Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an substitute to the promoters to further the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Jehanabad which are committed in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services therefore that they are not anxious with any non acceptance during the initial stages of there growth. In Jehanabad we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publicize 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 operating in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there publicize not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may subside with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which otherwise 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 maintenance 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 without difficulty 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 below Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and accept membership take forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration in the song 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 under Section 8, and the Ministry of Corporate Affairs can after due statement of documents and keeping in view all 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.