Section 8 ngo / npo formation

Sameer Sachdeva (4 Points)

27 August 2018  

I am working fulltime in a company based out of India, and I am interested in setting up Space Science (STEM education) NPO / NGO in India that will work with students and youngsters towards Research work in this field. I have following queries:

1) Can a fulltime working professional form such a company (Section 8 NPO) without any issues?

2) Can both the directors be of same family and any impact on Income tax or personal income as such?

3) Suppose if Section 8 NPO does not get sufficient funds in the first year or there is limited activity, then how will the Income Tax be submitted / how will the audit process go in such a scenario. My concern is that since such type of NPO needs more effort to get funds, so it might take few months or 1-2 years to get in pace.

Please help!