Regarding section 8 company

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2018 Dear sir/ma'm

We want to start a foundation in the field of education and research where we want to set up a research institute to provide a platform for technical students but we have some queries regarding it which are as follows:

1). What is better trust vs section 8 company for purpose shown above?
2). What is the funding source for section 8 company?
3). How can we draw salary for individual employees? is there sp. provision for it?
4). Is it possible to generate a profit to generate fund from manufacturing something for a purpose of charity?
5). If we already registered a section 8 company then is it required sp. license from govt body to raise a fund?

Please help us to solve a query shown above

ND (Expert)
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24 September 2018 queries regarding it which are as follows:
1). What is better trust vs section 8 company for purpose shown above? Either of these can be used. Only thing is that it is easier to close a trust as compared to a Section 8 Company. Then in case of outside funding , Donors usually prefer a company as compared to a trust due to transparency.
2). What is the funding source for section 8 company? It can be initially share capital.
3). How can we draw salary for individual employees? is there sp. provision for it? The employees can be employed by a trust as well as a company.
4). Is it possible to generate a profit to generate fund from manufacturing something for a purpose of charity? Yes, it is possible. But that will be counted as a profit activity and not a charitable activity.
5). If we already registered a section 8 company then is it required sp. license from govt body to raise a fund? Please help us to solve a query shown above . If that Section 8 company is registered u/s 12AA and 80 G of Income Tax Act, then there is no need to take any other approval to raise domestic funding. In case you want to raise funds from abroad, then you need approval from FCRA

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2018 Thank you so much, @ND , Dear sir as per you say To raise a funds from abroad we need approval from FCRA. Here I have one more question in my mind is that what if we raise a fund from domestic Crowd Funding portals? (https://milaap.org/)
Where if we put our initiative to that portal; Donors either may from India or abroad. So what about it? Is it counted as foreign Fund?

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2018 Hello Experts!! I also requesting to all of you if you have any important materials regarding Section 8 companies which helps me best to decide; please send it on my mail id tajagnavyas1995@gmail.com. or also suggest me link if it available anywhere online or offline.