Section 8 Company or Section 25 Company (As Per Earlier Company Act, 1956) is like a Society or Trust formed not for profit purposes etc. The Section 8 company is just like a private limited company incorporation under section 8 of Companies Act, 2013 but it can be formed only for the purpose of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object subject to the condition that profits are applied for the above objects only and not for the benefit of members.
Section 8 company is governed by Ministry of Corporate Affairs which is under Central Government. It has a separate legal entity, Transparency and credibility among the public donors, Government and its departments and Various other stakeholders. The financial transactions and statements are also accessible to general public at large.
Section 8 company may also require to obtain various government registrations like Goods and Service Tax, Trademark Registration, Registrations with local authorities. These type of organization have adhere to their bye laws and intimate any changes therein to the registrar of companies by filing forms. Unlike society/Trust it can operate in multiple states without taking any separate registration in each state or taking any special registration with Registrar of companies.
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