Registration

Of
Social Enterprise
Social
Entrepreneurship
A social enterprise is a type of Planet: Your
environmental impact;
business where the bottom line
and success metrics are
2. how you contribute to a
sustainable planet or
measured in more than just reduce the carbon
profits. Instead, social enterprises footprint (CO2
typically measure success based emissions) of your
on a triple bottom line: business and customers.

People: The social impact of Profit: Like traditional

1 businesses, they need
your business, and your ability to make money in order
. w
to change lives and develop a
3. to sustain themselves,
pay workers and grow
community in a sustainable way. as an enterprise.

.
Social
Entrepreneurship
• Social entrepreneurship involves starting mission-based social
enterprises that dedicate some or even all of their profits toward
furthering a cause—giving their customers a purpose behind every
purchase.

• A Social Enterprises is also called a Non-Profit Organisation.

 Registration of Social Enterprise

In India, you can register a Non-profit organisation(NGO) in three ways:

Trust Society
Registration Registration

Section 8 Company
Registration (Earlier known as
Section 25 Company)
 Registration of Social Enterprise ..Contd.

• The type of registration you will need depends on the purpose you want to
achieve. So, you should choose a model that suits to your specific purpose.

• Please note that Society and Trust registration in India is different from


business registration. This is because societies, trusts, and NGOS have
charitable objectives. On the other hand, a business works only for profit.
Therefore, separate laws govern Society and Trust registration. The only
exception is a Section 8 company which is governed by the Companies Act,
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2013.
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• These entities receive some Special tax exemptions and benefits. These
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benefits are not available to commercial business set ups.
 
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 1. Procedure for Registration of Trust

A trust is a form of interest created in a property. This interest is

created by one person for the benefit of another person. The interest
in the property relates to its ownership. For instance, a father wants
his daughter to enjoy the benefits of his property. Now he can either
become a trustee himself and can also appoint his friend as one. Now

the trustee will manage the property and look after it. The daughter
will be the beneficiary. She will receive all benefits arising from the
property.
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 1.1 Trust Registration

Trust registration procedure in India depends upon the type of trust.

There are two types of trust:

 Public trust
 Private trust

Both are governed byWE ARE THE CHAMPIONS
separate laws. Registration of Private Trusts
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takes place under thevitae,Indian Trusts Act, 1882. But, there is no
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separate act for publicCras trusts
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respective state laws. These state laws usually appoint a
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commissioner who administers and carries all trust activities in that

state. One example of such state laws is Rajasthan Public Trusts Act,
1959. It appoints a Devasthan Commissioner for administering trust
activities in Rajasthan.
 1.2 Difference between a Public Trust and
Private Trust

 Public trust is formed to benefit the public at large. Private trust is

created for the benefit of one or more specific persons.

 Creating a public trust does not call for a formal deed or any other document


in respect of immovable property. However, private trusts do require the
same.

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 Public trusts accept donations from
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 Private trusts do not receive the egestas

tax benefits
tristique that public trusts receive.
 1.3 Validity of a Trust

Before proceeding to trust registration, you should know whether your trust is
a valid trust. The state public trust laws do not state any essential ingredients
of a valid trust. However, the Indian Trusts Act, 1882 which governs private
trust states that a valid trust must:


 Have a lawful purpose.
 Be for a beneficiary.
 Contain a property as its subject-matter.
 Such property WE
must be transferable to the beneficiary.
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 Be the creationEtiam
of vitae
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competent to contract.
 Have a written vitae,
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signed document
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 Appoint at least Cras

twoauctor
trustees.
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 Have one settler. egestas tristique

 Be for an object (religious or charitable).

 Have two witnesses.
 1.4 Documents Required for
Trust Registration
Following are the list of documents you need for trust registration:

 Trust deed on a stamp paper. The value of stamp paper varies from one
state to another.


 Passport size photographs of the settler, the witnesses, and the trustees.

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 ID proofs of the settler, the
Etiam vitaewitnesses, and
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 Proof of registered office. A egestas
documenttristique
such as electricity bill, water bill, or
house tax receipt.
SOCIETY

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 2. Procedure for Society Registration

Society registration in India takes place under The Societies Registration Act,
1860. A society is an entity that works for promoting any of the below-
mentioned activities or purposes.

Science
Art
Literature

Education WE ARE THE CHAMPIONS
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Public museums
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Libraries
Creating military orphan funds
 2.1 Difference between Society and Trust

Societies work in a manner similar to trusts. That is why these two terms are often used
interchangeably. However, both entities are different from each other. The Societies
Registration Act, 1860 governs societies in India. On the other hand, private trusts come
under the purview of Indian Trust Act, 1882. Apart from the governing acts, here are
some more key differences between the two. Society needs a minimum of seven
members, trust needs two.




Trusts don't need a separate all India registration, societies do.
Voting system governs a society, but one person can control a trust.
 Amendments are easy in case ofWE trusts,
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so in case of societies.
 Trust may be revoked with ease,Etiam
butvitaeit isduimore difficult
congue, semper quam in case of societies.
 A trust can have general objectives,
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objectives. Cras auctor turpis cursus urna eu

 It is possible to make a family memberegestas thetristique

trustee. But, it is usually not possible in case
of societies.
 A trust works as per the trust deed. A society works as per its MoA and regulations.

“Moreover, the society may have any other purpose if the state law allows it.”
 2.3 Registering a Society

State governments manage society registration. Therefore, an application for society

registration is sent to the appropriate state government. Appropriate state government
means the government of state where the registered office of the society is located. To
register a society, you need to take the below steps.

First, agree on a name Then prepare a MoA

with the consent of
founding members.
 and regulations of the
society.
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Finally, get the MoA

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Next, obtain signaturesegestas tristique
witnessed by an officer
of founding members
such as an advocate,
on the MoA.
CA, or notary public.
 2.4 Documents for Society Registration

 To complete the registration process smoothly, keep the following documents

ready.

 Cover letter that requests society registration. All members must sign this letter.

 MoA of the society. You need three copies of the MoA. One certified copy and
two ordinary copies
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 Two copies of Rules and Regulations of the society. Founding members must
sign both copies.
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 An Affidavit by the president or secretary. It must state the relationship
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between subscribers.
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 Address proof for the registered office.
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 No objection certificate from the landlord.

 
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3. Procedure for Registration of Section 8
Company

A Section 8 company is a company with

charitable objects and Section 8 of the


Companies Act, 2013 governs its registration.
This is why it is known as section 8 company.
However, earlier section 25 of the Companies
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Act, 1956 governed the same. Therefore, it is
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still commonly known as Section
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 3.1 Who Can Form a Section 8 Company

Anyone who is either:

 A person (including a partnership firm)

 An association of persons


 Any existing company may form a section 8/section 25 company.

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 3.2 Conditions for a Section 8

A section 8 company should make sure that:

Its aim is to promote a certain cause. This cause relates to:
 Commerce
 Art
 Science,
 Sports
 Education
 Research
 Social welfare 
 Religion
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 Charity Etiam vitae dui congue, semper quam
 Protection of environment or vitae, luctus ligula. Sed posuere nunc.
 Any other such object which is Crassimilar to above
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 It uses profits and other incomes only fortristique

egestas promoting the above cause
 Does not pay dividend to its members
If the company fulfills all these conditions, the Central government will issue it the license to
carry business. Moreover, along with the license, it will also receive the benefit of not having
to add private limited or limited after its name.16
 3.3 Features of a Section 8 Company

 It gets all the benefits of a limited company.

 But, all the limitations of a limited company also apply to it.

 It cannot make changes to its MOA or AOA without taking government's permission first.

It can convert into any other form of company but only if it meets the necessary conditions.



 The central government can cancel its license if it either does not fulfill its aims or fails to
meet other necessary conditions.
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 It can merge with another company
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 It does not need any minimum capital. egestas tristique

 There must be at least two directors.

 At least one director must be an Indian resident.

 3.4 Documents for Registration of Section 8
Company

Before registering your company as a section 8/section 25 company, keep the below documents
and details ready.

 Memorandum of Association in Form INC 13.

 Articles of Association.



Details of directors as well as promoters.

A declaration by a professional such as a Chartered Accountant in Form INC 14.
Declaration by subscribers in form INC 15.
 Application form in Form INC 12. WE ARE THE CHAMPIONS
 A statement which lists the groundsEtiamof application.
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 A statement of annual income andvitae, expenditure of the company for next 3 years, as well as
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the sources of income. egestas tristique
 Digital Signature Certificate (DSC) of the director, manager, or the secretary.
 Director Identification Number (DIN) of the directors.
 Proof of address such as electricity bill or phone bill, NOC from landlord, rent receipts etc.
 3.4 Documents for Registration of Section 8
Company …Contd.

 Copy of PAN card.

 Passport, in case any of the directors is a foreign national.
 Proof of ownership. However, you will need this only if the director or promoter also owns
the business premises.

Moreover, an existing company also needs some extra documents such as:
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 Board reports and auditor's reports.Etiam vitae dui congue, semper quam
 True copy of the resolution approving its registration
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nunc.
 A statement of its assets as well as liabilities.
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 A notice in Form INC 26. egestas tristique

 Approval from relevant authority.

THANK YOU