AOP (Association of Persons) is a group of persons who join together for a common purpose to earn income. BOI (Body of Individuals) is similar but specifically refers to a group of individuals (not including companies or firms). Both are recognized entities under Income Tax Act for tax purposes. Common examples include joint ventures, clubs, societies, co-ownership arrangements, and group business activities.

AOP & BOI Registration India | Association of Persons & Body of Individuals from ₹4,999

What is AOP & BOI?

Understanding Association of Persons and Body of Individuals under Indian Income Tax Act

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Association of Persons (AOP)

AOP is a group of persons (individuals, companies, firms, or any combination) who join together for a common purpose to earn income. It's not a legal entity but a taxable entity recognized under Income Tax Act.

Key Features:

✓ Group of any persons
✓ Common business purpose
✓ Voluntary association
✓ Separate PAN required

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Body of Individuals (BOI)

BOI is specifically a group of individuals (natural persons only, not companies or firms) who come together for earning income. It's similar to AOP but restricted to individuals only.

Key Features:

✓ Only individuals
✓ Joint income purpose
✓ Flexible structure
✓ Simple compliance

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Common Examples

AOP/BOI is commonly used for:

✓ Joint property ownership
✓ Club memberships
✓ Society activities
✓ Joint ventures
✓ Co-ownership of business
✓ Group investments
✓ Community projects
✓ Cooperative societies

🎯 When Should You Form AOP/BOI?

Joint Property Rental: Multiple people owning property and earning rental income together
Temporary Joint Ventures: Coming together for specific projects without forming a formal company
Club/Society: Operating a club, society, or community group with collective income
Co-ownership Business: Running a business jointly without partnership deed
Group Investments: Pool investments and share returns among members
Professional Groups: Doctors, lawyers, consultants working together on projects

Call us at +91 78892 57045 to know if AOP/BOI is right for you!

Benefits of AOP & BOI Registration

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Simple Formation

No complex registration procedures. Can be formed with simple deed or agreement. No ROC filing or extensive documentation required.

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Tax Benefits

Tax deductions available under various sections. Income distributed to members is taxed at individual level. Better tax planning opportunities.

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Legal Recognition

Recognized taxable entity under Income Tax Act. Can obtain PAN card, open bank account, and conduct business activities legally.

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Flexible Structure

Members can join or leave easily. No mandatory audit for small income. Suitable for temporary or project-based collaborations.

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Lower Compliance

Simpler compliance compared to companies. No mandatory ROC filings. Audit required only if income exceeds specified limits.

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Business Operations

Can open bank account, get GST registration, file ITR, and conduct business transactions in AOP/BOI name.

AOP/BOI Registration Process

Simple 5-step process to register your AOP/BOI in 7 days

Consultation

Discuss your requirements, number of members, purpose, and income sharing structure

Documentation

Prepare AOP/BOI deed, member agreement, and collect required documents from all members

Deed Execution

Finalize and execute the AOP/BOI deed with signatures of all members and notarization

PAN Application

Apply for PAN card for AOP/BOI with Income Tax Department using Form 49A

Additional Registrations

Complete TAN, GST registration, bank account opening, and start operations

📋 Documents Required for AOP/BOI Registration:

From All Members:

PAN card of all members
Aadhaar card / ID proof
Address proof (utility bill, rental agreement)
Passport size photographs
Email ID and mobile number

For AOP/BOI:

Proof of registered address (if different from members)
Bank statement or address proof for AOP/BOI address
Details of profit sharing arrangement
Nature and purpose of association

Feature	AOP/BOI	Partnership	Private Limited
Formation Cost	₹4,999 - ₹9,999	₹7,999	₹14,999
Registration Act	Income Tax Act	Partnership Act	Companies Act
Legal Status	Tax entity (not legal entity)	Legal entity	Separate legal entity
Formation Document	Simple deed/agreement	Partnership deed	MOA/AOA
ROC Filing	Not required	Not required	Mandatory
Audit Requirement	If income > ₹50L	If turnover > ₹1Cr	Always mandatory
Compliance Level	Low to Medium	Low to Medium	High
Liability	Unlimited (members)	Unlimited (partners)	Limited to capital
Suitable For	Joint ventures, clubs, temporary projects	Ongoing businesses	Startups, funding
Duration	Can be temporary	Ongoing until dissolved	Perpetual
Flexibility	Very flexible	Flexible	Rigid structure

Common Use Cases for AOP & BOI

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Joint Property Ownership

Multiple family members or friends owning property together and earning rental income. AOP allows proper tax filing and income distribution.

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Temporary Joint Ventures

Businesses coming together for specific projects without forming a formal company. Ideal for construction, real estate, or consulting projects.

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Sports & Social Clubs

Cricket clubs, tennis clubs, cultural societies collecting membership fees and organizing events with collective income.

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Professional Groups

Doctors, lawyers, architects, or consultants collaborating on projects and sharing fees without formal partnership.

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Residential Societies

Housing societies collecting maintenance, managing common facilities, and earning income from various sources.

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Investment Groups

Friends or family pooling money for investments in stocks, mutual funds, or property and sharing returns proportionally.

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Cultural Associations

Drama groups, music bands, art collectives earning from performances, exhibitions, and events.

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Agricultural Cooperatives

Farmers coming together for collective farming, marketing agricultural produce, and sharing profits.

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Business Collaborations

Entrepreneurs collaborating on business ideas, sharing resources and profits without formal company structure.

AOP/BOI Compliance Requirements

Understanding ongoing compliance and filing obligations

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Income Tax Return

Annual ITR Filing

AOP/BOI must file income tax return annually if total income exceeds basic exemption limit. ITR-5 form is used for AOP/BOI filing.

✓ Due date: 31st July
✓ Form: ITR-5
✓ Tax rate: Slab rates or 30%

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Audit Requirements

When is Audit Mandatory?

Tax audit under Section 44AB is mandatory if gross receipts/turnover exceeds specified limits.

✓ Business: Turnover > ₹1 Cr
✓ Profession: Gross receipts > ₹50L
✓ Presumptive: Special cases

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GST Compliance

If GST Registered

If AOP/BOI has GST registration, regular GST returns filing is mandatory.

✓ GSTR-1: Monthly/Quarterly
✓ GSTR-3B: Monthly
✓ GSTR-9: Annual return

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TDS Compliance

TDS Deduction & Filing

If AOP/BOI makes specified payments, TDS must be deducted and quarterly returns filed.

✓ TAN registration required
✓ Quarterly TDS returns
✓ Form 16/16A issuance

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Books of Accounts

Record Maintenance

Proper books of accounts must be maintained as per Income Tax Act requirements.

✓ Cash book
✓ Ledger accounts
✓ Bank statements
✓ Bills and vouchers

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Other Compliances

Additional Requirements

Depending on nature of activities, additional registrations and compliances may be needed.

✓ Shop & Establishment
✓ Professional Tax
✓ Labor licenses
✓ Trade licenses

⚠️ Important Compliance Notes:

AOP/BOI is taxed as a separate entity. Tax rate is either 30% flat or individual slab rates depending on circumstances
If income is distributed to members, members must include their share in their individual ITR
Advance tax payments required if tax liability exceeds ₹10,000
Penalty for late ITR filing: ₹5,000 (₹1,000 if income < ₹5L)
We provide complete compliance support and timely reminders for all due dates

Frequently Asked Questions

What is AOP and BOI?

AOP (Association of Persons) is a group of persons (individuals, companies, firms, or any combination) who join together for a common purpose to earn income. BOI (Body of Individuals) is similar but specifically refers to a group of individuals only (natural persons). Both are recognized taxable entities under the Income Tax Act. Common examples include joint property ownership, clubs, societies, joint ventures, co-ownership of business, and group investments. AOP/BOI is not a legal entity but a tax entity requiring separate PAN card.

How much does AOP/BOI registration cost?

AOP/BOI registration costs ₹4,999 for basic package including deed drafting, agreement preparation, and PAN card application. The complete package costs ₹9,999 and includes PAN card, TAN registration, GST registration, bank account opening support, and first year ITR filing support. All packages include complete documentation, legal consultation, and ongoing compliance advisory. There are no hidden charges.

What is the difference between AOP and Partnership?

AOP is a tax entity recognized under Income Tax Act formed with simple deed or agreement, suitable for temporary arrangements and joint ventures. Partnership is a legal entity registered under Partnership Act with formal partnership deed, suitable for ongoing businesses. AOP has simpler formation and can include any persons (individuals, companies, firms), while Partnership has only individual partners. AOP can be temporary or project-specific, while Partnership is generally for ongoing business. AOP has lower compliance compared to Partnership. Both have unlimited liability for members/partners.

Is PAN card mandatory for AOP/BOI?

Yes, PAN card is mandatory for AOP/BOI if they have taxable income, need to file income tax returns, or conduct financial transactions. PAN is required for opening bank accounts in AOP/BOI name, GST registration, TDS compliance, and most business activities. We help you obtain PAN card for AOP/BOI by filing Form 49A with Income Tax Department along with AOP/BOI deed and member documents. PAN is usually issued within 15-20 days of application.

How is AOP/BOI taxed?

AOP/BOI is taxed as a separate entity. Tax rate is either 30% (plus surcharge and cess) flat rate, or maximum marginal rate applicable to members if their individual shares are determinate. If income is distributed to members after paying tax at AOP level, members don't pay tax again on that income. If income shares are known and determined in AOP deed, members can include their share in individual ITR and pay tax at their applicable slab rates. Proper tax planning can result in significant tax savings. We provide complete tax advisory for optimal tax structure.

Can AOP/BOI open a bank account?

Yes, AOP/BOI can open a bank account in its name. Required documents include: PAN card of AOP/BOI, AOP/BOI deed/agreement, PAN and Aadhaar of all members, address proof of AOP/BOI registered address, board resolution for authorized signatories, and KYC documents of authorized signatories. Most banks accept AOP/BOI accounts. We provide complete support for bank account opening including documentation and liaison with banks.

Is GST registration mandatory for AOP/BOI?

GST registration is mandatory for AOP/BOI if: aggregate turnover exceeds ₹40 lakhs (₹20 lakhs for special category states), engaged in inter-state supply of goods/services, or engaged in certain specified activities (e-commerce, etc.). If turnover is below threshold and no mandatory criteria apply, GST registration is optional. We help with GST registration for AOP/BOI including application filing, documentation, and initial compliance setup.

What documents are needed for AOP/BOI registration?

Required documents include: PAN card of all members, Aadhaar card/ID proof of all members, address proof of all members (utility bill, rental agreement), passport size photographs of all members, email ID and mobile number of all members, proof of registered address for AOP/BOI (if different from members' address), bank statement or utility bill for AOP/BOI address, and details of profit sharing arrangement. We help prepare the AOP/BOI deed/agreement with all necessary clauses as per Income Tax Act requirements.

Can foreigners be members of AOP/BOI?

Yes, foreign nationals and NRIs can be members of AOP/BOI in India. However, additional documentation is required including: valid passport, valid visa (for foreign nationals in India), PAN card (Indian PAN or application for PAN), proof of foreign address, and FEMA compliance if applicable. For certain activities involving foreign members, RBI approval or intimation may be required. We handle all documentation and compliance for AOP/BOI with foreign/NRI members.

How to dissolve an AOP/BOI?

To dissolve an AOP/BOI: Pass dissolution resolution with consent of all members, file final income tax return marking it as final return, close bank accounts, cancel GST registration (if applicable), surrender PAN card and TAN, distribute assets/liabilities among members as per deed, and prepare dissolution deed documenting the closure. Final ITR must be filed within specified time. We provide complete support for AOP/BOI dissolution including all documentation, tax clearances, and final compliance filings.

AOP & BOI Registration Services