Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an complementary to the promoters to build up the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Burmi which are enthusiastic in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services for that reason that they are not troubled with any non agreement during the initial stages of there growth. In Burmi we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends past word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of life in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there publicize not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may stop with words behind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which on the other hand of distributing its surplus/profit in the middle of its members, applies the similar 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 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 below the definition of public company.
- An OPC (One Person Company) cannot apply for License under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of additional rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also accumulate members and take membership evolve from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration once 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 upholding 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.