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Trust/NGO/Section 8 Company

FORMATION OF NGO

The NGO can be formed in the following categories.

1. Trust
2. Society, and
3. Non-profit Company ( Section 8 Company)

TRUST

The procedure for registration of Trust is as follows:

Public charitable trust is usually floated when there is property involved, especially in terms of land and building.

Legislation: Trust registration is different states wise in India but general principles of the Indian Trusts Act 1882 are applied.

Main Instrument: The main instrument of any public charitable trust is the Trust Deed,  which contains the objective, situation clause, Right, Power of Trustee, and other relevant clauses for the function the trust.

Minimum Two-people required for incorporating the trust.

One person should be Author/Settler, and he can be a trustee.

Advantages of Trust Registration

  1. An NGO registered under the Trusts Act can use the word “Govt. Regd.” or ‘Regd’.
  2. Trust can take Land from the government.
  3. There are several tax benefits such as Income Tax, etc.
  4. The donor can take benefit u/s 80G,  after donating the amount to the trust.
  5. White capital for Building construction.

Following objective cause:-

  1. As per S.2(15) of the Income Tax Act, 1961, unless the context otherwise requires, the term “charitable purpose” includes
    1. relief of the poor,
    2. education,
    3. yoga,
    4. medical relief,
    5. preservation of the environment (including watersheds, forests, and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and
    6. the advancement of any other object of general public utility

For Trust, Registration is mandatory under and it differs from state to state.

  1. For Trust Registration under Sub Registrar it depends vary state to state.
  2. If the trust does not want to pay tax on its surplus donation then it has to apply Registration U/s 12A under the Income Tax Act,1961, to exempt their donation. ( 12AA Certificate)
  3. If trust wants the donor should take benefit of donation than trust can apply U/s 80G ( 80G Certificate).
  4. 12AA & 80G Certificate are valid up to five years, afterward, it can be renewed for the next five years.

All about Trust.

Proprietor

The sole ownership is the most established, least difficult, and most regular type of business entity. It is a business possessed by a person. For tax and legitimate liability purposes, the proprietor and the business are indeed the very same. The owner is not a different entity for taxation purposes. Note that the profit of the business is exhausted at the individual level, regardless of whether they are quite money. For risk purposes, the individual and the business are additionally indeed the very same. In this way, lawful inquirers can seek after the individual property of the owner and not just the advantages utilized in the business.

Maybe the best favorable position of this type of business is its effortlessness and ease. You are not required to document with the government, nor are any lawful sanction required. The sole ownership type of business has different favorable circumstances:

 

The proprietor or owner is in finished control of business choices and decisions.

The income generated through operations can be directed into the proprietor’s pocket or reinvested as he or she sees fit.

Profits flow directly to the proprietor’s personal tax return; they are not subject to the second level of taxation. In other words, profits from the business will not be taxed at the business level.

The business can be dissolved as easily and informally as it was begun.

These advantages account for the widespread adoption of the sole proprietorship in India. Any person who wants to set up shop and begin dealing with customers can get right to it, in most cases without the intervention of government bureaucrats or lawyers.

Disadvantages of the Sole Proprietorship:

This legal form of organization, however, has disadvantages:

The amount of capital available to the business is limited to the owner’s personal funds and whatever funds can be borrowed. This disadvantage limits the potential size of the business, no matter how attractive or popular its product or service

Sole owners have the boundless risk for all obligations and lawful decisions brought about over the span of the business. Along these lines, an item risk claim by a client won’t be made against the business but instead against the proprietor.

The business will most likely be unable to draw in high-bore workers whose objectives incorporate a portion of business ownership. Sharing the advantages of ownership, other than basic benefit-sharing, would require an adjustment in the legal form of the business.

Some employee benefits, such as the owner’s life, disability, and medical insurance premiums, may not be deductible or maybe only partially deductible from taxable income.

 

Is it necessary to register the Sole Proprietorship firm in India? : No registration is required for a sole proprietorship. You simply have to open a bank account with the name & style you want to work. But if you are liable for GST, then you have to obtain GST registration. Further, for a sole proprietorship, no separate income tax PAN is required. The PAN of the proprietor will be the PAN of the firm and the proprietor will have to file an income tax return in his personal name.

Basic

INR 9,999/-

One Time Fee

  • Trust Registration under Trust Act, 1882
  • PAN, & TAN
  • Bank A/c.

Service Provide Within 7 Days

Standard

INR 39,999/-

One Time Fee

  • Trust Registration Under Trust Act,1882
  • PAN & TAN
  • 12A & 80G
  • NITI Aayog
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days

Premium

INR 9,999/-*

Yearly Fee

  • Yearly Income Tax Compliances.
  • TDS Compliances
  • Income Tax Return
  • Trust Balance sheet, I&E, R&P.

* Fee Applicable up to Donation Receipt 10 lacs

Services Provided Before the Due Date

Frequently Asked Questions

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