Overview
NGO registration is a profit that enables Nonprofit organizations to provide services to the public, often with the support of the government, corporations, individuals, or groups. It’s crucial for NGOs to comply with policy while serving the majority as a nongovernmental organization.
An NGO is a non-governmental organization that works to improve society at large through philanthropic endeavors. Depending on the activity you want to pursue, you can start it as a Trust, a Society, or a Non-Profit Company [Section 8 Company].
All non-profit organizations, including Trust, Societies, and Section 8 Companies, are collectively referred to as NGOs in India. Such non-profit organizations are also known as ‘Sangathan’, ‘Sangh’, and ‘Sangam.’ All non-profit NGOs are eligible for an income tax exemption.
These are occasionally mistaken with non-profitable businesses, which denotes a conventional company that is not turning a profit. True Auditor will assist you in making the best decision and will walk you through the full NGO company registration procedure.
There Are Three Types Of Ngos Widely Registered In India.
Trust
Trust registration refers to the process of legally establishing a trust in India. A trust is a form of non-profit organisation (NPO) that is created to provide assistance and support to specific causes, such as education, health care, and community development. The trust registration process is governed by the Indian Trusts Act, 1882, and is typically handled by a team of legal experts and professionals.
Society
Society registration refers to the process of forming a society under the Societies Registration Act, 1860. A society is a group of individuals who come together to achieve a common goal or objective. Societies are formed to promote charitable, religious, educational, scientific, literary, or social causes.
Section 8 Company
Section 8 Company is a type of non-profit organisation that is registered under Section 8 of the Companies Act, 2013. It is registered with the sole purpose of promoting commerce, art, science, religion, charity or any other useful object, and not for the purpose of making a profit. This type of company is also known as a Non-Profit Organisation or Non-Governmental Organisation (NGO).
What Is The Classification Of NGOs In India?
There are various classification of NGOs in India, here is the list:
By The Level Of Orientation
- Charitable Orientation
- Service Orientation
- Participatory Orientation
- Empowering Orientation.
By The Level Of Operation
- Community-Based Organisation
- City Wide Organisation
- National NGOs
- International NGOs.
Why Is NGO Registration Required?
- The organization gains credibility, and those who contribute money will be more likely to affiliate themselves with those NGOs that have registration because it lends an air of authenticity.
- A local NGOs operations may be able to develop with the aid of NGO company registration, which guarantees greater exposure for the organization.
- The range of both financial and human resources is expanded. The NGO will benefit because more volunteers will step forward.
- Register your business as an NGO in India in accordance with the 2013 Companies Act to receive a number of benefits for the company’s directors. NGOs are exempt from a number of taxes in India, which enables the business to save taxes and invest the money in further projects.
- Companies that have been recognised by the ITR filing return act of 1961 as NGOs are not prohibited from selling their assets or interest-earning claims.
- All businesses organised as NGOs under the ITR Act of 2013 are exempt from stamp duty, providing the business with additional opportunities to reduce its tax burden. The entire tax savings from the stamp duty are then used to promote the company’s philosophy.
Benefits Of NGO Registration
- A registered NGO gains the legal status and becomes accountable for the funds received. For instance, when an individual donates funds to a charitable trust, it is received under the name of the organization and used for the trust’s activities. In an unregistered firm, the assets can be received under anyone’s name and may be used for their own profit.
- An organization that is registered as an NGO reinforces the ethical, social and legal norms of our society.
- The basic requirement for running an NGO is to have a bank account under its name. In order to open an account, it is mandatory to be registered as a Trust, Society or Section 8 Company.
- The registration of an NGO is necessary to seek tax exemption from the Income Tax Authority.
Online NGO Registration Forms
Here are the NGO registration forms required:
- DIR 12 Appointments of Directors
- DIR 2 Consent of Directors
- DIR 3 Application to ROC to get DIN
- INC 1 Business name approval
- INC 12 Applications for License
- INC 13 Memorandum of Association
- INC 14 Declaration from a practising CA
- INC 15 Declaration from each person making the application
- INC 16 License to incorporate as NGO
- INC 22 Situation of Registered Office
- INC 7 Applications for Company’s Incorporation
- INC 8 Declarations
- INC 9 Affidavit from each director and subscribe
Documents Required For NGO Registration
Before a registered deed is delivered to an NGO, submission of specific documents is required.
Trust Registration
For the trust registration, the following papers are mandatory:
- A bill of electricity or water stating the address that needs to be registered.
- The identity proof of at least two members of the company. The proof can be:
- Voter ID
- Driving License
- Passport
- Aadhaar Card
Once the payment for the registration is done, it takes about 8 to 10 days for online registration to be completed under the Indian Trust Act – 1882. Before the deed becomes valid throughout the country, the settler has to deliver a presentation at the registrar’s office.
Note: On the scheduled date for registration, the Author of the Trust shall be present in the Register Office for registration
Society Registration
For a society registration, the following papers are essential:
- The name of the society.
- Address proof of the office.
Identity proof of all the nine members which can be:
- Driving License
- Copy of Passport
- Voter ID
- Aadhaar card
- Two copies of the Memorandum of Association and By-laws of the society.
Note:Once the payment for the registration is done, it takes about 8 to 10 days for drafting the MoA and By-laws of the Society. Thereafter it takes 21 to 30 days for the Society to be registered.
Section 8 Company:
For a Section 8 company registration, the following papers are essential:
- The name of the Company for approval.
- Address proof of the office. It can be electricity or water bill or house tax receipt.
- Identity proof of all the Directors which can be:
- Driving License
- Copy of Passport
- Voter ID
- Aadhaar card The Memorandum of Association and Articles of Association of the Company.
Note: Once the payment for the registration is done, it takes about 8 to 10 days for drafting the MoA and AoA of the Society. Thereafter it takes about 2 months for the entire Company registration to be completed.
Why True Auditor?
Consultation for selecting registration type
- We do a thorough consultation to understand which registration would suit you the best- NGO / Society/ Trust registration.
- We will inform you of all the documents required to check ngo registration online form.
- The final step is the formation of your NGO.
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