Section 8 companies of the legal entities which have been started to promote the social welfare, education, charity or any kind of religion-based activities in the whole process. These kinds of section 8 companies are very much synonymous with the non-profit organisations but they have been essentially incorporated with the motive of providing the major benefit of the welfare of society in the whole process.
Beginning in this particular area is very much important for the individuals to understand the concept of section 8 and first of all being very much aware of different types of companies in the industry is very much advisable so that overall goals are very easily achieved. People need to be very much clear about different kinds of applications and legal requirements in the whole thing so that everybody will be on the right track of making the perfect decisions and following are some of the most important advantages of availing the section 8 company incorporation:
- Exemption from the taxes: Different kinds of taxation exemptions are easily provided to the section 8 companies which will help in making sure that everybody will be able to perfectly contribute to society. This particular aspect will always make sure that everybody will be able to enjoy the best possible exemption of taxes against the donation which they have made to the section 8 companies.
- No minimum capital requirements: There is no prescribed limit over the section 8 companies for the minimum capital requirement unlike other entities of public limited but it is very much important for people to note down that the basic capital structure can be perfectly modified at any stage as required for the growth of the company. Hence, these kinds of linear systems very well help in making sure that everybody will be able to survive the industry very competitively.
- There is no stamp duty payable: Section 8 company will be perfectly exempted from the payment of stamp duty for the registration as applicable in the cases of structures like Private Limited or the public limited companies
- Separate legal entity: Section 8 companies also help in holding a good amount of position as well as an identity like other companies’ structures like the separate legal standing from the members. Hence, the section 8 companies will be enjoying the perpetual existence in the industry in the whole process.
- Credibility: Section 8 companies are having more credibility in comparison to any other kind of non-profit organisation for example trust or society. This particular type of company will be perfectly licensed by the central government and will be following stringent regulations as there will be no change of memorandum of association and articles of association in the whole process. Because of the strict compliance associated with this particular company everybody will be able to enjoy a reliable image in comparison to other legal structures.
Hence, all the above-mentioned points are perfectly in the favour of benefits associated with company registered under section 8 so that everybody will be able to fulfil their dreams very successfully.