A Section 8 Company, also known as a Non-Governmental Organization (NGO), is a not-for-profit entity
established under the Indian Companies Act, 2013, with the objective of promoting charitable, social,
cultural, educational, or religious causes. Unlike traditional businesses, Section 8 companies are not
set up to generate profits for shareholders or members; instead, any profits generated are reinvested
into the organization's activities to further its charitable goals. This structure provides NGOs with
the ability to operate with greater transparency and legal recognition compared to other informal
nonprofit organizations. The key advantage of registering as a Section 8 company is that it allows the
organization to operate under a formal, structured legal framework, which can enhance credibility and
trust among donors, government bodies, and the public. Additionally, Section 8 companies enjoy several
benefits such as tax exemptions under Section 12A and 80G of the Income Tax Act, making them eligible
for various grants and financial support. The registration process for a Section 8 company involves the
submission of documents outlining the company's objectives, and it is subject to the approval of the
Ministry of Corporate Affairs (MCA). This structure is ideal for individuals or groups looking to
establish a professional and impactful charitable organization that is legally compliant and recognized
for its contributions to society.