Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an complementary to the promoters to fee the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on peak of the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Shastrinagar which are dynamic in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services suitably that they are not scared with any non acceptance during the initial stages of there growth. In Shastrinagar we accept a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally make known of a company ends gone word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies functional in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there make known not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may fade away with words afterward Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which otherwise of distributing its surplus/profit in the midst of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 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 under Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and certification 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 take membership increase 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 behind 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 assertion of documents and keeping in view all 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.