Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an choice to the promoters to onslaught the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Raja Bazaar which are effective in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services thus that they are not frightened with any non consent during the initial stages of there growth. In Raja Bazaar we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends gone word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies working in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there pronounce not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may fall with words once Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An executive which then again of distributing its surplus/profit in the midst 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 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 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 under Section 8 can take donations from public subject to applicability of other rules and regulations and official recognition 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 move ahead from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration afterward 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 pronouncement 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.