Section 8 Companies ( Companies Not For Profit )
Companies which are formed for the following purpose are known as Section 8 Companies or Association not for Profit.
- For the purposes of promoting commerce, art, science, religion, charity to any other useful object.
- With intention to apply its profits or other income for promoting its objects, and which prohibits payment of any dividend to its members.
- Section 8 Company is a voluntary association of person formed for promotional activities. Section 8 company is more suitable option to establish a Non – Profit or Non- Governmental Organisation (NGO), rather than establishing a Trust or a Society.
Section 8 Companies enjoys various Exemptions under Companies Act 2013. Section 8 Companies are formed as Public or Private Company having a limited liability under the Companies Act 2013.