When a company registers as a Non-Profit Organization (NPO), it has the aim of supporting arts, commerce, education, charity, environmental health, sports, science, study, social welfare, and religion, and it aims to use its profits or other income to achieve these goals.
The profits of an NPO cannot be used to pay dividends to its shareholders, it must be used to further charitable goals. These businesses receive a certificate of incorporation from the government and are required to follow the regulations set out by the government. If the obligations are not fulfilled it may result in the winding up of business on government orders. Let's connect with Onfiling for more details.
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