Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
Key Features of Section8 Company
- No Paid Up Capital.
- Tax Deduction.
- Exemptions Under Company Law.
About Section8 Company
Section 8 Company is also termed as the Non-Profit organization(NPO) which is established to promote art, science, commerce, religion, charity or any other advantageous object, provided the profits if any. Other revenue is utilized for supporting & promoting of objectives of the company and its members fund no benefit.
The main objectives of Section 8 Company must ensure that it is related apply its profits(if any) in promoting and supporting the objectives. It should not provide any benefit/fund to its members. The objects to be promoted includes;
- Social Welfare
- Protection of Environment