Section 8 company is a concept that combines the gain of a NGO and a Corporate. It provides an substitute to the promoters to go ahead the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits higher than the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Postal Park which are working in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We allow our clients best in class services thus that they are not troubled with any non assent during the initial stages of there growth. In Postal Park we accept a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally say of a company ends like word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies dynamic in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there broadcast not end with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there post may end with words in the impression of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An direction which otherwise of distributing its surplus/profit along with its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any child support 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 with ease 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 supplementary rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also mount up members and accept membership go ahead 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 past 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 support 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.