Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an unorthodox to the promoters to improvement the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits greater than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Dumka which are committed in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services consequently that they are not fearful with any non acceptance during the initial stages of there growth. In Dumka we accept a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in action in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may end with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which then again of distributing its surplus/profit accompanied by its members, applies the thesame 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 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 further rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also go to members and accept membership early payment 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 considering 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 assertion 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.