CA DK Agarwal

What is NGO?

A society is formed when group of person come together with a common purpose. A society is registered under Societies Act, 1860.

Requirement of minimum members

Minimum 7 members are required to form a Society

All the compliances of a trust as per the provision of the Income tax Act are same and applicable to a Society except the following:

Registration process of Society

  • Selection of name: The very first step is to determine the name of society.
  • Memorandum of Association: The Memorandum of Association of the society along with Rules & Regulations of society must be signed by every establishing member, witness by Gazetted Officer, Notary Public, Chartered Accountant, Oath Commissioner, Advocate, Magistrate first-class or Chartered Accountant with their official stamping and complete address.
  • Register with Sub-Registrar: The following document has to be prepared and submitted with registrar office.
    • Copy of Memorandum of Association of society along with certified copy
    • copy of Rules & Regulations of society along with duplicate copy duly signed by all establishing members
    • Address proof of registered office of society as well as no-objection certificate (NOC) issued by landlord.
    • Affidavit avowed by secretary or president of society declaring relationship among subscribers
  • Application for PAN and TAN: Applicant may either make an online application through this website or submit physical PAN Application to any TIN-FC or PAN centre of Protean.

 
Section 8 Company

Introduction
Section 8 Company referred to as a company which is registered as a Non-Profit Organisation (NPO) which has motive of promoting education, charity, sports, research, social welfare, religion and using the profit incurred for promoting these objectives.

Incorporation of a Section 8 Company

Companies Act deals with the incorporation of Section 8 Company. An application in Form No. INC-12 has to be submitted along with the below mentioned documents to the Registrar of Companies:

Form No. INC-13: Draft Memorandum of Association (MOA) and Articles of association (AOA) of the company in Form No. INC – 13

Form No. INC-14 : A declaration( on stamp paper & notarized by an Advocate, a Company Secretary, a Chartered Accountant or a Cost Accountant, practicing the profession) that the Draft MOA and AOA are in compliance with the provisions of Section 8.

Form No. INC-15 – A declaration in Form no. INC-15 on stamp paper & notarized by each member of the company who is applying.

 
Section 8 Company can also be incorporated using the form Spice +, in part A of form- reserve the name followed by part B. License No. shall be provided to section 8 company during the incorporation.

Tax Compliance for Section 8 Companies

Section 8 Company shall pay Corporate Tax as per Income Tax Act. Further, Section 8 Company can avail exemption from certain income if it fulfils the following compliances:

Section 8 companies must be registered under Section 12A of the Income Tax Act, using form 10A/ 10 AB (as applicable).

To the conditions mentioned it must fulfilin the Section 11 (if the company wants to avail the benefits of the exemption.)

The company must approve Section 80G through Form 10A/10AB (as applicable).

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