Glossary
Section 8 company
A non-profit company registered under the Companies Act, 2013 — the modern legal form for a professionally-run NGO.
A Section 8 company is a not-for-profit company incorporated under Section 8 of the Companies Act, 2013, whose profits (if any) must be applied to promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or protection of the environment — and cannot be distributed to members as dividend.
Compared with the older forms — public charitable trust and registered society — a Section 8 company offers stronger governance (a board of directors under the Companies Act), simpler compliance across state lines (one Registrar of Companies instead of state-by-state Registrars of Societies), and better standing with corporate CSR funders who prefer to transact with a body they already understand.
A Section 8 company still needs 12A, 80G, and, if it will receive foreign contributions, FCRA — the legal form doesn't grant any of those.