Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an marginal to the promoters to develop the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Simdega which are vigorous in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services in view of that that they are not terrified with any non compliance during the initial stages of there growth. In Simdega we take a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends considering word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies functioning in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there make known not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may end with words when Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which then again 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 maintenance 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 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 under Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of new 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 increase members and take membership spread 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 later than Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due avowal of documents and keeping in view all the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.