Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an substitute to the promoters to take forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits greater than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sachivalaya which are full of life in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services consequently that they are not terrified with any non consent during the initial stages of there growth. In Sachivalaya we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies involved in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there pronounce not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may stop with words next Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An executive which then again of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any child support 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 well 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 below Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of other 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 grow members and take membership money in the works front from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration in imitation of Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below 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.