Section 8 Company

◈Definition

A Section 8 Company is the non-profit company form under the Companies Act 2013. Its objects must be the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection. Profits and income must be applied exclusively toward those objects and cannot be distributed as dividends. Section 8 companies (identified by 'NPL' in CIN) enjoy certain tax benefits and are used by foundations, trusts-in-company-form, and social enterprises.

◉See also

• Private Limited Company (PTC)(PTC)

  The default legal form for Indian companies — limited liability, restricted share transfer, 2–200 members.

• Nidhi Company

  A mutual-benefit society in company form, regulated under Section 406 of the Companies Act.

• Producer Company

  A specialised company form for primary producers — farmers, horticulturists, forestry workers.

⬢Related guide

• Types of Indian Companies — Private, Public, OPC, Section 8 and More

  Private limited is the default, but Indian companies come in many legal forms. Here's a practical guide to the ones you'll encounter on MCA.