SECTION 8 COMPANY
When a Non Profit Organization or NGO wants to register as a company under the companies act 2013 it is called a Section 8 company. A section 8 company registration is done for special purposes like the promotion of education, social welfare, culture, fine arts, commerce, sports, literature or similar purposes. The main motive behind formation of these companies is to carry out non profit activities and promotion of charitable work. For these purposes first an NGO is registered, then a separate and exclusive license is granted to these NGOs to register them as section 8 companies by the government. Section 8 company registration comes under the Ministry of Corporate Affairs A Section 8 Company is a type of corporation established to promote non-profit activities, such as education, social welfare, environment preservation, arts, sports, charity, and more. This follows the provisions of the Companies Act 2013