Section 8 Rental Listings –Venture Care|NGO Formation Services

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2. 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- governmentorganizations. A Non-profit organization can be registered as a Company under Section 8of 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 itsmembers. PROS OF SECTION 8COMPANY 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 theCompany. 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 itsname. NO STAMP DUTY PAYABLE: A section 8 Company is exempted for the payment of stampduty applicable for registration as applicable in case of other structures such as private limited or a public limitedcompany. CREDIBLE: A Section 8 Companyhas 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 8COMPANIES: 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 likewords. www.venture-care.com Ask@venture-care.com +91 91 72713075

3. It should intend to apply its profits, if any or other income in promoting itsobjects. It should intend to prohibit the payment of dividend to itsmembers. A partnership firm is allowed to be a member of theSection 8Company MINIMUM REQUIREMENTS FOR SECTION-8 COMPANY: At least twoshareholders Minimum twodirectors Shareholders and Directors could besame. At least one Director should be Indianresident There is no minimum capitalrequired. Registered Office Address Proof (Rent agreement if the premises is not owned by the company) Documents claiming the ownership such as Sale Deed or House Tax receipt along with an NOC. PROCEDURE FOR INCORPORATION OF SECTION-8COMPANY: Get Digital Signature Certificate (DSC) of allmembers. Get Director Identification number (DIN) of all Directors by usingDSC. Suggest at least Six Company name. We will do search for nameavailability. Apply to ROC for nameapproval. Once name is approved by ROC File application to Central Government in Form INC -12 for grant of License to start Section 8Company. Once Central Government issues License file Incorporation document with ROC like MOA AOA Consent of Director, Affidavit and declaration from directorsetc. Once Incorporation form is approved by ROC, ROC shall issue Certificate of Incorporation with PAN and TANNo. Requirement to Apply forDSC: All members should haveDSC Pan Card SelfAttested Residential Proof SelfAttested www.venture-care.com Ask@venture-care.com +91 91 72713075

4. 3. Dully fill and sign DSC applicationform. Requirement to Apply for DIN: (Minimum Two Directors arerequired) Photograph of the Applicant – To be Self-attested. PAN – To beSelf-attested MobileNo. 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 2months). DSC ofIndividual. Requirement to Apply for NameAvailability: Six Proposed name with significance ofName Authorized Capital-Optional Jurisdiction of Registrar ofCompanies. Main Object to be pursued byCompany Requirement to Apply for Central Government License of Section8Company: Draft MOA &AOA INC -15 Declaration by each subscriber (On Non- judicial stamp paper of Rs. 100/- and duly notarized). Affidavit by each subscriber regarding non disqualification (On Non- judicial stamp paper of Rs. 100/- and dulynotarized). Declaration by each subscriber regarding non acceptance of Public deposit (On Non- judicial stamp paper of Rs. 100/- and dulynotarized). Consent from all Directors in DIR-2 www.venture-care.com Ask@venture-care.com +91 91 72713075

5. Estimated statement of Income & Expenditure for Next three years and it should be signed the proposedPromoters. Estimated Balance Sheet for Next three years and it should be signed the proposed Promoters. List of proposed Promoters and Directors of theCompany Statement of ground on which application ismade. Requirement to Apply for Incorporation of Section8Company: Registered office address of Company. Recent Address proof with NOC fromOwner. TIMEPERIOD: Time Required for Incorporation of Section 8 CompanyShall be 30-60 days, depending on governmentapproval. REGISTRATION OF COMPANY UNDER SECTION 12A AND 80G OF INCOME TAXACT. 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 IncomeTax. 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 theinstitution. 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 TaxAct. www.venture-care.com Ask@venture-care.com +91 91 72713075

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