In India, a non-profit organisation can be registered as trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a non-profit company under Section 8 Company of the Companies Act, 2013. Section 8 companies are similar to Trust or Society except for one factor that is a section 8-company register itself under Central Government’s Ministry of Corporate Affairs. In contrast to, Trust or Societies, which gets registered under State Government regulations.
Section 8 company is a company established with the objects of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, and apply all its profits and other income for promoting only the objects of the company and do not pay any dividend to its members.
To establish a Section 8 company, one needs to acquire the license and its essential to follow the annual compliances with the Ministry of Corporate Affairs (MCA) for the smooth operation of the company.
© 2023 Business Consultant & Law Firm - Legacy Partners. All Rights Reserved.
Designed by Nuewelle Digital Solutions LLP
We typically reply in a few minutes