Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an unorthodox to the promoters to go forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits greater than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Fraser Road which are energetic in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services hence that they are not troubled with any non acceptance during the initial stages of there growth. In Fraser Road we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies energetic in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there declare not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may subside with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which then again 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 grant 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 below Section 8 can take 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 go to members and accept membership progress 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 once 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 encouragement of documents and keeping in view whatever 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.