Section 8 Company is registered with Central Government's Ministry of Corporate Affairs under the Companies Act, 2013. Section 8 Company is recognized all over the world.
Section 8 Company or a Non-Profit organization (NPO) is a company established for promoting commerce, art, science, religion, charity or any other useful object and it is easy to register, run or manage.
Section 8 company is exempted from minimum capital requirement, stamp duty and even Companies Auditing Report Order (CARO) 2003 does not apply on it.
The director and share holders can be same person.
Section 8 company cannot generate profit or income, but it essentially means applying the income for further promotion of the object and not for distributing it to the promoters. It means that the company can earn profits but the promoters cannot be benefited out of those profits.