Registration of an association
Mana
(Querist) 28 June 2013
This query is : Resolved
We are an unregistered Trader's Association, who are suppliers of raw materials and machinery to the Laminate Sheets Manufacturing Units of India. Its an All India based organization. Popular name for Laminate Sheets is "Sunmica" sheets
Members are : Any business entity in the form of
Proprietorship firm, Partnership firm, H.U.F., Pvt. Ltd. Company, Public Ltd. Company, which is involved in trading, dealing, manufacturing, supplying, stocking, distributing, printing, authorized agents and indenters of raw materials and machinery manufacturing to “The Laminate Manufacturing Industry”
What do we want?
• Limited Liability on Members
• No system of Share Holding, as Members cannot be forced to buy and sell shares
• We want exemption from paying income tax, i.e. we want the benefit of 85% expenditure rule
• A legal accounting system, i.e. service tax number, PAN number (So that we can claim refund of Tax deducted at Source)
Under which Act should we register ourselves?
Mana
(Querist) 28 June 2013
But I thought the matter of "under which Act we should register" is a under the domain of a lawyer and not a CA. A lawyer would be better able to scan all possible Acts and suggest the best suited one. I also forgot to add, our operations are 'non-profit'
Guest
(Expert) 29 June 2013
Your object of registering an Association for your members of the particular trade is legal and it can be registered with the Registrar of Firms located in the Sub-Registrar's office of your area jurisdiction. The other way is you may register under sec.25 of the Companies Act, 1956. Under the latter category, you may contact a good Company-side lawyer, who can prepare Memorandum and Articles of Association wherein you can design your own Clauses commensurate with the Companies Act. You may mention therein it is an Non Profit Organisation with no Authorised Capital Clause, etc., Once the registration is done, the Association will come into existence and after which you may get Licences under the State and Central Acts including Income-tax Act.
Mana
(Querist) 29 June 2013
Shri Gurunarayana Rao,
Many thanks to you for your valuable advice.
DILIP KUMAR AAGARWAL
(Expert) 29 June 2013
if it is an association then this association can be registered in office of firms,societies and non trading corporation as it is prevaling in West Bengal. Since it is trading concern so I feel you will not get any incometax exemption.Such exemtion are only allowed to charitable organisation.
Raj Kumar Makkad
(Expert) 29 June 2013
No more to add s you have rightly been advised.
