Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an different to the promoters to innovation the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on peak of the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Gaya which are on the go in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services therefore that they are not anxious with any non consent during the initial stages of there growth. In Gaya we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends following word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of life in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there herald not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may halt with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which then again of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any grant in the form of dividend or profit 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 below 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 accept donations from public subject to applicability of supplementary rules and regulations and endorsement 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 money stirring 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 like 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 avowal of documents and keeping in view anything 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.