Company Formation
Section 8 Company (Non Profit)

In India, one can establish a a non-profit organisation mainly in the form of -

 1) Trust by executing a Trust deed or

2) as a Society under the Registrar of Societies, or

3) as a private limited non profit company under Section 8 Company under the Companies Act, 2013.

A Section 8 Company is the same as the popular Section 25 company under the old Companies Act, 1956, which was one of the most popular forms of Non- Profit Organisations in India. But, as per the new Companies Act 2013, Section 25 (as per the old act) has now become Section 8.

As per Section 8(1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 company can be established for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”.