Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an option to the promoters to increase the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Lalpur which are vigorous in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We find the grant for our clients best in class services appropriately that they are not terrified with any non acceptance during the initial stages of there growth. In Lalpur we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends similar to word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies operating in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may halt with words in the atmosphere of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead of distributing its surplus/profit among its members, applies the thesame 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 skillfully 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 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 further rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also amass members and take membership move ahead from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration once Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below 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 whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.