A Section 8 Company, formerly known as a Section 25 Company under the Companies Act, 1956, is a non-profit organization registered under the Indian Companies Act, 2013. It is primarily formed for promoting arts, commerce, science, sports, education, research, social welfare, religion, charity, or any other useful object, and its profits, if any, are utilized solely for promoting its objectives. Unlike other companies, a Section 8 Company enjoys certain exemptions and privileges, making it a preferred legal structure for NGOs and charitable organizations.
Registering a Section 8 Company is an effective way to formalize a nonprofit organization dedicated to social, educational, or charitable causes. It provides a legal framework that enhances credibility, operational efficiency, and access to funding, ultimately aiding NGOs in achieving their mission with legitimacy and transparency.