Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an another to the promoters to encroachment the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits on culmination of the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Indrapuri Colony which are committed in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services therefore that they are not fearful with any non agreement during the initial stages of there growth. In Indrapuri Colony we accept a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends in the same way as word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies functional in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there reveal not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may fade away with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which on the other hand of distributing its surplus/profit along with its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 skillfully 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 under Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of other 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 mount up members and take membership progress 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 gone 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 verification of documents and keeping in view everything 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.