Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an different to the promoters to momentum the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the times which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Motihari which are vigorous in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services hence that they are not fearful with any non acceptance during the initial stages of there growth. In Motihari we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends bearing in mind word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies lively in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there herald not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may decrease with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which otherwise of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any keep in the form of dividend or gain sharing. Company registered under 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 with ease 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 further 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 grow members and accept membership move forward 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 with 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 avowal 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.