Introduction:

Section 8 of the Companies Act, 2013 regulates the formation and functioning of companies with charitable objectives or those promoting other specified purposes such as commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any similar objectives.

Here's a detailed description of the key aspects regulated by Section 8:

1. Formation of Companies: Section 8 allows for the incorporation of companies with charitable or other specified objectives. These companies can be registered without the requirement to add the words "Limited" or "Private Limited" to their name.

2. Prohibition on Profit Distribution: Section 8 companies are prohibited from distributing any dividends or profits among their members. Instead, any income generated by the company must be utilized solely for the promotion of its objectives.

3. Approval Requirement: Prior approval from the Central Government is necessary for the incorporation of Section 8 companies. The application for incorporation must include a declaration confirming the company's objectives and its commitment to utilizing its income for the promotion of those objectives.

4. Alteration of Memorandum and Articles: Any alteration of the Memorandum and Articles of Association of a Section 8 company requires approval from the Central Government.

5. Tax Exemptions: Section 8 companies may be eligible for certain tax exemptions under the Income Tax Act, 1961, subject to compliance with relevant provisions.

6. Conversion: Section 8 companies have the flexibility to convert into any other type of company under the provisions of the Companies Act, 2013, provided they adhere to the necessary procedures.

Overall, Section 8 of the Companies Act, 2013 aims to facilitate the establishment and operation of companies dedicated to charitable or socially beneficial purposes, while ensuring transparency, accountability, and proper utilization of resources toward their objectives.