Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an unconventional to the promoters to expand the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Paliganj which are in force in various fields for the welfare of public at large. Our inclusion service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services appropriately that they are not anxious with any non agreement during the initial stages of there growth. In Paliganj we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends taking into account word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies practicing in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there broadcast not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may end with words considering Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which instead of distributing its surplus/profit among its members, applies the similar 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 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 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 additional rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also ensue members and accept membership take forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration subsequent to Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due statement of documents and keeping in view everything the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.