SEC. 8 COMPANY

A Section 8 company is a company which is incorporated with charitable objects such as the promotion of commerce, arts, science, sports, education, protection of the environment, religion, charity, etc. It intends to apply all of their gain, income, or other earnings for promoting these objects. However, by promoting it as a non-profit organization, the Act does not stop the company from profit creation but it prohibits distributing profit among members of this organization.

All charitable companies are registered under Section 8 of the Companies Act, 2013. This provides the company with special status due to its objectives. Compared to other types of companies, Section 8 companies enjoy various relaxations & exemptions since they are running businesses for a good cause.

These are limited companies, which would be registered under the Companies Act. However, they do not have to add phrase “limited” to their name, and they can register as private limited or public limited companies. Moreover, a Section 8 company has the authority to work anywhere in the country.

Section 8 Company Registration
The process and requirements of a Section 8 Company is completely the same as that of a limited company. This registration process comes with all the rights and obligations that come with a limited company. The only difference is that a Section 8 Company does not have to or rather cannot use the words “Section 8” or “Limited” in their name.
The process of registering a Section 8 Company is the same as incorporating an NGO, Trust or Co-operative Society under the Companies Act 2013. However, additional requirement to seek a license from the central government under Section 8 of the Companies Act, 2013. This license provides you with the authority to delete public/private limits from their organization's name