The basic difference between Private limited and Section 8 in terms of their basic definitions, minimum requirements of shareholders, directors and capital for each of these forms of entities are detailed below.

1. Difference between a Section 8 Company
and a Private Limited Company?
The basic difference between Private limited and Section 8 in terms of their
basic definitions, minimum requirements of shareholders, directors and
capital for each of these forms of entities are detailed below.
Definition
Let us understand how private limited and section 8 companies differ in
their basic definition:
What is a Private Limited Company?
A private limited company is a small business entity which is privately held.
This is a type of business entity which limits owner liability to their shares,
limits the number of shareholders to 50, and also restricts the
shareholders from trading of shares publicly. These are generally formed
for trading and business purposes. These are profit making entities.
What is a Section 8 Company?
In India, a non – profit organization which are often known as NGO can be
registered as a Company under Section 8 of the Companies Act,
2013 (worthwhile Section 25 of the Companies Act, 1956) and it can also
be registered as a Trust and a Society. Section 8 Company format of an
NGO is the most popular form of NGO in India. It is, however, easy to
register, run or manage a Section 8 Company in comparison of a Trust and
a Society. This, however, enables the government to register any
association who have charitable objectives such as to promote sports,
commerce, art and culture, education, research etc as a limited company,
without adding of the words ‘pvt. Ltd.’
Minimum Shareholders and Directors Required
Companies Act 2013 has stipulated the minimum number of Directors and
Shareholder for each of these types of companies. Required minimum
number of Directors and Shareholders in Private limited and Section 8
Company are:

2. Private Limited Company – Minimum of 2 shareholders and 2 directors are
required.
Section 8 Company-Minimum of 2 shareholders and 2 directors are
required.
Minimum Capital Contribution
At the time of company registration, the capital contribution is made by
each of the promoters. To ensure that a company has funds to carry on
business activities basic minimum capital contribution amount is fixed by
the government. Minimum capital contribution for Private limited and
Section 8 Company are:
1. Private limited company: Minimum Authorized Share Capital shall be
Rs. 1,00,000 (INR One Lac).
2. Section 8 company: No minimum requirement of capital has been
specified
There is a huge difference between the Private limited and Section 8
Company. Every type of company is useful in its own aspects.
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