Section 8 company is a concept that combines the gain 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 more than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Namkum which are dynamic in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We find the allowance for our clients best in class services so that they are not anxious with any non agreement during the initial stages of there growth. In Namkum we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally read out of a company ends taking into consideration word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies vigorous in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there reveal not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there name may end with words as soon as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization 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 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 skillfully 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of new rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also grow members and take 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 later than Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below 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 whatever 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.