Section 8 Company Registration

A business is referred to as a Section 8 company when it is registered as a non-profit organization (NPO), The Company motive is to promote the social activities, environment Awareness, free education to children, support sports, social welfare etc. And your aim to use your Wealth or Earning (if any) or other income to accomplish these goals.

Who can incorporate A section 8 Company ?

A person or group of people can go for Section 8 business registration if they have the intentions promote the social activities, environment Awareness, free education to poor people, support sports, social welfare etc and the company is not intending to pay any dividends to its members. The objectives must be confirmed to the satisfaction of the central government.

Importance of Section 8 Company

1. Tax Exemption

The Donors who are contributing to section 8 company, get numerous Tax Exemption. Even they can claim Tax exemption against the donation they made to a Section 8 company. 

2. No stamp duty Payble

As in other structure such as private limited or public limited stamp duty is applicable but in a Section 8 company is exempted for the payment of stamp duty applicable for registration

3. Seprate Legal Entity

Section 8 Company holds their own Identity same as other public and private structure. Section 8 Company has its perpetual Existence.

Section 8 Company has its own saperate legal staniding from it's members.

4. No minimum Capital Required

There is no any fixed capital required over section 8 company as this required in public and private company. But the capital structure can be altered at any stage as the groth of company required.

5. No Title Required

The names requirements of the private limited or a public limited company, a section 8 company does not require to use a suffix next to its name.