Section 8 company is a concept that combines the plus of a NGO and a Corporate. It provides an substitute to the promoters to improvement the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Lohardaga which are on the go in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We have enough money our clients best in class services fittingly that they are not troubled with any non agreement during the initial stages of there growth. In Lohardaga we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functioning in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there state not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may subside with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which instead 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 allowance in the form of dividend or gain 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 below Section 8 can accept donations from public subject to applicability of further rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also go to members and accept membership further from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration once 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 pronouncement of documents and keeping in view all 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.