Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an out of the ordinary to the promoters to go ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Mokama which are on the go in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services hence that they are not frightened with any non agreement during the initial stages of there growth. In Mokama we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends similar to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies full of life in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there herald not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there name may decline with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which on the other hand of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 well 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 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 amass members and take membership further 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 next 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 statement 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.