Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an unconventional to the promoters to enhancement the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sultanganj which are working in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services for that reason that they are not terrified with any non compliance during the initial stages of there growth. In Sultanganj we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends once 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 herald not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may subside with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which instead of distributing its surplus/profit in the midst of 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 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 with ease 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 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 amass 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 other 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 under Section 8, and the Ministry of Corporate Affairs can after due confirmation of documents and keeping in view all 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.