Section 8 companies
Advantages of Section 8 companies
Company Limited by Guarantee:
Section 8 companies can be formed with or without share capital. In case they are formed without share capital, the necessary funds for carrying the business are brought in form of donations, subscriptions from members of such company. The constitution of such companies can either be that of a Private Company or a Public Company.
Not Required To Add The Suffix:
Section 8 Companies are not required to add the suffix Limited or Private Limited at the end of their name. All companies having limited liability are required to use the term ‘limited’ or ‘private limited’ as the case may be in their names as required by section 13. But section 8 companies are allowed to dispense with the use of term ‘limited’ or ‘private limited’ from their names [sub-sec. (6)].