As per Section 8 of the Company Act, states the provisions related to the formation of a company with charitable objects. Section 8 Company Registration must be done as per Companies Rule, 2013. There are numerous advantages of Section 8 Company as compared to Private Limited Company registration.
Advantages of Section 8 Company
- Tax benefits: Section 8 Company is a non-profit organization that is why they are exempted from some provisions of the income tax. They are also given numerous other deductions and other tax benefits. They avail benefits under section 80G of the Income Tax Act, 1961. They also are required to pay less stamp duty as compared to other organizations.
- Minimized Share Capital: Unlike the other limited companies like private, public, or one person, the companies registered under section 8 doesn’t require much share capital. They can be directly funded from subscriptions or donations made to them.
There are various advantages of Section 8 Company like exemptions from the income tax act, ease of fixing the date, time, and place for an annual general meeting, conduction of general meetings under a short period of notice i.e., within 14 days instead of 21 days for limited companies, etc.
For more information regarding Section 8 company registration, you can visit Company registration online.
How many members are required for Section 8 Company Registration?