Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an another to the promoters to proceed the idea of Social cause on 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 Purnia which are enthusiastic in various fields for the welfare of public at large. Our immersion service includes Name Selection, Memorandum Drafting and Company Registration. We give our clients best in class services as a result that they are not terrified with any non consent during the initial stages of there growth. In Purnia we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends subsequent to word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies on the go in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there post not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may terminate with words taking into account Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which on the other hand of distributing its surplus/profit among its members, applies the same 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 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 under 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 accept donations from public subject to applicability of additional 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 go to members and accept membership loan from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration subsequently 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 upholding of documents and keeping in view whatever 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.