Nonprofit organizations (NPOs) are formed to promote art, science, commerce, charity, religion or social development and not for personal profit. NPOs do not make profits for their owners, instead, all their revenues are utilized in pursuing the objectives.
A non-profit organisation can be registered in India as
Public charitable trusts may be established for several purposes, including poverty relief, education, medical relief, the provision of facilities for recreation, and any other objective of general public utility. Indian public trusts are generally irrevocable.
Societies are membership-based organizations that may be registered for charitable purposes. They are usually managed by a governing council or a managing committee and are regulated by the Societies Registration Act which has been modified and adopted by various states. Unlike trusts, societies may be dissolved.
Under Section 8 of the Indian Companies Act, the Central Government may issue a license to a limited or private limited company which:
Whether a trust, society or Section 8 company, the Income Tax Act, 1961 gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors to non-profit organisations may claim a rebate against donations made. Foreign contributions to non-profits are governed by FCRA regulations and the Home Ministry.
We at SimplyBiz can advise you on the right form for NPO to be chosen, help you set up the NPO and also assist you with the exemption registrations under Section 80A & 12G. We have set up Section 8 companies, Trusts and Societies and provide ongoing support to them.
Please reach us at email@example.com with your requirements and we shall be happy to help.