Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an unorthodox to the promoters to further the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Athmalgola which are committed in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services thus that they are not troubled with any non assent during the initial stages of there growth. In Athmalgola we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends when word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies committed in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there make known not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may fade away with words following Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which on the other hand of distributing its surplus/profit in the midst of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 skillfully 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 take donations from public subject to applicability of supplementary rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also ensue members and take membership proceed 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 in the same way as 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 verification of documents and keeping in view whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.