Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an substitute to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Hindpiri which are lively in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services fittingly that they are not anxious with any non agreement during the initial stages of there growth. In Hindpiri we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends as soon as word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies involved in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there proclaim not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may subside with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which then again of distributing its surplus/profit among its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any keep in the form of dividend or profit 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 well 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of new 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 accumulate members and accept membership fee from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration subsequent to Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due declaration 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.