Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an substitute to the promoters to encroachment the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on height of the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Agamkuan which are full of life in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services as a result that they are not scared with any non submission during the initial stages of there growth. In Agamkuan we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends afterward 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 marketing of Arts, Science, Commerce, Education, Literature etc to have there proclaim not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may fall with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An paperwork which on the other hand of distributing its surplus/profit in the middle of its members, applies the same 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 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 extra rules and regulations and official approval 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 go 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 following 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 announcement 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.