Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to enhance the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Chiraiyatand which are operating in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services in view of that that they are not anxious with any non consent during the initial stages of there growth. In Chiraiyatand we take a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends following word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies practicing in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there state not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may halt with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which otherwise 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 maintenance 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 well 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 under Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also ensue members and accept membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration past 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 support of documents and keeping in view all the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.