Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an other to the promoters to expansion the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Fatuha which are lively in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services as a result that they are not fearful with any non acceptance during the initial stages of there growth. In Fatuha we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends afterward 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 promotion of Arts, Science, Commerce, Education, Literature etc to have there publicize not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may grow less with words like Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which otherwise of distributing its surplus/profit accompanied by its members, applies the same 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 without difficulty 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 below 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 supplementary rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and accept membership enhance from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other 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 below Section 8, and the Ministry of Corporate Affairs can after due announcement of documents and keeping in view all the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.