Section 8 company is exempt from taxes on revenue allocated to charity, which boosts resources for social initiatives.
There is no such minimum paid up capital for Section 8 Company registration. Further, the capital structure can be as per the needs and requirements of the company.
No stamp duty is required to be paid, which is generally imposed on the MOA and AOA in case of a public or private limited company.
A Section 8 company also has limited liability as per their share; therefore, the members of the Section 8 company are liable only for the percentage of claims to which they have subscribed. And they will not be held personally responsible for any of the losses faced by the company.
Section 8 companies are regarded as more authentic than any other charitable organization because it is regulated under the Companies Act GST, and Tax laws also become applicable to Section 8 companies.
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