Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an complementary to the promoters to enhance the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Gopalpur which are vigorous in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services as a result that they are not scared with any non submission during the initial stages of there growth. In Gopalpur we accept a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally make known of a company ends subsequent to word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies vigorous in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there pronounce 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 similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which then again of distributing its surplus/profit accompanied by its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any allowance 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 capably 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 new 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 build up members and accept membership progress 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 once 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 encouragement of documents and keeping in view all 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.