The main purpose of establishing a company as a Section 8 company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports, research, etc. … Also, there is no requirement of minimum paid-up capital in case of a Section 8 company.
The company should be formed for the promotion of a social cause. It may be charity, education, industry, sport, etc.
• Income and profits should be used for this purpose or object only.
• No dividend should be paid to its members.
A Section 8 Company is at first to be registered in the same manner as a limited company. After this registration procedure, it needs to obtain a license from the Central Government to be registered under this Section. This license is provided on the basis of the Company’s objectives which have been mentioned in MoA and AoA and some other criteria.
Legal Raasta provides all the necessary services and assistance, to help you conveniently get your business registered as a Section 8 Company.
Section 8 Company is a non-profit organization that has numerous deductions on taxes and other benefits. The benefits are availed under section 80G of the Income Tax Act, 1961. Stamp duty is also less for these companies as compared to other organizations.