A Section 8 Company is a Non-Profit Organization (NPO) registered under the Companies Act, 2013. Its primary objective is to promote charitable activities such as commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection.
Unlike typical companies, its profits cannot be distributed as dividends to members and must be reinvested into its objectives. While they can have share capital, it doesn't function in the traditional profit-making sense..
A minimum of two individuals with a non-profit goal can obtain a Section 8 company registration. This creates a trusted legal structure, allowing the organization to manage its funds, sign contracts, and handle all legal matters in its name.
Features of Section 8 (NGO) Company:
