Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an complementary to the promoters to go ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sitamarhi which are working in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services fittingly that they are not frightened with any non acceptance during the initial stages of there growth. In Sitamarhi we accept a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publicize of a company ends taking into account word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies dynamic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may halt with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which otherwise of distributing its surplus/profit along with its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any allowance in the form of dividend or gain 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 below 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 supplementary rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and take membership take forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration once Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due pronouncement of documents and keeping in view whatever 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.