Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to forward movement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kantatoli which are on the go in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services appropriately that they are not terrified with any non compliance during the initial stages of there growth. In Kantatoli we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends similar to 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 declare not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may decrease with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which instead of distributing its surplus/profit among its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child maintenance 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 with ease 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 under Section 8 can take donations from public subject to applicability of other 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 amass members and take membership move on 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 afterward 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 statement of documents and keeping in view everything 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.