Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an substitute to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Saharsa which are in force in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services consequently that they are not fearful with any non consent during the initial stages of there growth. In Saharsa we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publicize of a company ends when 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 publicity of Arts, Science, Commerce, Education, Literature etc to have there say not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fade away with words subsequent to Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which then again of distributing its surplus/profit among its members, applies the similar 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 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 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 accept donations from public subject to applicability of further rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also increase members and take membership proceed from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration taking into account 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 confirmation of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.