What are the Advantages of Registering a Section 8 Company

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What are the Advantages of Registering a Section 8 Company

A section 8 company is one of the 6 “company” business entities that are registered under The Companies Act 2013. A non-profit company, its goal is to serve the people and help the communities by promoting education, arts, sciences, charities, and other altruistic goals. When we talk about section 8 company benefits, being able to help people is the greatest one there is – at least for your soul. However, the advantages grow beyond that.

Advantages of Section 8 Company

Section 8 company advantages are not limited to giving internal satisfaction of helping people. From a financial standpoint, there are advantages that make going through the section 8 company registration process a strategic move:

1. There are many tax benefits: As a non-profit organization, a Section 8 company organization gets several tax benefits. In fact, there are some provisions in which they are exempted from paying income tax.
2. The share capital is minimal: Unlike a limited company, a section 8 company doesn’t have to minimum share capital. It means that even if you don’t have any capital to put into your Section 8 Company, you can set it up.
3. It doesn’t have to add suffix: Section 8 Company doesn’t have to add “limited company” at the end of its name. It’s not required for this type of company to use any title either.
4. Transferring the ownership is easy: As the structure of this non-profit organization is same as the company, it’s easy to transfer its ownership within its members.
5. It is more trusted than other organizations: Anyone can start a non-profit organization, but it’s the section 8 company that is seen credible by the government, and the people. Therefore, it’s almost certain that your NPO, once you register it as a Section 8 Company, would receive more donations.

As you can see, the benefits of setting up a section 8 company are many. But especially, it can make your charity organization more credible.

To get started and set up your own Section 8 Company, feel free to reach out to our experts.

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