Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an out of the ordinary to the promoters to improve the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Naubatpur which are keen in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services therefore that they are not anxious with any non assent during the initial stages of there growth. In Naubatpur we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies functioning in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there read out not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may grow less with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which instead of distributing its surplus/profit along with its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any maintenance 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 under the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of further rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also amass members and accept membership loan 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 as soon as 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 statement of documents and keeping in view everything 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.