I want to set up a Section 8 NGO in Dehradun, what are the requirements and tax benefits?

Detailed Legal Analysis

To set up a Section 8 NGO in Dehradun, you need to follow specific legal requirements and understand the tax benefits associated with such organizations.

A Section 8 company is a non-profit organization registered under the Companies Act, 2013, aimed at promoting charitable objectives. Here are the key requirements and steps involved in establishing a Section 8 NGO:

• Define the Objectives: Clearly outline the charitable objectives of your NGO, which could include activities related to education, health, environment, or social welfare.
• Minimum Requirements:
  • A minimum of two directors (for a private limited company) or three directors (for a public limited company).
  • At least 2 shareholders; they can be the same as the directors.
• Name Approval: Apply for name approval with the Ministry of Corporate Affairs (MCA) to ensure the name is unique and adheres to the naming guidelines.
• DRAFTING OF DOCUMENTS: Prepare the following documents:
  • Memorandum of Association (MoA).
  • Articles of Association (AoA).
  • Declaration by directors.
  • Identity and address proof of directors.
• Filing with ROC: Submit the application along with the required documents to the Registrar of Companies (ROC) through the MCA portal. This includes filing for incorporation under Form INC-12.
• Obtain License: After ROC approval, obtain a license under Section 8 of the Companies Act, 2013, which permits you to operate as a non-profit entity.
• Registration under Relevant Acts: Consider registering under the Foreign Contribution (Regulation) Act, 2010 (FCRA) if you plan to receive foreign funding.
• Tax Exemptions: Apply for 12A and 80G registration under the Income Tax Act, 1961, to avail tax benefits:
  • Section 12A allows tax exemption on income.
  • Section 80G provides donors with a deduction on their contributions.

In conclusion, establishing a Section 8 NGO in Dehradun involves careful planning and adherence to the legal framework set out by the Companies Act, 2013, along with obtaining necessary tax registrations for financial benefits. It is advisable to consult with a legal expert or a company secretary for a smooth registration process.