A Section 8 Company is a non-profit organization (NPO) registered under Section 8 of the Companies Act, 2013 in India. The primary objective of such a company is to promote charitable causes such as: Social welfare, Education, Science and research, Arts and culture, Sports, Religion, Environmental protection, Commerce and other philanthropic activities

Unlike other companies, Section 8 companies do not distribute profits to their members. Instead, any income or profit generated is reinvested in furthering the organization's objectives.

These entities were earlier known as Section 25 companies under the Companies Act, 1956.

Features of Section 8 Companies

Non-Profit Objective: The core purpose is to promote charitable or social objectives like education, science, art, environment, or welfare—not to earn profits.

Separate Legal Entity: A Section 8 company is a distinct legal entity, separate from its members, and can own property, sue, or be sued in its own name.

Government License: Requires a license from the Central Government (via the Registrar of Companies) to operate as a Section 8 company.

No Minimum Capital Requirement: There is no minimum capital requirement for incorporating a Section 8 company, unlike some other company types.

Board of Directors: Managed by a Board of Directors, just like any other company. It must conduct regular board meetings and follow governance protocols.

Exemptions and Tax Benefits: Eligible for various tax exemptions under the Income Tax Act (subject to registration under sections like 12A & 80G).