Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an option to the promoters to improve the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Gandhi Maidan which are full of zip in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services suitably that they are not anxious with any non compliance during the initial stages of there growth. In Gandhi Maidan we accept a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies vigorous in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there read out not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may decline with words afterward Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which on the other hand 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 grant 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 with ease 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 under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of additional rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also be credited with members and accept membership money up front from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra 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 below Section 8, and the Ministry of Corporate Affairs can after due encouragement 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.