Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an unusual to the promoters to loan the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Gardanibag which are dynamic in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services for that reason that they are not frightened with any non submission during the initial stages of there growth. In Gardanibag we accept a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in action in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there state not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there state may grow less with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead 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 maintenance in the form of dividend or gain 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 with ease 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 below 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 other rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also add members and take membership go forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration subsequent to 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 pronouncement of documents and keeping in view whatever 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.