word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies dynamic in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may halt 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 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 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 competently 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of further rules and regulations and official recognition 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 take membership improvement 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 as soon as 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 confirmation 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.