A non-profit making company (NPO/NGO) termed as section 8 company as per companies act 2013,can be formed for promotion of any useful object like sports, education, research activities etc. The term No Profit does not mean that the Company cannot generate profit or income, but it essentially means applying the income for further promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefited out of those profits.
According to section 8 of companies act 2013, section 8 company means a Non-profit making Company which Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any other useful object, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
In former Companies Act, 1956 it was regulated by Section 25 and that is why it was popular as Section 25 Company. However in Companies Act 2013 provisions related to non-profit making company are given in Section 8 that is why it is known as Section 8 Company.We believe in giving hindrance free services to our customers.