Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an out of the ordinary to the promoters to spread the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Dhanbad which are operating in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services consequently that they are not fearful with any non agreement during the initial stages of there growth. In Dhanbad we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends behind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in force in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there post not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may grow less with words behind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An executive which instead 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 keep in the form of dividend or gain 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 below 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 take donations from public subject to applicability of extra 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 add members and accept membership increase 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 under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due upholding of documents and keeping in view whatever 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.