Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an unorthodox to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on height of the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Sheohar which are in force in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We find the child maintenance for our clients best in class services as a result that they are not anxious with any non submission during the initial stages of there growth. In Sheohar we take a maximum of 10 days mature to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends next 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 publicity of Arts, Science, Commerce, Education, Literature etc to have there pronounce not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may halt with words subsequently Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An giving out which instead 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 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 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 below Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of extra 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 grow members and take membership improve 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 past 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 confirmation of documents and keeping in view anything 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.