Not Profit Company
Not for Profit Company are registered under the Companies Act, 2013 and further regulated by local, state and federal laws. The main purpose of Non- Profit Corporation is to conduct business for the benefit of general public without having shareholders and where making a profit is not a primary mission. NPO is used as a broad based term that formed with the objective to encourage science, commerce, art, sports, education, research, social welfare, religion, charity and protection of environment
Not for Profit incorporations are the upcoming form of organizations owing to the fact that more and more people are getting aware of the cultural aspects are showing more interest towards non-profit objectives.
The NPO’s Act stipulates the state responsibility towards not for profit organization therefore designed in such a manner that the responsibility of its funding lies with their members, trustees, or others who do not expect any repayment and share of organization’s profits or losses in return.
- Non Profits Company is eligible to hire and pay staff to carry out operational and administrative functions.
- The funds acquired by not for profit organisation cannot be inures to the personal benefit of any individual and must stay within the corporate accounts to meet out general expenses and the activities of the corporation.
- It prohibits the payment of dividend to its shareholders.
- Unlike other corporate entities, various taxes like Minimum Alternative Tax, Dividend Distribution Tax and Surcharge does not apply to NPO.
- NPOs are granted with various tax exemptions, and contributions/donations to them are often tax deductible.