Advantage of Section 8 Company
A Section 8 Company is a non-profit organization that is why they are exempted from some provisions of income tax. They also are given numerous other deductions and other tax benefits. They are avail benefits under section 80G the Income Tax Act, 1961. They are also required to the pay less stamp duty as the compared to other organizations.
Use of title:
Unlike the other companies, who have use the title as ‘limited company’, section 8 company of the IT Act exempts them for use of the any suffix or title, they can still exercise their are functions without informing to the public of their limited liability status.
Ease at Transfer of title/ownership:
Unlike the limited liability companies who are not allowed to the transfer ownership or title, but per section 8 of the Income Tax Act, 1961 allows the transfer of ownership or title of both movable & immovable interest with in no hurdles or restrictions of the any sort.
Unlike the other limited companies like public, private, or one person, companies registered under the section 8 doesn’t required much be share capital. They can be directly funded from the subscriptions or donations made to them.
Separate Legal entity
A Section 8 Company also are holds its own identity like other companies structures, and has its own separate legal entity standing from the member. A Section 8 Company also has been perpetual existence.