Section 8 company Registration

CHANDIGARH, India - Oct. 3, 2026 - PRLog -- What is a Section 8 Company?

A company registered under companies act 2013 or previous applicable act and has in objects to,

• Promote Sports commerce, art, science,  education, research, social welfare, religion, charity, protection of environment or any such other object;

And intends to apply its profits, if any, or other income in promoting its objective, intends to prohibit the payment of any dividend to its members is called section 8 companies under companies act 2013.

The license may be issued by central government such manner as may be prescribed, and on such conditions as it deems fit, approve that association of persons or person to be registered as a company under this section without the addition to its name of the word "Private Limited", or as the case may be, the words "Limited", and On application, in the prescribed form, Registrar may register such person or association of persons as a company under this section.

Section 8 Company is also a company that is registered for charitable or non-profit purposes. However, this Company is similar to a Trust or Society; an exception is that a Section 8 Company (https://www.corpzo.com/annual-general-meeting-section-96-...) is registered under the "Ministry of Corporate Affairs (MCA)" of the Central Government while the Societies and Trusts are registered under the regulations of the State Government. However, this has numerous advantages as compared to Trust or Society and also has better credibility among donors, departments of government, and other stakeholders. Further, the key feature of this Company is that it is possible to incorporate the company name without using the word "Limited" or "Private Limited" as the case may be.

Benefits of a Section 8 Company

Distinct Identity

An entity means something that has a true existence; an object with a distinct existence. A company is a legal entity and a legal entity established under the Law. Hence a company is a form of the organization having broad legal potential and that may own property and also incur debts in its own name. The members of the company have no liability towards company debts because the company and members both are the separate people in the eye of the law, hence company is an artificial person having a separate legal identity.

Liability is Limited

Limited Liability means the status of being legally responsible for a company's debts only to a limited sum. Like proprietorships and partnerships, the Member's responsibility for the company's debts is limited in a limited liability company. In other words, the responsibility of a company's members is limited only to the sum of the face value of the shares they take over