Q. Is audit of LLP is mandatory as per the LLP act?

No, the audit of LLP is not mandatory from zero turnovers. However, it becomes mandatory if the total contribution by partners is more than 25 lakh or the total turnover is more than 40 lakhs.

Q. What documents are required to open the bank account of LLP in India?

The following documents are required to open the bank account in the name of the LLP in India: Certificate of Incorporation (COI), PAN CARD Acknowledgment, LLP Agreement, PAN and ID of the designated partners, Some formats to be given by Bank itself.

Q. What do you mean by Designated partners? And who can become a partner in LLP?

Designated Partners are the partners who are responsible for the whole conduct of the LLP. They are appointed since incorporation to take care of the LLP functioning. Each designated partner is allotted a DPIN which is another name for DIN.Any person including the body corporate can become the designated partner.

Q. Is there any minimum capital requirement to register a LLP in India?

No, there is no minimum capital requirement for LLP formation in India. Any person can incorporate a LLP of capital of his choice.

Q. How to Select Name for Section 8 Company?

Section 8 company is the nonprofit organization which aims to work on the social matters of the society. Further, a section 8 company does not need to end the company name with the word “limited” or “private limited.” The names under section 8 companies may end with “foundation” “cry” or you may choose any other word.The first word under section 8 company should be your brand or the name which you want to use in your NGO like PlantinIndia, being human etc.Important Point: The new company name should not match the existing company or any existing trademark in India.

Q. Why it is called a Section 8 Company with examples? What is the difference between Section 25 Company registration and Section 8 Company registration?

A NGO registered as a company under Companies Act, 2013 is known as section 8 Company. It is called section 8 company because the provisions relating to registration of this type of company is mentioned in section 8 of the Companies Act, 2013. Section 25 Company is the old name of Section 8 Company. Earlier, before enactment of Companies Act, 2013, company law was governed by Companies Act, 1956. Under the Companies, act 1956 the law relating to NGO registration was mentioned in section 25 of the companies act, 1956 and hence earlier it was also called the Section 25 Company in India.

Q. What other licenses are required for section 8 company to claim tax exemption?

Section 8 company registration is the first step to start your NPO/NGO in India. It does not provide you any tax exemption. Tax exemption is given by Income Tax Act, 1961. The two important registration required for tax exemption are as follows: - Section 12AA Registration to exempt the income of the Company: To claim any exemption under the income tax act, you need to register under the section 12AA registration. Once registered, you need to comply with the provisions to avoid any scrutiny by the tax department, Section 80G Registration to provide exemption to the donors: This is a one step ahead registration. If you are registered under section 80G, then any person donating to your company can also claim the exemption in his IT return, FCRA Registration: In case you want to claim the donations from the foreign country, then you need to take registration under FCRA Act. However, to be eligible to take the foreign donations/contribution you should be atleast 3 years old company or you should apply for prior permission.

Q. Which are the top Nidhi Companies in India currently?

The top Nidhi Companies currently in India includes Maben Nidhi Limited, Muthoottu Nidhi (Kerala) Limited,Mini Muthoottu Nidhi Kerala Limited,Kalayil Nancy Nidhi Limited.

Q. What are the advantages for Section 8 (pros/merits) company?

Section 8 company is nonprofit company which aims to support the social objectives of the society. There are many advantages of this form over trust and society registration: It is easier to register under Income tax act, 1961 because section 8 company have proper documentation, It is the registered form of NPO and hence more trust factor to people donating into it, Section 8 company can work on PAN India basis and does not require any separate approval, Section 8 company is formed after Central Government approval and hence offers more authenticity.

Q. What are the disadvantages (cons/demerits) for Section 8 Company?

Section 8 company is one of the best forms to register in case you planning to register a NGO. However, it has certain disadvantages which are as follows: Section 8 company is difficult to start because it requires Central Government Approva, Section 8 compliance cost is high as compared to any other NGO/NPO form, Penalty provisions are little harsh under section 8 company.