Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an different to the promoters to evolve the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bairia which are functioning in various fields for the welfare of public at large. Our concentration service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services for that reason that they are not terrified with any non assent during the initial stages of there growth. In Bairia we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends similar to 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 publish not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fall with words following Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which then again of distributing its surplus/profit accompanied by 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 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of further 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 accumulate members and accept membership go ahead from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration past 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 pronouncement of documents and keeping in view all 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.