Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an unusual to the promoters to forward movement the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bokaro which are operational in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services for that reason that they are not fearful with any non acceptance during the initial stages of there growth. In Bokaro we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends later word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies involved in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there say not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may fade away with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which otherwise of distributing its surplus/profit accompanied by its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child support in the form of dividend or profit 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 capably 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 take donations from public subject to applicability of extra rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and take membership progress 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 in imitation of 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 statement of documents and keeping in view everything 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.