Features of Section 8 Company
There are various features of Section 8 company which is not available to other companies as per the Companies Act 2013.
1. Objective: The objective of Section 8 Company is only to promote various types of activities in the country. This company does not have the objective of earning profit by the business, unlike other businesses.
2. No Minimum Capital: As per the Companies Act, 2013 there is no minimum capital that is required to form a Section 8 Company.
3. Limited Liability: The members of these companies are only accountable for the acts of the company to a certain level. Members of Section 8 Company cannot be made personally liable for any act done by the company.
4. Government License: The company must obtain the license for their practice from the central government or as per the rules established by them. These companies are there for a cause, and if the government thinks that they are not doing their part effectively then the government can also take their license back.
5. Privileges: The Companies Act, 2013 provides various benefits and exemptions to Section 8 Companies as these are formed for a social cause.
6. Less Stamp Duty and Tax Benefits: The government imposes a very minimal amount of stamp duty in case of incorporation of a Section 8 Company. These companies also avail various tax benefits as per the Companies Act, 2013.