Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an other to the promoters to press forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits more than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Pandra which are functional in various fields for the welfare of public at large. Our concentration service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services thus that they are not anxious with any non compliance during the initial stages of there growth. In Pandra we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends next word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies practicing in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there pronounce not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may subside with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which otherwise of distributing its surplus/profit in the course of its members, applies the thesame 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 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 below the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of additional rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also build up members and accept membership go forward 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 taking into account 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 encouragement of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.