- Promotion of charitable objects
Section 8 companies are registered only for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object. Therefore, their primary purpose is to carry on charitable and social welfare activities.
- Name of Section 8 Company
The name of Section 8 company shall have the suffix such as Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral trust, etc. It is not allowed to have suffix as “Private Limited Company” or “Limited Company”
- License by Central Government
Section 8 Company are issued a separate license by the central government to carry on the business of promotion of religious or charitable objects across all over the country. This is in addition to the certificate of incorporation which is issued to all the registered companies. A copy of the license provides the detailed terms and conditions of such a license.
Section 8 Company has to apply its income, surplus, profits, or any other income in promotion of religious, charitable, or any other welfare activities. The owners or members are not allowed to withdraw their profits as dividend, bonus, or any other manner.