Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an other to the promoters to build up the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Madhepura which are in action in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services for that reason that they are not fearful with any non consent during the initial stages of there growth. In Madhepura we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publicize of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies committed in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there say not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may fade away with words in the tune of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which then again 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 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 skillfully 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 extra rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also accumulate members and accept membership build up from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration subsequent to 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 assertion of documents and keeping in view all 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.