Reasons to Register a Section 8 Company
Section 8 Companies are registered under the Companies Act, 2013. Hence, the process for registration and certificate of incorporation for a Section 8 Company is issued by the Ministry of Corporate Affairs, Government of India.Know More IMPORTANT
Section 8 Companies can be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organisation, Federation, Chamber of Commerce, Development and more.
Trusts are managed by Trustees as per a Trust Deed. Section 8 Company does not have the concept of Trustees. Hence, Section 8 Companies are managed by the Board of Directors based on the MOA and AOA of the Section 8 Company.
Like a private limited company, a Section 8 Company will also have revenue, expenses, profits and losses. However, in a Section 8 Company the profits can be used only for the charitable or not-for-profit purposes mentioned in the MOA.
The management of a Section 8 Company can be easily transferred from one person to another by altering the changing the composition of Board of Directors. Section 8 Company can also be controlled by shareholders.