Section 8 Company
A Section 8 Company is a form of business entity associated to a Non Profit organization. Unlike other business entities, the purpose of a Section 8 company is not to generate profit. But rather, the purpose of this business entity is to promote charitable causes that involve science, culture, education, religion etc. The profits earned by a NGO Company (Section 8 Company) are directed towards these purposes, not paid as dividends among its members. As a business entity, the Section 8 Company Registration is done under the Companies Act 2013.
After Section 8 Company incorporation, its structure would feel similar to an NGO, a trust or a Society. However, unlike the Society Registration, the NGO Registration that is Section 8 Company formation is dictated by the Companies Act. Therefore, it is the MCA that is responsible for the formation of this type of company.
Why you should register a section 8 Company? There are several benefits associated in incorporating a section 8 company and they are as follows:
- There are several exemptions that the company Law.
- There is no minimum paid up capital required. Therefore, you can guess one of the benefits of section 8 company is that you can set it up even if you don’t have money.
- There is no requirement of a stamp duty.
- Under the income tax act, there are certain tax deductions given to a Section 8 company.
- A section 8 company has clear objectives that allow them to gather donations easily.
- It can be managed easily due to several privileges that it is given.
If you want to help people and work for the betterment of society, you should choose Section 8 company registration. The process of its formation is not easy. However, through Becompliantnow, it can be made easy. Our company registration experts make the prospect of Section 8 company incorporation easy for you. Contact our experts and we shall begin.