Glossary
Section 8 Company
Section 8 Company (under Companies Act, 2013)
A Section 8 Company is a non-profit corporate entity established to promote commerce, art, science, sports, education, research, social welfare, or charity, where all profits must be reinvested to achieve its objectives, and no dividends are paid to members.
Where it appears in practice
It matters when founders want a recognized corporate structure for a non-profit with higher credibility among corporate donors and government bodies compared to standard trusts or societies.
A worked example
Founders want to start an organization to clean rivers. They register a Section 8 Company, which enjoys the structured governance of a private limited company but applies its ₹20 Lakhs [VERIFY] annual surplus purely for its environmental goals rather than distributing it.
Related terms
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Entity Formation