Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an out of the ordinary to the promoters to enhance the idea of Social cause upon 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 Rajapur Mainpura which are vigorous in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services in view of that that they are not anxious with any non compliance during the initial stages of there growth. In Rajapur Mainpura we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies vigorous in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there reveal not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may stop with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which instead 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 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 with ease as private company.
- A minimum of 2 members are required if the company is incorporated below 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 under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of additional 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 add members and take membership go ahead 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 following 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 support of documents and keeping in view anything 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.