Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an other to the promoters to spread the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Biharsharif which are full of zip in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services so that they are not terrified with any non compliance during the initial stages of there growth. In Biharsharif we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends subsequent to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in action in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there reveal not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may terminate with words bearing in mind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which then again 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 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 with ease as private company.
- A minimum of 2 members are required if the company is incorporated under 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 take donations from public subject to applicability of supplementary 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 add members and accept membership spread 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 next 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 statement 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.