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A company is referred to as Section 8 Company when it is registered as a Non-Profit Organisation and has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and similar objectives.
No minimum capital limit has been mentioned for a Section 8 Company.
A Section 8 Company is exempted from payment of stamp duty.
These companies can enjoy exemption from using Private Limited or Limited in their name.
A registered non-profit has better credibility among donors and members.
Section 8 companies can enjoy various tax benefits and exemptions.
Section 8 company has a separate legal existence from its members.