Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an unconventional to the promoters to progress the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sahebganj which are energetic in various fields for the welfare of public at large. Our assimilation service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services as a result that they are not fearful with any non consent during the initial stages of there growth. In Sahebganj we accept a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends afterward word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies committed in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there publicize not decrease with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there say may halt with words bearing in mind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which on the other hand of distributing its surplus/profit in the midst of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any grant 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 well as private company.
- A minimum of 2 members are required if the company is incorporated below 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 below Section 8 can accept donations from public subject to applicability of supplementary rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also build up members and take membership press on 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 behind 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 verification of documents and keeping in view all 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.