Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an complementary 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 time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khelari which are operational in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services as a result that they are not troubled with any non acceptance during the initial stages of there growth. In Khelari we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally post of a company ends similar to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies practicing in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there reveal not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fade away with words bearing in mind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which otherwise of distributing its surplus/profit among its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 skillfully 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 under 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 new 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 accumulate members and take membership money in the works front from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration in the way of being of 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 support 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.