Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an other to the promoters to progress the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bihar which are in force in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services correspondingly that they are not troubled with any non consent during the initial stages of there growth. In Bihar we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends later than 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 promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may stop with words subsequent to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 skillfully 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 below 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 go to members and accept membership encroachment 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 in imitation of 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 everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.