Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an different to the promoters to further the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kadam Kuan which are in force 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 thus that they are not terrified with any non assent during the initial stages of there growth. In Kadam Kuan we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say 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 effective in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publish not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may decrease with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which otherwise of distributing its surplus/profit in the midst of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child support 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 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 below 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 new rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also mount up members and take membership increase 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 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 below Section 8, and the Ministry of Corporate Affairs can after due avowal of documents and keeping in view whatever the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.