Section 8 Company
A Section-8 Company is gift to the community as it encourages Science, Sports, Arts, Education, Social Welfare, Religion, Charity and Environment protection etc. Apply its profits if an or other income in promoting its object and it does not pay any dividend to its members. It is an age old concept earlier it was known as section 25 under companies act and now it is known as section-8 Company.
It work towards a diverse range, right from women empowerment, children education, community development, social welfare and environment protection.
If you want to Register your Section-8 Company than HMJG LEGAL E-SERVICE INDIA PVT LTD will help you in Registration and in all the Compliance after Registration.
- Many privilege and exemption under company law
- Donor of the company can claim Tax deduction under section 80G of the income tax Act
- It functions same like a limited Company including all the rights and obligation however it cannot use the words Section-8 or limited in its name.
ADVANTAGES OF SECTION 8 COMPANY
Section-8 Company can only be registered with names that contain any one of the below word like foundation, forum, association, Federation, society, Confederation, council, club charities, institute, Electoral Trust, academy, organization, chamber of commerce, development and more.
Like other Company section-8 company will also have revenue, profit , expenses, and losses. However in Section-8 Company the profit can used for furtherance of its object i.e charitable purpose only.
A Section-8 Company can be formed by 2 persons only, by complying with the prescribed formalities of the Companies Act.
The liability of the shareholder is limited upto unpaid subscription money in his name and the personal Asset does not get affected by it.
Section -8 Company has more importance as compare to Trust or Society. Act provide many privileges and exemption under the law to the section-8 Company as compare to Trust or Society.
SEPARATE LEGAL ENTITY
Section 8 Company is an artificial distinct. Entity so it is separated by law from its owner. In case of Sole Proprietorship, business comes to wound up in case of death of the owner unlike of the Section 8 Company.