Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an option to the promoters to develop the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Punaichak which are keen in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We find the grant for our clients best in class services therefore that they are not fearful with any non agreement during the initial stages of there growth. In Punaichak we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publicize of a company ends in the same way as word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies energetic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there proclaim not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may grow less with words behind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which otherwise of distributing its surplus/profit in the course of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money 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 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 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 accept membership improvement from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration similar to Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due confirmation of documents and keeping in view everything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.