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ARTICLE · 30 OCTOBER 2025

Section 8 Companies vs Trusts

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Section 8 companies were introduced under the Companies Act 1913. They permitted companies with charitable objects etc. to be registered without the words ‘Limited' or ‘Private Limited'. Section 8 continues...

IndiaCorporate/Commercial Law
Aarna Law
Aarna Law

Introduction

Section 8 companies were introduced under the Companies Act 1913. They permitted companies with charitable objects etc. to be registered without the words 'Limited' or 'Private Limited'. Section 8 continues to provide for restrictions on application of profits and permits the same only for the purpose for which the company is promoted. It prohibits declaration of dividend, continues to permit partnership firms to be a member of Section 8 companies etc. Companies Act, 2013 elaborates on the objects for such companies and specifies objects like sports, education, research, social welfare and protection of environment for which the companies can be formed under this section.

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