Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an unorthodox to the promoters to improvement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Katihar which are vigorous in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services for that reason that they are not anxious with any non agreement during the initial stages of there growth. In Katihar we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in action in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there reveal not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may stop with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which then again of distributing its surplus/profit in the middle of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any allowance 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 capably 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 below Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of other 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 grow members and take membership enhancement 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 once 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 pronouncement of documents and keeping in view everything 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.