Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an marginal to the promoters to increase the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Jamui which are full of life in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services appropriately that they are not scared with any non compliance during the initial stages of there growth. In Jamui we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies in force in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may grow less with words later than Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An running which on the other hand of distributing its surplus/profit in the midst of 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 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 competently 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 additional rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also grow members and accept membership proceed from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration later 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 avowal 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.