Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an unconventional to the promoters to proceed the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Pithoria which are practicing in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services in view of that that they are not scared with any non submission during the initial stages of there growth. In Pithoria we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends in imitation of 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 publish not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may decrease with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An giving out 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 maintenance in the form of dividend or profit 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 with ease 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 take 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 go to members and take 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 considering 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 support 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.