Section 8 company can be equated with that of Trust established under trust act. Section 8 company is formed for promoting
the object such as sport,education,health,art,science, religion, charity or similar object.
Now we can have a charitable trust which is registered as section 8 company rather than trust which is little clumsy and tedious task. It is easiest way to register a charitable organization.
• Two directors( in case of private company) Three directors( public company)
• Two members(in case of private company) Three members(Public Company)
• Directors and shareholders can be the same person.
Advantages Of Section 25 Company
• Deduction of donation given to Sec 25 co. under Section 80G of income tax act.
• No any requirement as to minimum capital
• Firm can become member
• No need to pay stamp duty on Registration
Conditions To be Fulfilled
• Profit is applied only for promoting Object
• Can not declare dividend to promoters
• Member cannot be appointed as Officer on Remuneration
• Any alteration in MOA and AOA requires Previous approval of Central Government