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The primary objective of Society is not to generate a profit. Its goals include promoting the arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental protection, among others. By drafting a memorandum of association, seven or more people associated with any literary, scientific, or charitable purpose may form a society.The Registrar of Societies must receive the articles of incorporation. The memorandum must be properly signed by all of the organization’s members and include the name of the organisation, its objectives, as well as the addresses, names, and occupations of the members of the governing body, by whatever name it may be known. In addition to the memorandum of association, a copy of the Society’s rules and regulations must also be filed. The Prevention of Names and Emblems Act should be consulted prior to selecting a Society Name. The District Society Register governs Society Registration.
Who may register a Society:
Any seven or more individuals who wish to register an NGO to promote the arts, commerce, science, research, education, sports, charity, social welfare, religion, or environmental protection.
The primary objective of a Trust is not to generate a profit. Its goals include promoting the arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental protection, among others. By using a Trust Deed, any two or more people associated with any literary, scientific, or charitable purpose may establish a trust. Trust Deed must be filed with the Office of the Sub-Registrar of Jurisdiction. The Prevention of Names and Emblems Act should be consulted prior to selecting a Trust Name. The Jurisdictional Sub-Registrar is in charge of Trust Registration.
The Section-8 Company is one type of company in India, and its primary purpose is charitable. Its goals include promoting the arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental protection, among others. How do Section 8 companies provide these services without receiving compensation? Yes, they provide these services through public and corporate donations. These businesses will receive government grants. The nature of Section-8 companies is comparable to that of a Trust or Society, but they will have a great deal of credibility because they are registered with the central government, and a statutory auditor provides an audit report at the end of the accounting period. It can appeal to the public for a worthy cause and easily obtain donations. Through www.mca.gov.in, the website of India’s Ministry of Corporate Affairs, donors can verify the financial reports. Section-8 Companies may be registered as either Public or Private.
The Government of India declared on January 26th, 2018 that there is no incorporation charge for businesses with authorised share capital up to Rs. 1,000,000/- (Rupees Ten Lakh). This charge has since been raised to Rs. 15 lakh. Most Indian states do not require the payment of stamp duty on MOA and AOA. The other fees, such as Name Availability, Permanent Account Number (PAN), and Tax Deduction and Collection Account Number (TAN), are applicable as usual.
Who shall register a Section-8 Company: Any individual or association of individuals wishing to register a limited liability company for the purposes listed below may apply for registration of a Section-8 Company. The Central Government must be satisfied that:
(a) its objects include the promotion of commerce, art, science, sports, education, social welfare, research, religion, charity, protection of the environment, or any such other object;
(b) the company after incorporation intends to apply its profits if any, or other income exclusively to promoting such objects;Â
(c) the company intends to prohibit the payment of dividends to its members.
There are primarily three types of non-profit organizations in India, namely Section 8 Companies (previously Section 25): Section 20 of the Societies Registration Act of 1860-registered organizations. Trusts were established by the Indian Trusts Act of 1882. The differences between Section-8 Company, Trust, and Society are outlined below.
Particulars | Section-8 Company | Trust | Society |
---|---|---|---|
Governing Law | Companies Act, 2013 | Indian Trusts Act, 1982 | Societies Registration Act, 1860 |
Rigistering Authority | Registrar of Companies | Sub-Registrar | Society Registrar |
Minimum Members | 2 Directors cum 2 Shareholders | Tow members | 7 Members |
Cost of Formation | High | Medium | Low |
Compliance | High | Low | Medium |
Grants and Subsidies | High | Medium | Medium |
FCRA Preference | Highly preferred | Low preferred | Low preferred |
Section 80G & 12 A | Allowed to be registered | Allowed to be registered | Allowed to be registered |
Stamp Duty | In most of the Indian states, it is not required | To be paid | Not required |
Transperency | High | Less | Less |
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Listed below are the primary motives for registering in a society.
Donations & Grants:
The public can donate to a cause easily. This category of NGOs can easily obtain government grants. If a company receives licenses under Sections 80G and 12A of the Income Tax Act of 1961, the donors will receive tax benefits under section 80G of the Income Tax Act, and the company will be eligible for tax benefits under section 12A.
Low Cost of Formation:
The cost of forming a Society is significantly lower than that of a Section-8 company or a trust. No stamp duty is due at the time of a society’s incorporation. Digital Signatures are not required. Additionally, the Annual Compliance Cost is less than Section-8 Company. Annually, only the Minutes of the Society’s members must be submitted to the Society Registrar.
License under FCRA:
The Society can easily obtain a license under the Foreign Contribution Regulation Act of 2010 and receive foreign contributions, donations, and grants. The Foreign Contribution Regulation Act makes it simpler for the Society to obtain a license.
There must be a minimum of seven individuals who are majors in order to register a Society. One of the members should be a resident of the area. Listed below are the Required Documents and Society Registration Procedure Step-by-Step.
Proof of Registered Office Address: Latest Electricity Bill No Objection Letter cum Declaration from the landlord
A rental agreement will be given by the landlord if the property is rented.
Society email address.
Via Businesses - One-Hour House Job
We will draft the Society's Bylaws, Rules and Regulations, and other documents.
 Via Society Registrar's Web Portal - One-Hour Task
We will submit the Society's Application forms, Bylaws, Rules and Regulations online and pay the required fee.
3 to 5 Days
The Registrar will approve the form after review and issue the Certificate of Incorporation online.
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Congratulations on registering your new non-profit organization! The majority of NGOs do not know what to do after registering their organization. The other mandatory registrations and statutory compliance requirements of a Society are listed below.
Every Society is required to hold an Annual General Meeting of its members on or before September 30, within six months of the end of its fiscal year.
Each Society is required to submit its AGM Minutes to the Register within 30 days of its Annual General Meeting.
Every Society is required to file its annual Income Tax Return on Form ITR-5 by July 31. In the event of Tax Audit, the date will be September 30 of every year.
Every Company required to file TDS returns must do so within 31 days at the end of each quarter to avoid incurring penalties.
within 20 days of the quarter's end
Any company required to file GST returns using QRMS must do so by the deadline or face fines.
If you are a taxable dealer in the sale of Goods or the provision of Services, you are required to register for GST. If the company is registered under Section 12AA of the Income Tax Act of 1961 and the services it provides are for a charitable cause, then the company is exempt from GST.
Section 80G of the Income Tax Act allows a deduction for contributions made to certain relief funds and charitable organizations. Section 12A specifies which relief funds and charitable organizations are exempt from paying income tax on their surplus income.
Form 10A can be used to request an exemption under section 12A of the Income Tax Act as well as permission under section 80G. Donors and charitable organizations benefit from having both permissions from the Income Tax department, as the donor can claim a deduction from his total gross income, and the charity can claim exemption from paying income tax on excess income.
Foreign Contribution Regulation Act 2010 requires a license if a society wishes to accept contributions and donations from outside India (FCRA).
If you wish to protect your Society, brand, literary work, or invention, you must file an application for Trade Mark, Copyright, and Patent with the Indian department of Intellectual Properties.
Registration with NITI AYOG is required for NGOs seeking government grants.
Import Export Code (IEC) must be obtained if your Society intends to import or export goods or services.
By drafting a memorandum of association, seven or more people associated with any literary, scientific, or charitable purpose may form a society. The articles of incorporation must be submitted to the Registrar of Societies. The memorandum must include the name of the organization, its purposes, and the names, addresses, and occupations of the members of the governing body, by whatever name it is known, duly signed by all members forming the organization. In addition to the memorandum of association, a copy of the Society's rules and regulations must also be filed.
Any two or more parties involved with any literary, scientific, or charitable goal may create a trust by signing a trust deed. A trust deed needs to be turned up to the neighbourhood sub-registrar office.
By filing Memorandum and Articles of Association with the Ministry of Corporate Affairs, Government of India, any two or more people can form a Section 8 company for any literary, scientific, or charitable purpose.
Not really.
No, you don't have to renew the certificate.
Approximately 3 to 4 working days.
The approximate gov fee, including incidental expenses, will be around 2000 INR.
Yes, you can.
As ByLaws must be legally drafted, it is recommended that you contact a consultant such as us.
There is no minimum capital; requirement.
7
Any seven or more people.
Before a Society can accept contributions or donations from overseas/outside India from non-residents, the Foreign Contribution and Regulation Act, 2010 stipulates specific requirements that must be met. The Society Registration Act's requirements are in addition to those of this Act.
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