Section 8 Company is referred to a corporation that aims to motivate arts, sciences, sports, education, environment preservation, social welfare, charity, religion, or other similar objectives. The income of a corporation is for the promotion of charitable objectives and cannot be used for paying out dividends to the company’s members. Such corporations acquire an incorporation certificate from the central government and are liable to adhere to the rules specified by the government.

To register a Section 8 company, at least two directors are needed. Also, to set up such companies there is no compulsion of securing minimum paid-up capital.