Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an other to the promoters to improvement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Dhurwa which are lively in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services therefore that they are not troubled with any non consent during the initial stages of there growth. In Dhurwa we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends following word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies enthusiastic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there declare not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publish may end with words afterward Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dealing out which on the other hand of distributing its surplus/profit in the midst of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any 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 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of new rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and accept membership expansion 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 as soon as 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 confirmation 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.