Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an choice to the promoters to go ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Ramgarh which are in action in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We find the allowance for our clients best in class services as a result that they are not scared with any non compliance during the initial stages of there growth. In Ramgarh we accept a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies committed in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there read out not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may terminate with words bearing in mind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which then again of distributing its surplus/profit in the midst of its members, applies the similar 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 competently 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 under Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of additional rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also amass members and take membership spread from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration taking into account 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 announcement of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.