Annual Filing for NGO / NPO / Section 8 Company
What is a Non-Profit Organization / Non Government Organization?
- A Non-Profit Organization means a trust, company or other association of persons, that is established and incorporated for a public purpose.
- The income and property of such organization are distributive neither to its members nor to office bearers except as reasonable compensation for services rendered.
- In India, NGO includes all kinds of Non Profit Organization i.e. Trust, Society and Section 8 Company.
- In a Charitable Trust at least two people are required, there is no limit of maximum members.
- In society, a minimum of seven members are required to be members.
- A non-profit Company can also be registered under section 8 of the Companies Act with the Registrar of Companies.
- Other names for such not-for-profit organizations are “Sangathan”, “Sangh”, “Sangam”. Income tax exemption is available for all non-profit NGOs.
Annual Compliance of NPO / NGO / Section 8 Company
Section 8 Company is registered under the Companies Act, 2013. Hence the Section 8 Company has to comply with the Compliance mentioned in the said act for the companies. It is necessary for the Section 8 Company to follow the compliances prescribed by the Ministry of Corporate Affairs.
Advantages of Section 8 Company Annual Compliance
- Regular Compliance fulfillment provides the Section 8 Company with the better credibility or trustworthiness.
- It also helps Company to raise funds for the causes that the Section 8 Company.
- Also, the regular Annual Return Filing ensures the continuous existence of the organization.
- Being Compliant and adhering to the Annual Compliance needs may protect the company from getting in to all types of legal trouble.
- Also, it helps the Section 8 Company in protecting itself from penalties and punishments.
- The main objective of Section 8 Company is to form trust among its customers, being regular in filing annual return helps the company achieve this objective.
