Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an unconventional to the promoters to take forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on culmination of the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Begusarai 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 have the funds for our clients best in class services suitably that they are not scared with any non submission during the initial stages of there growth. In Begusarai we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends bearing in mind word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies on the go in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there make known not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may halt with words when Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which otherwise of distributing its surplus/profit in the course of its members, applies the thesame 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 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 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 accept donations from public subject to applicability of further rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also build up members and accept membership encroachment 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 gone Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due confirmation of documents and keeping in view anything 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.