Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an out of the ordinary to the promoters to enhance the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Alamganj which are functional in various fields for the welfare of public at large. Our fascination service includes Name Selection, Memorandum Drafting and Company Registration. We manage to pay for our clients best in class services thus that they are not fearful with any non acceptance during the initial stages of there growth. In Alamganj we accept a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends gone 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 publicity of Arts, Science, Commerce, Education, Literature etc to have there pronounce not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may decrease with words in the appearance of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which otherwise of distributing its surplus/profit among its members, applies the similar 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 capably 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 under 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 accept donations from public subject to applicability of other 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 build up members and take membership early payment from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further 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 support 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.