Tax Benefits
Eligible for various tax exemptions under Income Tax Act (especially if registered under 12A and 80G).

No Minimum Capital Requirement
Unlike private limited companies, there's no minimum capital requirement to start.

Limited Liability
Members have limited liability; personal assets are not at risk.

Credible and Trustworthy
Regulated by the Companies Act and Registrar of Companies, it gives high trust among donors, government, and stakeholders.

Separate Legal Entity
Has its own legal identity, can own assets and enter into contracts in its own name.

Exemption from Stamp Duty
No stamp duty on registration which is otherwise applicable for private or public limited companies.

Perpetual Succession
The company continues to exist regardless of changes in members or directors.

Eligible for Grants and Donations
Easier access to government and foreign funding (especially after FCRA registration).

No Profit Distribution
Profits cannot be distributed among members; must be reinvested for the company’s objectives.

Strict Regulatory Compliance
Requires regular filings, audit reports, board meetings, etc., even if it’s a non-profit.

Central Government Approval
Name approval and license from the Central Government (MCA) is mandatory — takes time.

Limited Objectives
Cannot undertake activities outside the charitable scope (e.g., arts, education, environment, etc.).

More Scrutiny
Being a non-profit, financials and activities are closely watched to ensure funds are not misused.

Restrictions on Name
Can’t use suffixes like “Ltd” or “Pvt Ltd” — must indicate it's a non-profit in nature.