Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an other to the promoters to money happening front the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits over the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Barh which are in action in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We come going on with the child support for our clients best in class services in view of that that they are not frightened with any non assent during the initial stages of there growth. In Barh we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies keen in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there make known not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may end with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which instead of distributing its surplus/profit in the midst of its members, applies the same 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 below 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 below 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 further rules and regulations and authorization 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 develop 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 behind Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due announcement of documents and keeping in view anything 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.