Section 8 Rental Listings –Venture Care|NGO Formation Services

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• As one of the largest markets in the world, India
  has a vast trade and commercial domain. However
  making profitts through trade and commerce is not
  the only factor which is prominent in the Indian
  market. India as a huge country lacks behind in
  sectors like education, employment, health care,
  food, and safety, etc. Our government is under a
  lot of pressure to ameliorate the conditions
  within the national legislation. The central
  government cannot address each and every issue
  simultaneously and this creates a space for
  specific organizations which assist the
  government working for the well-being of society.
  Such organizations are known as Non-profit
  organizations or non- government organizations.
• A Non-profit organization can be registered as a
  Company under Section 8 of the Companies Act,
  2013.It can also be registered as Trust or a
  Society. Section 8 company can be incorporated
  for promotion of commerce, art, science, sports,
  education, research, social welfare, religion,
  charity, protection of environment or any such
  other object, provided it intends to apply its
  profits, if any, or other income in promoting its
  objects and intends to prohibit the payment of
  any dividend to its members.
• PROS OF SECTION 8 COMPANY
• NO MINIMUM PAID UP CAPITAL REQUIREMENT As per
  Companies Act, 2013 unlike private and public
  limited companies, Section 8 Company do not
  require any minimum capital contribution for
  incorporation. They can commence there business
  without any share capital. The fund required for
  business can be brought in the form of donation
  and subscription from public and members of the
  Company.
• TAX DEDUCTION Since Section 8 Companies are
  non-profit making companies they are exempted
  from certain income tax provisions. They are also
  given numerous deductions and benefits.
  Individual Donating Money in Section 8 companies
  also avail the benefits of deduction under
  Section 80G of income Tax Act, 1961.
• NO NEED TO USE TITLE Unlike Private Limited
  company which uses Private Limited as title
  after its name, Section 8 Company is not required
  to add any sufix or title to its name.
• 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.
• 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.
• POINT TO BE KEPT IN MIND BEFORE REGISTERING
  SECTION 8 COMPANIES
• Decide regarding the proposed name to be applied,
  objects to be carried by the Company,
  authorized capital.
• Name of Section 8 Company shall include the words
  Foundation, Forum, Association, Federation,
  Chambers, Confederation, Council, Electoral trust
  and the like words.

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• It should intend to apply its profits, if any or
  other income in promoting its objects.
• It should intend to prohibit the payment of
  dividend to its members.
• A partnership firm is allowed to be a member of
  the Section 8 Company
• MINIMUM REQUIREMENTS FOR SECTION-8 COMPANY
• At least two shareholders
• Minimum two directors
• Shareholders and Directors could be same.
• At least one Director should be Indian resident
• There is no minimum capital required.
• Registered Office Address Proof (Rent agreement
  if the premises is not owned by the company)

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3. Dully fill and sign DSC application form.

• Requirement to Apply for DIN (Minimum Two
  Directors are required)
• Photograph of the Applicant To be
  Self-attested.
• PAN To be Self-attested
• Mobile No.
• Email id.
• Educational Qualification
• Occupation
• Proof of residence of applicant
• Address proofs like passport, election (voter
  identity) card, ration card, driving licence,
  electricity bill, telephone bill or bank account
  statement shall be attached and should be in the
  name of applicant ( shall not be later than 2
  months).
• DSC of Individual.

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• Estimated statement of Income Expenditure for
  Next three years and it should be signed the
  proposed Promoters.
• Estimated Balance Sheet for Next three years and
  it should be signed the proposed Promoters.
• List of proposed Promoters and Directors of the
  Company
• Statement of ground on which application is made.
• Requirement to Apply for Incorporation of Section
  8Company
• Registered office address of Company.
• Recent Address proof with NOC from Owner.
• TIME PERIOD
• Time Required for Incorporation of Section 8
  Company Shall be 30-60 days, depending on
  government approval.

REGISTRATION OF COMPANY UNDER SECTION 12A AND 80G
OF INCOME TAX ACT. Income of an organization is
exempted if NGO has 12-A registration. This is
one time registration. If an organization has
obtained certification under section 80-G of
Income Tax Act then donors of that NGO can claim
exemption from Income Tax. Application for
registration under section 12A and 80G can be
applied just after registration of the NGO.It
can be applied to the Commissioner of Income Tax
(Exemption) having jurisdiction over the
institution. Both applications can be applied
together or it can be also applied separately. If
some organization is willing to apply both
applications separately, then application for
registration u/s 12A will be applied first.
Getting 12A registration must for applying
application for registration u/s 80G of Income
Tax Act.
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