Description

The benefits of Section 8 Registration are as follows:

• Legal recognition: Section 8 companies enjoy legal recognition as not-for-profit organizations, which helps them attract grants, donations, and other forms of funding.
• Tax exemptions: Section 8 companies are eligible for various tax exemptions, including exemption from paying income tax on their profits, provided the profits are used for charitable purposes.
• Limited liability: Section 8 companies have the advantage of limited liability, which means that the personal assets of the members are protected in case of any legal action against the company.
• Perpetual succession: Section 8 companies have perpetual succession, which means that the company continues to exist even if its members change or die.
• Credibility: Section 8 registration adds credibility to the organization and helps to build trust among donors, investors, and the public.
• Exemption from minimum capital requirement: Section 8 companies are exempt from the requirement of minimum capital, making it easier for smaller organizations to register under this category.
• Corporate structure: Section 8 companies have a formal corporate structure, which helps to establish clear lines of authority and decision-making processes.
• Social impact: Section 8 companies are formed with the primary objective of promoting social welfare, which means that they can make a significant impact on society by addressing social, cultural, and economic issues.