Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an option to the promoters to money going on front the idea of Social cause on 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 Sri Krishna Puri which are practicing in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services suitably that they are not troubled with any non compliance during the initial stages of there growth. In Sri Krishna Puri we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functional in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there publish not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may end with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which instead of distributing its surplus/profit along with its members, applies the similar 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 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 without difficulty 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 take donations from public subject to applicability of supplementary rules and regulations and endorsement 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 move forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration subsequent 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 under Section 8, and the Ministry of Corporate Affairs can after due assertion 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.