A specific kind of limited corporation is a Section 8 company. It is not required to use the terms “private limited” or “limited” in its name, but it does have the same rights and limitations as a standard limited company. It will not be allowed to reap the proceeds of its operations if it is registered as a non-profit organisation.

A Section 8 business also has the advantage of having up to two directors. Over a regular corporation, this provides an added advantage. Additionally, section eight businesses are substantially simpler to launch. To establish a Section 501(c), you don’t need to spend a lot of money (3). The ROC will assist you in submitting your annual reports to the appropriate parties. Organizations looking to make a profit should avoid this category.

A Section 8 firm has a lower tax burden despite being more expensive than a conventional corporation. Similar to a Society or Trust, this tax-deductible entity follows a particular set of regulations. It can use its earnings to aid low-income societies because it is a registered charity. A section 8 corporation has a better reputation because it is also simpler to register. The terms “Limited” or “Private Limited” are not required to be present in the name of a section 8 corporation.