Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an marginal to the promoters to proceed the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Belchi which are full of zip in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services so that they are not fearful with any non submission during the initial stages of there growth. In Belchi we accept a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends bearing in mind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies practicing in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there broadcast not subside with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may subside with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which then again of distributing its surplus/profit among 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 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 with ease 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 additional rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also add members and accept membership onslaught 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 with 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 assertion 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.