Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an choice to the promoters to fee the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Rajeev Nagar which are practicing in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services so that they are not terrified with any non assent during the initial stages of there growth. In Rajeev Nagar we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends behind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in force in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there make known not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may decrease with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead of distributing its surplus/profit in the midst of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child support in the form of dividend or gain 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 without difficulty 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 extra rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and accept membership increase 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 similar to Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due avowal of documents and keeping in view all 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.