Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an marginal to the promoters to move on the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Rupaspur which are dynamic in various fields for the welfare of public at large. Our fascination service includes Name Selection, Memorandum Drafting and Company Registration. We find the keep for our clients best in class services suitably that they are not fearful with any non consent during the initial stages of there growth. In Rupaspur we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally pronounce of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies functional in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there say not fade away with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may fall with words in the announce of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization 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 allowance 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 skillfully 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 below Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of supplementary 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 ensue members and accept membership enhance from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration like Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due announcement 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.