Section 8 Company Benefits
Prior to the introduction of Companies Act, no non-profit entities could be set up or incorporated as a corporate structure in India. The Companies Act, through section 8, provides the flexibility of doing so! It offers all the benefits of a regular company to a non-profit organisation, and makes it easier, simpler, and more convenient to operate. Given below are a few prominent section 8 company benefits to help you clearly understand its significance.
Limited Liability
Members' or shareholders' liability is limited to their contributions, providing personal asset protection while pursuing philanthropic objectives.
Tax Exemptions
Section 8 Companies can avail tax exemptions on income and donations received, enhancing their financial sustainability for social and charitable causes.
Perpetual Existence
These companies have perpetual existence, ensuring the continuity of their charitable initiatives, even in the absence of founders or key members.
Credibility for Grants
Registration as a Section 8 Company enhances credibility, facilitating partnerships, collaborations, and access to resources from government and international organisations.
Promotion of Social Causes
Section 8 Companies are specifically designed to promote social, educational, cultural, and charitable objectives. This enables them to focus on making a positive impact on society.
Improved Business Valuation
A registered trademark significantly enhances the value of your company because it may make your company more attractive to investors or potential buyers.