Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an unconventional to the promoters to encroachment the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Ranchi which are full of life in various fields for the welfare of public at large. Our fascination service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services for that reason that they are not terrified with any non compliance during the initial stages of there growth. In Ranchi we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies vigorous in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may end with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which on the other hand of distributing its surplus/profit accompanied by its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 below Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of further 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 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 confirmation of documents and keeping in view whatever 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.