Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an marginal to the promoters to increase the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khajekala 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 provide our clients best in class services therefore that they are not terrified with any non assent during the initial stages of there growth. In Khajekala we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends later word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functional in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may subside with words taking into account Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which instead of distributing its surplus/profit in the course 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 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 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of supplementary rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also mount up members and accept membership move 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 following 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 support of documents and keeping in view anything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.