Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an marginal to the promoters to press on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits more than the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Punpun which are enthusiastic in various fields for the welfare of public at large. Our fascination service includes Name Selection, Memorandum Drafting and Company Registration. We find the grant for our clients best in class services consequently that they are not scared with any non compliance during the initial stages of there growth. In Punpun we take a maximum of 10 days time to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally herald of a company ends once word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of zip in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not grow less with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there read out may fade away with words similar to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which otherwise of distributing its surplus/profit among its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any keep in the form of dividend or gain sharing. Company registered under 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 under 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 under Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of other rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also be credited with members and accept membership proceed 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 with 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 confirmation 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.