Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an substitute to the promoters to take forward the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kidwaipuri which are in force in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services for that reason that they are not terrified with any non compliance during the initial stages of there growth. In Kidwaipuri we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies operating in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publicize not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may grow less with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An supervision which on the other hand of distributing its surplus/profit in the middle of 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 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 well 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 under Section 8 can accept donations from public subject to applicability of additional rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and accept membership increase 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 in the proclaim 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 under Section 8, and the Ministry of Corporate Affairs can after due confirmation of documents and keeping in view anything 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.