Trusts & Societies
What is NGO registration?
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.
If you are willing to establish a non-profit organization for the working with an objective of betterment or advancement of any particular section of the society it is recommended to first get NGO Registration done. As it provides a legal entity to the organization which makes it more credible in the eyes of law and contributors.
What is the purpose of NGO registration?
What distinguishes a non-government organization from any other organization is the objective with which it is established. The main objective of every organization is that profit making as it ensures smooth functioning and future growth. However, it is done with only one objective i.e. to help others. The sector it works in might differ but the ultimate objective and inherent desire of supporting the under privileged, social welfare is always there and works as a driving force. This can be done through many ways like education, trade, art, skill development, cultural promotion etc.
Non-profit organisations can be set up in three different forms:
What is Society Registration?
An entity or group of people working together not for profits but for the welfare of the general public with an agenda of helping the community has an option of Society registration to gain a legal status. A non-commercial organization with seven or more persons coming together for any scientific, literary or charitable purposes or for purposes as mentioned under section 20 of the Society Registration Act, 1860, may get Society Registration by subscribing their names to a Memorandum of Association and filing the same with the registrar.
What is the purpose of Society Registration?
The main purpose of society registration is to give legal status to the societies in India and to improve the overall legal conditions of societies. Henceforth the Society Registration Act, 1860 is very important. Society registration is governed by this act. For the wellbeing of society in the country, a registered society performs a very significant rule.
Who can set up Section 8 Company?
1. The companies with the objective of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other objective
2. Intends to apply its profits, if any, or other income in promoting its objectives; and
3. Intends to prohibit the payment of any dividend to its members; can be registered as Section 8 Company.
What registrations are required under Income Tax Act?
Charitable Trusts including Section 8 companies are eligible for tax exemption u/s 11, 12, 12A, 12AA, 13 and 80G of the Income Tax Act. The expression “charitable purpose” has been defined under
Section 2(15) of the Act to include:
a) relief of the poor
b) education
c) medical relief
d) advancement of any other object of general public utility.
Benefits
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Tax Exemption:
Numerous Tax exemptions are provided to Section 8 Companies, specifically to the donors who are contributing to Section 8 Companies, they can claim the Tax exemption against the donation they made to a Section 8 company.
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No minimum capital requirement:
There is no prescribed limit over section 8 companies for the minimum capital requirement unlike other entities such as public limited, but the capital structure can be altered at any stage as the required for the growth of the company.
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No stamp duty payable:
A section 8 Company is exempted for the payment of stamp duty applicable for registration as applicable in case of other structures such as private limited or a public limited company.
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Separate Legal entity:
A Section 8 Company also holds its own identity like other companies structures, and has its own separate legal standing from its member. A Section 8 Company also has a perpetual existence.
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Credible:
A Section 8 Company has more credibility as compared to any other Non-profit organization structure be it a Trust or Society. As it is a licensed by the central government. It has more stringent regulations such as no change in MOA and AOA can be done at any stage or situation in a Section 8 Company. A section 8 company due its strict compliances as regard to functioning has a more reliable image in comparison to other legal structures.
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No title required:
Unlike the names requirements of the private limited or a public limited company, a section 8 company does not require to use a suffix next to its name.
Documents required for Society Registration
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A cover letter with a request of society registration under the law.
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A Memorandum of Association
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Copy of Rules and Regulation of the Society
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List of all members of the Society
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Affidavits of the office bearers
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Residential proof of all the members
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Proof of address of the registered address, or NOC from the Landlord