Section 8 Company

Advantages of Becoming Section 8 Company

Separate Legal Existence

By Section 8 company registration, a separate legal entity will be incorporated with a separate PAN. A corporate entity attracts more funds from donors.

Limited Libility

The liability of the members will be limited up to the subscribed share capital of the company.

No Stamp Duty on MOA & AOA

Basically, the government charges the stamp duty on MOA & AOA at the time of incorporation of the company. But the government does not charge the stamp duty on MOA & AOA for the incorporation of Section 8 Company.

Exemptions for Directors

A Section 8 company can appoint more than 15 directors even without taking approval from shareholders. The appointment for independent director shall not apply to a section 8 company.

Tax Benefits

The section 8 companies get tax exemptions in the Income Tax. Furthermore, the donors can also claim the tax exemptions by donating funds to the section 8 company.

Appointment of Company Secretary

It is a privilege for the section 8 companies that even if it falls under the criteria for the mandatory appointment of Company Secretary, the company can appoint any other qualified person as a Company Secretary even though he/she is not a member of ICSI.