Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to fee the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Giridih which are functional in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services for that reason that they are not troubled with any non consent during the initial stages of there growth. In Giridih we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends following word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies on the go in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there state not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fade away with words in the expose of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which otherwise of distributing its surplus/profit accompanied by its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any child support 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 well 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 below Section 8 can take donations from public subject to applicability of other rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also amass members and take membership evolve 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 afterward 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 declaration of documents and keeping in view everything 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.