Section 8 Company

A Section 8 Company in India is a non-profit organization registered under the Companies Act, 2013, for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection. Its primary objective is to apply all profits or income solely towards these charitable objectives, strictly prohibiting dividend distribution to its members. Like a Private Limited Company, it possesses a separate legal entity status and limited liability for its members, providing credibility and stability. These companies also enjoy various tax benefits under the Income Tax Act (e.g., 12A and 80G registrations) and are exempt from minimum paid-up capital requirements. Due to their transparent and regulated structure, Section 8 Companies are often preferred by donors and for receiving CSR funding.