Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an substitute to the promoters to momentum the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Shahjahanpur which are lively in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services suitably that they are not terrified with any non compliance during the initial stages of there growth. In Shahjahanpur we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends similar to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies on the go in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may subside with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which otherwise of distributing its surplus/profit among 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 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 capably 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 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 mount up members and take membership improve 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 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 verification of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.