Section 8 Company

The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.

To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company.

In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.

The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders.

A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.

An individual or group of individuals can apply for Section 8 Company Registration if it holds the below-mentioned intentions. The objectives have to be confirmed to the satisfaction of the Central Government.

  1. If the company intends to promote science, commerce, education, art, sports, research, charity, social welfare, protection of the environment, or other objectives
  2. If the company has the intention to invest all the profits or the income generated after incorporation in the promotion of such objects only;
  3. When the company is not intending to pay any dividends to its members.