Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an another to the promoters to onslaught the idea of Social cause on 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 Jamtara which are working in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services correspondingly that they are not terrified with any non acceptance during the initial stages of there growth. In Jamtara we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally make known of a company ends taking into consideration word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies effective in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there herald not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may fade away with words once Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which instead of distributing its surplus/profit among its members, applies the thesame 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 competently 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 under 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 extra rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and accept membership go ahead from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration next Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due avowal of documents and keeping in view everything 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.