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In recent times Cloudflare converted into a non-profitable organization even though it has lots of paid and unpaid services, but it was located outside India but provides service in India.

Cloudflare works in partnership with the nonprofit organization Defending Digital Campaigns to qualify candidates who meet the FEC's criteria. Cloudflare is also proud to provide many campaigns — local, federal, and international — a wide range of services at costs that fit within most budgets.

My Juriprejiduce is India / WestBengal now the problem I opened an MSME PLC company a few years back it does some software reselling now if I want to convert it into a section 8 company eg. NGO will it been illegal?

NOW: this company is working as a software reseller and is willing to continue its reselling in the same manner, it was incorporated with a profitable objective but It seems to be in NGO/non-profitable manner as it divides out gains with the employee's salaries and gains among the employees.

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    "Cloudflare converted into a non-profitable organization", I don't know if it it the case in India (that would be so weird), but Cloudflare is definitely not a nonprotfit especially as a public company Apr 27 at 14:48
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    This isn’t a non-profit business. Profits are being distributed, that makes it a for-profit business irrespective of who they are being distributed to. A not-for-profit must keep all surpluses (profits) and use it for its charitable purpose.
    – Dale M
    Apr 27 at 22:05
  • @DaleM then how did Cloudflare convert it to a non-profit business? they look completely into the profitable perspective. another thing is that first, we need to pay employees then the NGO needs to go to charity ie. the way profit must be shared. Another thing is that the NGO's employees will not be working for the owner's profit too. so in that sense, if NGO is dividing all the profit (if any) dividing into employees still it will be non-profit business too.
    – CADENTIC
    Apr 28 at 3:36
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    First, Cloudflare is NOT a not for profit - it is a for profit public company returning profits to its owners. Second, non profits are allowed to run businesses providing their profit is applied to a charitable purpose - giving it to employees isn’t a charitable purpose.
    – Dale M
    Apr 28 at 21:56
  • @DaleM thanks it's answered my questions. it is solved now.
    – CADENTIC
    Apr 29 at 0:51

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