Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an different 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 era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Narkopi which are full of zip in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services consequently that they are not terrified with any non assent during the initial stages of there growth. In Narkopi we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies dynamic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may halt with words subsequent to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which instead of distributing its surplus/profit accompanied by 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 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 take donations from public subject to applicability of additional 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 increase members and take membership progress 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 past 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 assertion 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.