Section 8 Company

By Author: Ayushi Mishra
Total Articles: 17
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Section 8 company is a corporation, registered as a Non-Profit Organization (NPO). The major intent contains the promotion of arts, commerce, charity, education, protection of the environment and so forth. Thus, the application of its profits, if any, or other income is utilized for the purpose of promoting the objectives. It functions similarly like a limited company which includes all the rights and obligations that come with such a corporation. It is vital to mention that it differs from a corporation in one very crucial aspect, that it cannot use the words “Section 8” or “Limited” in its name.

These are limited corporations which are registered under the Companies Act and would be treated as limited companies without the phrase “limited” added towards their name. They might have been registered as private limited or public limited companies.

Section 8 Companies are a lawful form for Non-Profit Organizations (NPOs) or Non-Governmental organizations (NGOs). A Section 8 Company has the right to work anyplace in the nation.