Non Profit Organisation
Non Profit Organisation (NPO) can register themselves in corporate form under section 8 of Companies Act. NPO are formed to work for social cause without intention to make any profits. NPO can avail tax benefits by registering under section 80G and section 12AB of Income Tax Act.
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Non Profit Organisation are such type of organisation set-up to provide goods or services with the intention of not making any profits. No member of the Non Profit Organisation shall entitled for any profit. The guideline of management of non profit organisation contains in its charter / Memorandum of Association / Articles of Association or any other executed legal document based upon the nature and type of Non Profit Registration.
There are various ways of registering a Non Profit Organisation, these are to for m a Trust, Society or register a Section 8 company. The most common and easy to manage and operate a Non Profit Organisation is to incorporate Section 8 Companies, however it depends upon the size and nature of the organisation, the organisation may register for Trust or Society.
There are numerous organisations / entities which work for social cause without intention to make profits. Irrespective of registration type the organisation chooses, its main and incidental objective is to provide goods and services with the intention of not making any profits.
NPO intention of not making making profits, so their main source of funding or the manner in which NPOs can raise money are donation from individual donors, donation from other foundations, sponsorship from corporations, funding provided by Government bodies, service or merchandise sales and income from investments. NPOs may also be formed for collecting income to dispense to other qualifying charities.
NPO in India have option to register themselves in any of the form of Trusts or society or Section 8 Company registration. Most commonly followed is Section 8 company registration as it provide corporate structure to the NPOs.
Non Profit Organisation are prohibited to pay any dividend to its members or distribute any profit to its members. There are numerous tax exemption benefits available to Non Profit Organisation like 12A registration. This section 12A is governed by Income Tax Act and the holder of this 12A registration is exempt from paying any taxes subject to fulfilment of conditions enumerated in this section. 80G certificate can also be applied by a Non Profit Organisation if such organisation also accepts grant. This section 80G is governed by Income Tax Act, this 80G certificate entitled to claim deduction by the donor making donations to Non Profit Organisation.
We at ReturnFilings.Com will understand the purpose of your proposed set-up of Non Profit Organisation and thereafter will provide you analysis of registering in various categories as compared to other form of business i.e. trust or society or Section 8 companies covering almost all scenarios to carry out your activities effectively and efficiently. Based upon the Registration Certificate we need obtain a PAN (Permanent Account Number) in the name of registered entity to carry out the business. We at ReturnFilings.Com will apply for PAN on behalf of your Registered entity and thereafter provide registration under other regulatory requirement based upon the need of such registration i.e. GST, TAN, Import Export Code etc.
Apart from above, even after obtaining registration under various laws, we at ReturnFilings.Com also fulfil various compliance on your behalf in order to ensure proper and smooth functioning of business and to avoid unnecessary interest or penalty for non-compliance. We at ReturnFilings.Com are determinate to provide end to end solution, our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.