Section 8 Company

A Section 8 company registration, governed by the Companies Act, 2013 (formerly known as the Companies Act, 1956), is an organization established with the primary objective of promoting fine arts, science, literature, knowledge sharing, or engaging in charitable activities. These companies were previously referred to as Section 25 companies under the old Companies Act and are regulated under the Companies Act, 2013.

Section 8 companies form a specific category of limited companies under this act, and the government grants them an exclusive license as per the Section 8 Companies Act. To obtain this license, there are three main conditions that these companies must fulfill:

1. The company should be registered for charitable purposes.
2. Income and profits should be utilized towards these objectives.
3. The company should not distribute any dividend to its members.