Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an marginal to the promoters to move ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Pirbahor which are in action in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We come up with the child maintenance for our clients best in class services suitably that they are not anxious with any non acceptance during the initial stages of there growth. In Pirbahor we take a maximum of 10 days period to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies vigorous in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may decrease with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dispensation which on the other hand of distributing its surplus/profit accompanied by its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child 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 well 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 under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of new rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also increase members and accept membership momentum from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration afterward 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 encouragement 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.