A Section 8 Company is a type of non-profit organization that aims to promote charitable activities, art, science, education, sports, and other similar activities. The profits of such companies are utilized for promoting these activities and are not distributed as dividends to shareholders. Section 8 companies are recognized under the Companies Act, 2013 in India and are subject to strict legal compliance frameworks, enhancing their credibility regarding legal standing. Some key features of Section 8 companies are:

• They are free to choose a name that suits their liking during the registration process and are not required to affix the term "Section 8" after their name.
• They are subject to stringent compliances post-registration, making them more trustworthy than NGOs and trusts.
• They can dissolve themselves voluntarily or on the Central Government’s directives.
• They can invest in securities of any body corporate, furnish loans, guarantees, or furnish security associated with the loan or procure through the method of subscription, purchase, etc. the securities of the company but the same must comply within section 180, 185, Section 186, and other sections, whatsoever relevant, of the Companies Act, 2013.

In summary, a Section 8 Company is a non-profit organization that aims to promote charitable activities and other similar activities. They are recognized under the Companies Act, 2013 in India and are subject to strict legal compliance frameworks.