Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an unconventional to the promoters to press forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Exhibition Road which are operational in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services suitably that they are not fearful with any non consent during the initial stages of there growth. In Exhibition Road we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends taking into consideration word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies working in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may subside with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which otherwise of distributing its surplus/profit along with 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 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 below 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 accept 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 under the definition of Public Company it can also accumulate members and take membership encroachment 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 later Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due assertion of documents and keeping in view anything 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.