A non-governmental organization (NGO) usually termed as non-profit Organisation usually deliver resources or serve some social or political purpose. NGOs or Non-profit Organisation are primarily concerned with promoting a cause and engaged in a wide range of activities. Non-profit Organisation or charitable institution in India can be registered in three ways i.e., either it can be registered as Trust, or Society or a Section 8 Company. According to The Companies Act,2013 Section 8 Company can be incorporated to promote Art, Science, and Commerce, education, Sports, Social Welfare, Research, Charity, Religion, Environment and similar objects. These companies are not seen doing activities of manufacturing, but are mere service providers, they solely works for the betterment of the general public.
Tax deduction under Income Tax Act and no stamp duty on registration are some of the benefits given to Section 8 Company. Income of such companies is also exempted if it is registered under 12-A of Income Tax Act. Registering under section 80G of Income tax, the donor to the company gets deduction about 50% from their taxable income and some qualify at the rate of 100%. To avail all the benefits, registration and obtaining license is a must. Central Government issue license to Section 8 Company upon submission of certain documents. After obtaining license, it can be used to avail many benefits.
Section 8 Companies are more reliable to general public also due to their easy management, registration under Registrar of companies and effective objectives.
Our team of highly qualified professionals at Ask4compliance.com can help you to establish a Section-8 Company to start your social work as a corporate entity and to avail host of benefits.
(a) At least one of the directors shall be resident in India, i.e. who has stayed in India for a total period of not less than 182 days in the previous financial year.
(b) Directors and shareholders can be same person.
(c) Estimate of the future annual income and expenditure of the company for next three years.