Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an marginal to the promoters to develop the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on peak of the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Old Commissioner Compound which are functional in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services thus that they are not scared with any non submission during the initial stages of there growth. In Old Commissioner Compound we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in action in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publicize not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may end with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which on the other hand of distributing its surplus/profit in the course of its members, applies the thesame 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 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 with ease 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 below Section 8 can take donations from public subject to applicability of new 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 take membership improve 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 subsequently 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 avowal of documents and keeping in view anything 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.