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       Procedure for Registration of NBFC & Housing Finance Company NO NBFC can commence or carry on business of a financial institution without obtaining a Certificate of Registration(COR) from the RBI and having a Minimum Net Owned Funds of RS. 2 Crore. 1. Incorporation of Company Firstly, incorporate a Company following the normal procedure as prescribed under co. act 2013 and rules made thereunder. 2. Pre-requisite of Registration with RBI a) It should be a company registered under Companies Act,2013 or previous Companies Act,1956. b) It should have minimum net owned funds of INR Rs. 2 crore. c) It should have minimum 1 director from NBFC background or senior Bankers as full-time director in the company d) Clean CIBIL records e) Understanding of NBFC/Finance business                                                        ...

                        Steps for Registration of Society 1) Selection  Name for the Society A name should be selected for the society keeping in mind the following points: => Cannot use identical or similar name of a currently registered society => The name shall not suggest any connection with State Government or Government of India => It shall not contravene with the provisions of the Emblem & Names Act, 1950. 2) Draft Memorandum of Association contain:-  a. Name of the society; b. Objective of the society; c. Names, addresses & occupation of the members of the governing body, d. Place of registered office of the Society, and e. Names, addresses and full signatures of the 7 or more persons subscribing their names to the MOA. Their signatures should be witnessed.                                       ...

                                          FORMATION OF A SOCIETY How to make society :-  Under Section 1 of the Societies Registration Act, 1860, any 7 or more persons who have  come together for any legal pursuits, including literary, scientific, charitable or social  pursuits, may subscribe their names to a memorandum of association and file the same  with the Registrar and form themselves into a society under this Act.  The MOA filed with the Registrar should contain details such as the name and objectives of the society, names, addresses and occupations of the members of the governing body with which the management of the affairs of the society is entrusted.  A copy of the rules and regulations of the society should be provided. With the completion of these processes, the society could be registered with the Registrar after payment of a fee as specif...

  Consequences of Registration or Non-Registration of the Society The Societies Registration Act, 1860 lays down procedure for registration of societies for various bonafide purposes. The registration gives the society a legal status and is essential for:  => obtaining registration and approvals under Income Tax Act;  => lawful vesting of property in the societies;  => provides authenticity and recognition to the society before all authorities . => for opening bank accounts and transaction of business.Effect of Registration => Only after registration, the internal rules & regulations and bye – laws bound its members.                                                                     => The society can undertake only the activities which are mentioned in its objects. => A non...

   What is society, it's advantages & disadvantages  A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common purpose.  Societies are usually registered for promotion of charitable activities like education, art, religion, culture, music, sports, etc.,  In India, The Societies Registration Act, 1860 lays down the procedure for society registration and operation in India.  The Act has been adopted by most of the State Governments with/without modifications as considered by the respective State Governments. According to Section 20 of the Societies Registration Act, 1860, societies can be formed for the following purposes:  i. Charitable societies,  ii. The military orphan funds or societies established at the several presidencies of India,  iii. societies established for the promotion of science, literature, or the fine arts for instruction, the diffusion of useful kno...

    Exemptions & procedure for registration of trust   Exemptions available to Charitable and Public Trust: Section 10 of the Income Tax Act, 1961 Total tax exemption is available for certain types of Trusts, if both the following conditions are satisfied - => The activities of Trust shall be related to sports, education, scientific professions, or promotion of khadi and village based industries, hospitals etc. and => They shall be notified as charitable or religious institutions.Section 11 of the Income Tax Act, 1961 If the trust is for any religious or charitable purpose then, any income, profits or gains earned by such trust from a property held by the trust shall not be included in the total income of the trust. Section 12 of the Income Tax Act, 1961 => Income received by way of voluntary contributions towards the corpus of the trust shall not be taxable. => If Charitable trusts are created for the benefit of any of the socially and economically backwa...

          What are the Duties,powers,& rights of a trustee   Duties of Trustee (Sec 11 to Sec 22) Duties of Trustee are as under: i. Proper execution of the trust as per the directions given in the instrument of the trust(Trust Deed). ii. Acquaintance(be familiar) with the nature of the trust property, so as to do justicewith the trust and it purpose. iii. Protect and preserve the trust property. iv. Not to set up an adverse title. v. To deal as a man of ordinary prudence would deal with such property as if it were his own. vi. To convert the property of a wasting nature into that of permanent nature. vii. To act impartially or in favour of all beneficiaries. viii. In case of a trust created for several people in succession, if one person is doing something injurious to the trust property, the trustee needs to take preventive steps ix. To maintain accurate accounts of the trust property and to invest the trust property and funds in the eligible securiti...

         TRUST - What is trust & trust definition in law & process,limits A Trust is a relationship in which a person or entity holds a valid legal title to a certain property which is known as the Trust property.  The Trust is bound by a fiduciary duty to exercise that legal title for the benefit of any one or more individuals or group of individuals or organisations, who are known as the Beneficiaries.  The Trust shall be governed by the terms of the Written Trust agreement also called as Trust Deed. Trust is defined in section 3 of the Indian Trust Act, 1882 as - => “an obligation annexed to the ownership of property  => and arising out of a confidence reposed in and  => accepted by the owner, or declared and accepted by him,  => for the benefit of another or of another and the owner.  In other words, it is simply a transfer of property by one person (the settlor) to another  (the “trustee”) who manages t...

                              SECTION 8 COMPANY act, 2013 An association which is registered u/s 8 of the Companies Act, 2013 is known as  Association not for Profit. Section 8 of the Companies Act, 2013 reads as under:  Section 8(1) : If Central Government is satisfied that a person or an association of  persons proposed to be registered under this Act as a limited company — a) has in its objects the promotion of commerce, art, science, sports, education,  research, social welfare, religion, charity, protection of environment or any such  other object;  b) intends to apply its profits, if any, or other income in promoting its objects; and  c) intends to prohibit the payment of any dividend to its members,  Then The CG may, by licence issued in prescribed manner, and on such conditions as it  deems fit, allow that person or association of persons to be registered as a ...

      Procedure for Registration of Section 8 Company 1) Obtaining Digital Signature Certificate (DSC) & Directors Identification  Number (DIN) Obtain the DSC of the persons who wish to be Directors in Sec 8 Company. File  Form DIR-3 with ROC for getting the DIN. 2) Name Reservation The promoter should apply for name reservation through RUN facility on MCA  website. 3) Draft MOA /AOA The object clause of MOA should include promotion commerce, art, science, sports,  education, research, social welfare, religion, charity, protection of environment or  any related object.                                                                         4) Application for Obtaining License from Government Once name is reserved, an application will be made for obtaining licence in ...

            What do you mean by private company   PRIVATE COMPANY  A company, which has a minimum paid-up share capital as may be prescribed and which by its articles provides the following:  i. Restricts the right to transfer its shares;  ii. Except in the case of OPC, limits the number of its members to 200 excluding present and past employees who continue to be the members of the company (here joint members shall be counted as one); and  iii. Prohibits any invitation to the public to subscribe for any securities of the company.  There should be at least 2 persons to form a private company. A private company should have at least 2 directors. The name of a private limited company must end with the words "Private Limited".                                                           ...