Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an complementary to the promoters to move on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bhagwanganj which are full of life in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We find the child support for our clients best in class services so that they are not fearful with any non acceptance during the initial stages of there growth. In Bhagwanganj we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in action in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may subside with words gone Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which on the other hand of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money 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 below 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 new rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and accept membership loan from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration bearing in mind 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 confirmation of documents and keeping in view all 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.