Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an substitute to the promoters to improve the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Akilpur which are committed in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services thus that they are not terrified with any non acceptance during the initial stages of there growth. In Akilpur we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends behind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in action in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there read out not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may decrease with words following Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which otherwise of distributing its surplus/profit among its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 without difficulty 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 below Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of further 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 amass members and accept 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 past 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 announcement of documents and keeping in view whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.