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:
- 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.
- 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.
- 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.
- 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.
- 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.