Section 8 Company Registration (2).pptx
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A Section 8 Company, as per the Companies Act, 2013 in India, is a type of non-profit organization that is registered for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other such noble cause. These companies are formed primarily for promoting charitable and not-for-profit objectives, and they are regulated by the Ministry of Corporate Affairs.
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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.Difference between a Section 8 Company and a Private Limited Company?
Difference between a Section 8 Company and a Private Limited Company?Manish Anil Gupta & Co. - A CA firm in Delhi, India
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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.Difference between a Section 8 Company and a Private Limited Company?
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Section 8 Company Registration (2).pptx
- 1. Section 8 Company Registration In India a Section 8 Company Registration is a legal structure created under the Companies Act, 2013 (previously the Companies Act, 1956). It is a type of non-profit organization that is formed for promoting charitable, scientific, artistic, research, or social welfare purposes. Section 8 companies are essentially nonprofit organizations and are regulated by the Ministry of Corporate Affairs.
- 2. Section 8 Company Registration Benefits Nonprofit Status: A Section 8 Company is established for charitable or nonprofit purposes, allowing it to focus on social welfare and not profit distribution to its members. Limited Liability: Members of a Section 8 Company have limited liability. Their personal assets are protected in case the company faces financial difficulties. Exemption from Stamp Duty: Section 8 Companies may be eligible for stamp duty exemptions or concessions in certain states. Tax Benefits: These companies can enjoy tax exemptions under Section 12AA and 80G of the Income Tax Act, making donations to them tax-deductible for donors. Credibility and Trust: Registered Section 8 Companies often have more credibility, trust, and recognition when seeking grants or donations from government bodies, corporations, and philanthropic organizations.