A Section 8 Company is a type of not-for-profit organization established under Section 8 of the Companies Act, 2013 in India. These companies are formed to promote charitable objectives, such as education, art, science, sports, research, social welfare, religion, or environmental protection. NGO stands for non-governmental organization, which is an independent, usually nonprofit organization that operates outside of government control. NGOs can focus on a variety of issues, including social issues, humanitarian causes, and services for members. Despite being non-profit, they enjoy the same privileges as other companies under the Act.

Objective: Promotes charitable, social, or non-profit goals. Any income or profits earned are reinvested in the objectives of the company and cannot be distributed as dividends.

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Legal Structure: Treated as a corporate entity. Governed by the Ministry of Corporate Affairs (MCA).

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Formation: Requires approval from the Registrar of Companies (RoC). Founders must provide a detailed memorandum outlining the company's objectives.

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Structure: Can be formed as a private limited or public limited company. Requires a minimum of 2 directors for a private company and 3 directors for a public company.

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Limited Liability: Members liability is limited to their shareholding or guarantee amount.

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Tax Benefits: Eligible for exemptions under sections like Section 80G and 12A of the Income Tax Act, subject to registration. Donations made to a Section 8 company may qualify for tax benefits to donors.

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No Minimum Capital: There is no requirement for minimum paid-up capital.

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Recognition and Credibility: Being a registered legal entity, it enjoys greater trust among donors and funding organizations.

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Exemptions: Enjoys certain exemptions under the Companies Act, like reduced compliance requirements for conducting board meetings.