Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an complementary to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khirimore which are enthusiastic in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services in view of that that they are not frightened with any non submission during the initial stages of there growth. In Khirimore we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends bearing in mind word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies energetic in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there publicize not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may decrease with words in the declare of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which otherwise of distributing its surplus/profit along with its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money 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 below 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 accept donations from public subject to applicability of other rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also be credited with members and accept membership progress 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 afterward Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due encouragement of documents and keeping in view all 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.