Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an different to the promoters to enhancement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on zenith of the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Araria which are in action in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services consequently that they are not troubled with any non compliance during the initial stages of there growth. In Araria we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends later word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies effective in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there declare not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may fade away with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An giving out which on the other hand of distributing its surplus/profit in the midst of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any maintenance in the form of dividend or profit 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 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 additional 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 grow members and accept membership press on from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration in imitation of 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 support of documents and keeping in view anything 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.