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An Overview
A Section 8 Company is a type of non-profit organization established under the Companies Act, 2013, in India. It is primarily formed to promote charitable objectives such as social welfare, education, arts, culture, religion, and environmental protection. Unlike other companies, Section 8 Companies do not distribute profits as dividends; instead, they reinvest earnings to further their objectives.
This structure is ideal for individuals or groups who wish to contribute to society while benefiting from the advantages of a corporate entity.
Key Features
Advantages
Disadvantages
Steps to Register a Section 8 Company
FAQ's
A Section 8 Company is a non-profit organization formed to promote charitable or social objectives without distributing profits among its members.
Individuals, partnerships, or organizations can form a Section 8 Company with at least two directors and two shareholders.
No, Section 8 Companies can be registered without any minimum paid-up capital.
Yes, they can generate profits, but these must be reinvested in furthering their objectives and not distributed as dividends.
Section 8 Companies can register under Section 80G and Section 12A of the Income Tax Act to avail of tax exemptions and benefits.
Yes, but they must register under the Foreign Contribution (Regulation) Act (FCRA) to accept foreign donations.
