Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an different to the promoters to press on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Kishanganj which are functional in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services appropriately that they are not frightened with any non consent during the initial stages of there growth. In Kishanganj we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends similar to 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 reveal not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may end with words next Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An doling out which then again of distributing its surplus/profit accompanied by 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 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 below Section 8
DONATION:
A company incorporated below Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also ensue members and accept membership early payment 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 past Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due declaration of documents and keeping in view anything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.