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A Section 8 Company is a special type of non-profit organization (NPO) in India, formed for charitable or social purposes, not for profit.
It is governed by Section 8 of the Companies Act, 2013, and licensed by the Central Government (via MCA).
A Section 8 Company is a company established to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection, and intends to apply its profits only for promoting its objectives — not for distributing dividends to its members.
| Feature | Description |
|---|---|
| Non-profit motive | Profits must be reinvested into the company’s objectives |
| Legal entity | Separate legal entity from its members |
| No dividend | Members/shareholders cannot receive any profit/dividend |
| Registration | Requires Central Government (MCA) license under Section 8 |
| Structure | Can be formed as a Private or Public limited company |
| Tax Benefits | Eligible for 80G and 12A exemptions under Income Tax Act |