Section 8 Company is a non-profit organization which has various deductions on taxes and other benefits. Stamp duty is also less for these companies as compared to other organizations. company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports, research, etc.

Main features of section “8” Company:

• Charitable Objects: A section 8 Company has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other charitable objects.
• Profit for Promotion of objects: Section 8 company will apply its profits (if any) in promoting its objects.
• No Dividends: Section 8 Companies are prohibited to declare and/or pay any dividend to its members.