Section 8 Charitable Company Registration in India
Online Charitable Trust Registration in India via Tax Robo. Section 8 Company Registration with TAX ROBO Easy. Know the process of doing an NGO Registration in India and get yours today.
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Incorporation of Section 8 Company
A Section 8 Company, governed by the Companies Act, 2013, is a legal entity formed with the primary objective of promoting charitable activities, social welfare, education, healthcare, art, science, sports, research, environment conservation, and other nonprofit purposes. It operates on a not-for-profit basis, and any income generated must be utilized solely for furthering its objectives.
Charitable Trust in India
It is possible to register a charitable trust in India under the Societies Registration Act, of 1860. Section 8 of the Companies Act, 2013 & Public Trust Act of various States in India.
Apart from the above legislation, the Income Tax Act, of 1961 also applies to charitable organizations.
Requirements:
- Minimum Members: At least two individuals or entities are required to incorporate a Section 8 Company.
- Minimum Directors: The company must have a minimum of two directors, who must be individuals.
- License: Obtain a license from the Central Government (Regional Director) by filing Form INC-12, demonstrating the company's commitment to nonprofit activities.
- Memorandum and Articles: Prepare Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives, rules, and regulations.
- Compliance: Ensure compliance with various legal and regulatory requirements under the Companies Act, including filing of annual financial statements, holding annual general meetings, and maintaining proper accounting records.
Important Legal Registration Required for Pvt Ltd Company
GST Registration for Section 8 Company
FSSAI Registration for Section 8 Company
PF & ESI Registration for Section 8 Company
Advantages of charitable trust registration
Charitable trusts get exemption from payment of Taxes.
Companies formed under Section 8 of the Companies Act, 2013 receive benefits such as exemption from various procedural provisions of the Companies Act, either fully or partially.
They are also entitled to exemptions that the Central Government may grant through its orders.
Donors to charitable trusts can deduct the amount of donation to the trust from their Taxable Income.
Limited Liability: Members of a Section 8 Company enjoy limited liability protection, shielding their personal assets from the liabilities of the organization.
Tax Exemptions: Section 8 Companies are eligible for tax exemptions under various provisions of the Income Tax Act, including Sections 11, 12A, and 80G.
Enhanced Credibility: Registration as a Section 8 Company enhances credibility and trust among donors, beneficiaries, and stakeholders.
Perpetual Succession: The company enjoys perpetual succession, ensuring continuity of operations even in the event of changes in membership or leadership.
How to set up a charitable trust in India?
The following steps must be undertaken to register a charitable trust in India.
To form a charitable trust, the founder, also known as the author of the trust, must create a legal document stating objectives and functioning of the trust along with the responsibilities of trustees.
This document is also known as "Trust Deed".
An application must be submitted before the Registrar of the trust along with the trust deed.
The presence of two witnesses for signatures during registration is mandatory.
Once the application is submitted to the authorities, they examine it and if everything is correct, they register the Charitable trust officially and issue a "Trust Registration Certificate".
After a trust has been enforced, it must make sure to do the following :
Get PAN Card
Manage Books and accounts.
File Annual Income Tax.
In cases where Trust may need employees for carrying out various functions, a Shops & Establishment License.
Purpose of NGO:
NGOs, including Section 8 Companies, play a pivotal role in addressing social issues, promoting sustainable development, empowering marginalized communities, and contributing to the overall welfare of society through charitable activities and philanthropic initiatives.
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Charitable Trust Registration Packages
Basic Package
₹27499 .00
* All Exclusive
- Deed Drafting
- Digital Signature Certificate 2 Years Validity (2 Persons)
- Name Approval
- PAN & TAN
- GST Registration
- Incorporation Certificate
- Share Certificate
- Appoint First Auditor of the Company
-
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Family Auditor
₹35999 .00
* All Exclusive
-
Deed Drafting
- Digital Signature Certificate 2 Years Validity (2 Persons)
- Name Approval
- PAN & TAN
- GST Registration
- PF & ESI Registration
- Incorporation Certificate
- Share Certificate
- Appoint First Auditor of the Company
- Free Bank Account Opening
-
Statutory Registers and Records
- Free Experts Consulting
-
Free 3 Months "Accounts Robo" ERP Software.
Section 8 Company Registration Process Online in India - Simple Steps
Step 1
Obtain DSC for Partners and Apply Name Approval
Step 2
Incorporation Of Documents (Draft Sent To You For Confirmation)
Step 3
File Spice + Forms
Step 4
Get Incorporation Certificate, Pan, TAN & Bank Accounts
Procedures for Section 8 Company Registration
- For all the proposed directors of the company, DCSs and DINs are needed to make
- Getting approval of the name and reservation of the company through form INC-1
- Drafting MOA and AOA of the company
- For issuing the license INC-12 form needs to be filed under section 8
- Submission of forms, and other essential documents, like the power of attorney, Affidavits, etc.
- Through form INC-7, the application for registration of the company needs to be filed
- Receiving Incorporation certificate along with CIN (Company Identification Number
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Documents Required For Incorporation Of A Section 8 Charitable Company
ID Proof
Scanned copy of PAN Card, Voter ID, Passport , Driving License
Registered Office Proof
No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property) / Registry Proof or House Tax Receipt (in case of owned property)
Address Proof
Latest Bank statement/ Utility bill in the name of director which should not be older than two months
Photo
Latest passport size photograph
Compliance After Incorporation Of Section 8 Charitable Company
Statutory Obligations
✓ File GST return every month without delay
✓ PF & ESI return filing
✓ TDS Payments & Return filings
✓ Advance Tax payments
✓ File Income Tax return by every year before due date
Compliances
✓ GST registration
✓ PF & ESI Registration if applicable
✓ Profession Tax registration
✓ Import & Export Code registration
✓ STPI Registration / SEZ registration
✓ Secretarial compliance required for passing resolutions, Change in Management, entering contracts, loan obligations etc
Accounts & Operations
✓ Open a Bank account with one Private Bank and one scheduled Bank
✓ Get one accounting software with GST facility
Performance
✓ Review Financial Products performance by every 3 months
✓ Compare the budget amount with actual Financial Products results