Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an unorthodox to the promoters to spread the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Ramkrishna Nagar which are in action in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services so that they are not fearful with any non assent during the initial stages of there growth. In Ramkrishna Nagar we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends with word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies operational in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there proclaim not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may fade away with words when Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which otherwise of distributing its surplus/profit in the course of its members, applies the similar 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 without difficulty 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 new 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 mount up members and accept membership proceed 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 like 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 encouragement 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.