Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an other to the promoters to spread the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Ghoswari which are full of life in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services therefore that they are not fearful with any non consent during the initial stages of there growth. In Ghoswari we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies on the go in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there state not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may end with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which on the other hand of distributing its surplus/profit in the midst of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child support 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 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 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 take donations from public subject to applicability of extra rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also go to members and take membership press on 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 past 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 verification of documents and keeping in view anything 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.