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What is Non Profit Organization?
All you need to know
An NPO/NGO can be formed for the promotion of any useful object like sports, education, research activities etc. The term No Profit does not mean that the Company cannot generate profit or income, but it essentially means applying the income for further promotion of the object and not for distributing it to the promoters.
What is Non-Profit Organization (NPO)?
A Non-Profit Organization means a trust, company, or other association of persons
- established for a public purpose and
- The income and property of which are not distributive to its members or office bearers except as reasonable compensation for services rendered.
In India, NGO is a term for all non-profit organizations including Trust, Society and Section 8 Company.
- Trust: In Charitable Trust at least two people are required, there is no limit of maximum members
- Society: In society, the minimum seven members are required to be the members
- Section 8 Company: A non-profit Company can 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.
Benefits of registering an NPO:
- Improves the credibility of the sector because NPOs can account to a public office.
- Brings organizations into a formal system
- Helps the sector to get organized.
- Helps in finding ways of getting benefits like tax exemptions and funding opportunities.
- Donations made by individuals to the nonprofit corporation may be tax-deductible
It means that the Company can earn profits but the promoters cannot be benefited out of those profits. Bhavitra.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Incorporating a Section 8 Company (Non-Profit Organization) is easy, seamless, cheapest and quickest with Bhavitra.com! Apart from an NPO, Bhavitra.com also helps entrepreneurs with Private Limited Company Registration, Public Limited Company Registration, LLP Registration, HUF, One Person Company and Proprietorship Firm Registration easily. You may get in touch with our compliance manager on 09643203209 or email info@bhavitra.com for free consultation.
Non Profit Organization Registration Fees
Choose Your Package
ESSENTIAL
₹ 13999/-
- 2 Digital Signature Certificates
- 2 Director Identification Numbers
- Name Approval
- Company Incorporation using SPICe Plus (up to 1 lakh of authorize capital)
- Copy of e-MOA & e-AOA
- e-PAN
- e-TAN
- ESIC Registration through SPICe Plus
- PF Registration through SPICe Plus
- Bank Account Opening through SPICe Plus
- Section 8 License
ENHANCED
₹ 20999/-
- 2 Digital Signature Certificates
- 2 Director Identification Numbers
- Name Approval
- Company Incorporation using SPICe Plus (up to 1 lakh of authorize capital)
- Copy of e-MOA & e-AOA
- e-PAN
- e-TAN
- ESIC Registration through SPICe Plus
- PF Registration through SPICe Plus
- Bank Account Opening through SPICe Plus
- Section 8 License
- Application under Section 12AB of the Income Tax Act
- Application under Section 80G of the Income Tax Act
ULTIMATE
₹ 25499/-
- 2 Digital Signature Certificates
- 2 Director Identification Numbers
- Name Approval
- Company Incorporation using SPICe Plus (up to 1 lakh of authorize capital)
- Copy of e-MOA & e-AOA
- e-PAN
- e-TAN
- ESIC Registration through SPICe Plus
- PF Registration through SPICe Plus
- Bank Account Opening through SPICe Plus
- Section 8 License
- Application under Section 12AB of the Income Tax Act
- Application under Section 80G of the Income Tax Act
- Application for Registration of Entity for Undertaking CSR Activities
- NGO Darpan Registration
Key Features of Non Profit Organization
Points to make your decision easy
Characteristic
It operates for welfare of general public, for promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such similar object.
Exemptions
An Non Profit Organization enjoys several exemptions such as no minimum capital, tax deduction to donors as well as to NPOs, exemptions from suffices such as Private Limited or Limited etc.
Profits
Like a private limited company, a Section 8 Company will have incomes, expenses, profits or losses. But in this form of company, profits can be used only for the charitable or not-for-profit purposes mentioned its MOA.
Documents Required for Non Profit Organization
Quick Checklist
- Photograph of all the Directors
- PAN Card of all the Directors
- ID Proof of all the Directors (Driving License/Passport/Voter ID)
- Electricity Bill or any other utility bill for the address proof of the Registered Office
Specific Requirements
A Company must have a registered office in India. Documents like bank statement or electricity bill should not be older than 2 months. Along with that utility bill, rent agreement or sale deed and a No Objection Letter (NOC) from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
How to Form Non Profit Organization
5 Easy Steps
1
Obtain DSC2
Reserve Your Company Name3
Submission of MOA & AOA4
Get Company’s Incorporation Certificate5
Get Company’s PAN & TANFill a Simple Checklist
A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
Name Approval
Once your documents along with the Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently will apply for the the approval of name for your Section 8 Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Section 8 Company in Part A of SPICe Plus form.
Registration
We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.
FAQs
Get answers to all your queries
It is an entity such as a Section 8 Company, Trust or Society formed for charitable or social purposes.
Both work for social causes, while NGO is a broader term and NPO describes an organization formed without profit distribution to members.
Yes. Income can be earned, but it must be applied towards the objectives of the NPO rather than distributed for members' personal benefit.
Examples include schools, research bodies, healthcare trusts and environmental societies.
It is a type of non-profit company formed under the Companies Act for charitable or social objectives.