Section 8 companies are created to promote activities like arts, business, science, sports, education, research, social welfare, religion, charity, and environmental protection. They are registered as Non-Governmental Organizations (NGOs) under the Companies Act 2013.

These companies cannot share profits with their partners from their charitable work. Instead, any money they make must be used to support their charitable activities. Section 8 companies must follow the rules in the Companies Act, 2013, and it’s important for them to comply with these regulations. If they fail to do so, they could face penalties from the government.