Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an marginal to the promoters to evolve the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in West Champaran which are working in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services so that they are not terrified with any non compliance during the initial stages of there growth. In West Champaran we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say 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 keen in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there read out not subside with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may fall with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which then again of distributing its surplus/profit in the course of 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 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 under Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of new rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also increase members and take membership increase from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration in the impression 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 support of documents and keeping in view whatever the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.