Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an out of the ordinary to the promoters to expand the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Jamal Road which are vigorous in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services suitably that they are not fearful with any non acceptance during the initial stages of there growth. In Jamal Road 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 in the same way as word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies full of zip in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may subside with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An executive which otherwise 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 money in the form of dividend or gain 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 without difficulty 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 below Section 8 can accept donations from public subject to applicability of additional rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and accept membership press on 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 in imitation of 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 declaration of documents and keeping in view whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.