1 / 9

Section 8 Company Registration Key Insights for NGOs and Non-Profits

Understanding the legal framework is crucial for any organization, whether it's a Section 8 Company, a trust, or a proprietorship firm. Section 8 Companies are governed by the Companies Act, ensuring stricter regulation and greater transparency compared to Trusts and Societies, which are regulated by state laws. Similarly, proprietorship firm registration follows a specific legal framework tailored to individual business needs. Moreover, Section 8 Companies generally enjoy more tax benefits, making them a preferred choice among donors for non-profit initiatives.

Corpbizlegal
Download Presentation

Section 8 Company Registration Key Insights for NGOs and Non-Profits

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Section 8 Company Registration Key Insights for NGOs and Non-Profits

  2. Introduction What is a Section 8 Company? A Section 8 Company is a non-profit organization registered under the Companies Act, 2013 in India. The process of Section 8 Company registration online has made it easier to establish such organizations, which are aimed at promoting commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection.

  3. Benefits of Section 8 Company • Legal Status: Separate legal entity distinct from its members. • Tax Benefits: Eligible for various tax exemptions under the Income Tax Act. • Credibility: Higher credibility due to strict compliance and reporting requirements. • Limited Liability: The liability of members is limited to their share in the company.

  4. Eligibility Criteria • Purpose: Must have a charitable or non-profit objective. • Profit Distribution: Profits or income cannot be distributed among members. • Minimum Requirements: • Minimum of 2Directors for a Private Limited Company. • Minimum of 3 Directors for a Public Limited Company. • No minimum capital requirement.

  5. Compliance Requirements • Annual Filing: File annual returns with the Registrar of Companies. • Financial Statements: Maintain proper books of accounts and file financial statements. • Audits: Mandatory audit of accounts by a qualified auditor. • Tax Compliance: Ensure timely tax filings and compliance with tax exemption requirements.

  6. Common Challenges • Stringent Compliance: High level of regulatory compliance compared to other forms of NGOs. • Taxation Issues: Understanding and applying for the appropriate tax exemptions. • Funding Constraints: Difficulty in raising funds due to non-profit nature.

  7. Key Differences: Section 8 Company vs. Trusts and Societies • Legal Framework: Section 8 Companies are governed by the Companies Act, while Trusts and Societies are governed by state laws, similar to proprietorship firm registration, which also follows specific legal frameworks depending on the business structure. • Regulation: Section 8 Companies are more strictly regulated by the ROC and have greater transparency. • Tax Benefits: Section 8 Companies typically enjoy more tax benefits and are often preferred by donors.

  8. Conclusion • Summary of Key Points: • Importance of Section 8 Company registration for NGOs and non-profits. • Benefits, process, and compliance requirements. • Comparison with other non-profit structures. • Call to Action: • Consider registering your NGO as a Section 8 Company for enhanced credibility and tax benefits. • Seek professional guidance to navigate the registration and compliance process.

  9. Website www.corpbiz.io Mobile 9121230280 Email info@corpbiz.io

More Related