A Section 8 Company is designed for non-profit purposes and operates intending to promote fields such as arts, commerce, education, charity, and environmental protection. Key aspects include:
Non-Profit Nature: Profits or income are applied solely towards promoting the company's objectives, without distribution to members.
Formation Requirements: Requires a minimum of two members and two directors for incorporation.
Tax Benefits: Eligible for various tax exemptions under the Income Tax Act.
Governance: Managed by a Board of Directors, similar to other companies, but must adhere to stricter compliance for maintaining non-profit status.
https://www.registerkaro.in/types-of-companies