Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an complementary to the promoters to encroachment the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Aurangabad which are enthusiastic in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services in view of that that they are not scared with any non submission during the initial stages of there growth. In Aurangabad we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends like word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies working in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there herald not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may grow less with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An meting out which otherwise of distributing its surplus/profit along with its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any child maintenance 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 capably as private company.
- A minimum of 2 members are required if the company is incorporated below 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 take donations from public subject to applicability of extra rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also amass members and take membership press forward 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 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 below Section 8, and the Ministry of Corporate Affairs can after due verification of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.