Private Limited vs Section 8 Company
When deciding between forming a Private Limited Company and a Section 8 Company in India, it's essential to understand the key differences, purposes, benefits, and legal requirements of each. Here's a comparative analysis: 1. Purpose and Objectives Private Limited Company: Primary Purpose: Profit-making business. Objectives: To carry out business activities with the aim of earning profits and distributing them among shareholders. Section 8 Company: Primary Purpose: Non-profit organization. Objectives: Promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other useful object, and using the income for promoting these objectives without distributing dividends to members. 2. Incorporation and Governing Law Private Limited Company: Governing Law: Companies Act, 2013. Incorporation: Requires at least 2 directors and 2 shareholders. Must have "Private Limited" at the end of its name. Secti...