Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an substitute to the promoters to forward movement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Pitwas which are effective in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services thus that they are not troubled with any non acceptance during the initial stages of there growth. In Pitwas we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends in imitation of word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies involved in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may decline with words gone Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which then again of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any allowance 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 well 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 supplementary rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also accumulate members and accept membership loan from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration considering Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under 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 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.