Non-Profit organization

A Non-Profit organization (NPO) is a Company established for promoting commerce, art, science, religion, charity or any other useful object, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. An NPO/NGO can be formed for 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. It means that the Company can earn profits but the promoters cannot be benefited out of those profits.

ADVANTAGES 

• Exemptions and privileges under Company Law.
• Exemption from requirement of Minimum Paid-up capital.
• Exemption of Stamp duty for registration.
• Non-application of Companies Auditor’s Report Order (CARO) 2003.
• Registered partnership firm can be a member in its own capacity.
• Tax deductions to the donors of the Company u/s. 80G of the Income Tax Act

LIMITATIONS 

• Company has to ensure that its profits and all other incomes are utilized only for the purpose of promoting its objects and not for any other purpose.
• The Profit of the company cannot be distributed a Dividends to its Shareholders.
• The Company cannot act beyond the rules imposed by the Central Government, it has to follow the rules and accordingly.

REGISTRATION PROCESS 

• Initial level discussion between the Promoters and FirstMan team.
  • Ascertaining documents required and availability.
  • Preparation and signing of documents.
• Getting DSC [DIGITAL SIGNATURE CERTIFICATE] for all Directors.
• Getting DIN [DIRECTOR IDENTIFICATION NUMBER] for all Directors.
• Name availability and draft Object Clause.
  • o Online search of availability of names as desired by the directors.
  • Prepare the draft Object Clause.
  • Get approval from client for company name and objective.
• Application for Name Availability i.e. Filing Form 1A with the concern ROC.
• Application for Regional Director ROC for issue of License. i.e. Filing Form 24A.
• Changes to be made in Objective as suggested by ROC.
• Public Notice / Advertisement within 7 days of application to the ROC.
• After getting License from ROC.
  • Filing all the Incorporation document with ROC.
  • Online filing of e-forms and payment of registration fees.
  • Receiving Incorporation Certificate from the ROC.