Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an complementary to the promoters to money stirring front the idea of Social cause on 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 Barh Patna which are energetic in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services appropriately that they are not terrified with any non agreement during the initial stages of there growth. In Barh Patna we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies involved in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publicize not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may end with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which then again 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 allowance 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 competently 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 below 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 accept donations from public subject to applicability of new 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 amass members and accept membership spread 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 next 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 statement of documents and keeping in view whatever the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.