- Startup
Start Your Business
Exit Your Business
- Compliances
Change Services
Mandatory Compliances
Change in Structure
- Services
- ISO
- FSSAI
- ITR
- Contact Us
Non-profit organizations, such as trusts and societies, often undergo structural changes to enhance their legal recognition, transparency, and operational flexibility. Transitioning from a Trust or Society to a Section 8 Company (under the Companies Act, 2013) is a significant transformation that can provide various benefits, including increased credibility, access to more resources, and improved governance.
In this comprehensive guide, we will explore the key aspects of shifting from a Trust or Society to a Section 8 Company, including the reasons, legal requirements, and the step-by-step process.
Section 8 Companies enjoy greater legal recognition and are regulated by the Companies Act, making them more credible in the eyes of donors, partners, and government authorities.
Section 8 Companies have more operational flexibility, allowing them to pursue a wider range of activities, including profit-generating ventures to support their charitable objectives.
Section 8 Companies are subject to corporate governance norms, which can lead to more transparent and accountable management.
Unit No.233, 2nd Floor, Vipul Trade Centre, Sohna Road, Sector-48, Gurgaon-122018
Call us: +91 8376933702
info@finnextprofessional.com
Trusts and Societies have long been the preferred legal structures for non-profit organizations and charitable activities in India. However, in recent years, Section 8 Companies, governed by the Companies Act, have gained popularity due to their distinct advantages. Transitioning from a Trust or Society to a Section 8 Company is a significant transformation that can provide various benefits, including greater operational flexibility, improved governance, and enhanced legal recognition. In this comprehensive guide, we will explore the key aspects of shifting from a Trust or Society to a Section 8 Company, including the reasons, legal requirements, and the step-by-step process.
Resolution and Approval: Obtain necessary approvals from the members or governing body of the Trust or Society through a resolution to authorize the conversion.
Application for License: Apply for a license from the Central Government or the Registrar of Companies under Section 8 of the Companies Act, 2013.
Memorandum and Articles of Association (MOA and AOA): Draft new MOA and AOA in compliance with Section 8 Company regulations. These documents will outline the objectives and governance structure of the Section 8 Company.
Assets and Liabilities: Transfer assets, liabilities, funds, and other resources from the Trust or Society to the newly formed Section 8 Company.
Convene a meeting of the governing body or members to discuss and approve the conversion proposal, authorize necessary actions, and appoint new directors if required.
Once the license is granted, the Trust or Society can proceed with incorporating the Section 8 Company.
Register the Section 8 Company with the RoC by filing the required documents, including the MOA and AOA.
Ensure the efficient transfer of assets, liabilities, funds, and resources from the Trust or Society to the newly formed Section 8 Company.
Update all records, including bank accounts, tax registrations, and licenses, to reflect the new Section 8 Company structure.
Ensure ongoing compliance with Section 8 Company regulations, including statutory filings, financial reporting, and adherence to the Income Tax Act for non-profit entities.
we are not just consultants. we are partners on your journey to success.
Unit No.233, 2nd Floor, Vipul Trade Centre, Sohna Road, Sector-48, Gurgaon-122018
©2023. Finnext. All Rights Reserved. Design & Developed By Brand2Grand