A Non Profit Organization in India, registered under Companies Act 2013, as Section 8 Company with a non-profit motive. Objective of Section 8 Companies are promotion of arts, commerce, charity, education, protection of environment, science, social welfare, sports, research, religion and intends to apply its profits, if any, or other income in promoting its objects. It functions exactly like a limited company including all the rights and obligations that come with such a company. However, it differs from a company in one very crucial aspect, i.e. it cannot use the words “Section 8” or “Limited” in its name. Section 8 Company is most popular form of NGO in India. It is easy to register, run or manage. The income of the Section 8 Company must be used to promote only charitable objects and cannot pay any dividend to the members of the company.
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