Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an unorthodox to the promoters to proceed the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Masaudhi which are working in various fields for the welfare of public at large. Our concentration service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services fittingly that they are not frightened with any non acceptance during the initial stages of there growth. In Masaudhi we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies involved in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there say not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may terminate with words in the proclaim of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An executive which otherwise of distributing its surplus/profit in the middle of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any maintenance 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 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 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 accumulate members and accept membership increase from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration following 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 confirmation 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.