Glossary · Compliance & Registrations
Section 8 Company
A company registered under Section 8 of the Companies Act, 2013 for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection, with no profit motive.
A Section 8 company is formed with 'limited' or 'private limited' removed from its name. It must have at least 2 directors (3 for a public company) and apply to the Central Government for a license. The profits and assets are applied solely towards promoting its objects, with no dividend paid to members. Section 8 companies enjoy tax exemptions (12AB registration under the IT Act) and are preferred by NGOs, charitable institutions, and industry bodies for their credibility and structure.
Examples
A foundation promoting rural education registers as 'Bharat Shiksha Foundation' under Section 8 to get tax benefits and credibility.