Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an substitute to the promoters to further the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Pavapuri which are working in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services appropriately that they are not anxious with any non consent during the initial stages of there growth. In Pavapuri we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends past word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies on the go in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may halt with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which on the other hand 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 grant in the form of dividend or profit 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 competently 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 below Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of additional rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also amass members and accept membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration in imitation of 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 encouragement of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.