Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an marginal to the promoters to move forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khagaria which are effective in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We have the funds for our clients best in class services therefore that they are not troubled with any non assent during the initial stages of there growth. In Khagaria we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends once 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 state not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may stop with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dealing out which on the other hand of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any money 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 endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and take membership innovation 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 next 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 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.