Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an substitute to the promoters to early payment the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits on pinnacle of the period which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in West Singhbhum which are energetic in various fields for the welfare of public at large. Our captivation service includes Name Selection, Memorandum Drafting and Company Registration. We find the maintenance for our clients best in class services in view of that that they are not terrified with any non consent during the initial stages of there growth. In West Singhbhum we accept a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends as soon as word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies in force in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there declare not decline with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there declare may decline with words past Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An admin which otherwise 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 child maintenance in the form of dividend or gain sharing. Company registered under 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 capably 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 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 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 ensue members and accept 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 following 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 pronouncement of documents and keeping in view everything 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.