The primary goal of the section 8 company will be to serve charitable purposes in India. Ultimately such companies will fall under the companies act 2013. So, having a good hold over the process associate with section 8 company registration is consider to be a great idea for individuals and the following are some of the basic benefits associate with it:
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Taxation benefits:
Section 8 companies are more reliable in comparison to charitable institutions. But ultimately will be having easy accessibility to multiple exemptions under the income tax act. All these kinds of companies are very well qualified by the authorities to apply for multiple taxation benefits. And ultimately make sure that rendering plenty of tax benefits. To all these kinds of companies will done very easily.
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Zero stamp duty:
Section 8 companies are never liable to pay any kind of stamp duty on the memorandum of association or the articles of association and ultimately helps in making sure that people will be able to enjoy a good command over the technicalities of the field.
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Minimum share capital:
Unlike the private, public or one-person company the section 8 company can very easily be set up with the help of no consideration to the minimum share capital in the cases of paid-up capital. The companies in this particular case will be allow to alter their capital structure. Following their needs and requirements even later on without any kind of problem.
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Separate legal entity:
Section 8 companies in this particular world will be possessing a distinct legal status. Which implies that everyone will be able to deal with things with efficiency. And further people will be able to deal with the independence element without any kind of problem. Section 8 entity in this particular case will help provide people with perpetual existence very easily.
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Improved level of credibility:
The flexible and transparent constitutional framework in this particular case will help provide people with an element of better credibility in comparison to NGOs, society or trust throughout the process.
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Eligible for the foreign contribution:
Section 8 companies will also be very easily eligible for receiving overseas funds. So, In the nation provide they have never been register under the foreign contribution regulation act 2010. Ultimately this will be very much helpful in terms of using charitable campaigns. Without any kind of funding requirement in the whole process and ultimately everything will be sort out very successfully.
Hence, whenever the group of persons is very much interest. To serve the philanthropic objectives then they need to be very much clear about the element of section 8 company incorporation documents. So that things will be sorted out very easily and everyone will be able to comply with the legal implications without any kind of problem. In this particular case, stability will be definitely present in the whole process. And everyone will be able to deal with things with proper planning.
