Things you need to know before starting an NGO in India

NGO Registration provides legal authority to an organization and makes it more reliable in the eyes of the contributors and law. The foremost idea of a Non-Profit Organization is to boost the progress of the underprivileged section of the society. The NGOs do not have any intention of making profits, or even if they make profits, that profit is used to complete the goals of the NGO; for this reason, tax exemption is available for all NGOs in India. Non-Profit Organizations in India are first and foremost involved in legal, social, cultural, and environmental activities without making a profit. There are three legal ways for obtaining NGO Registration Certificate in India:

• An NGO can be registered as a Trust under the provisions of the Indian Trusts Act of 1882.

• An NGO can be registered as a society as per the provisions of the Societies Registration Act of 1860.

• An NGO can be registered as a Section 8 Company in India under the Companies Act of 2013.

What are the benefits of an NGO Registration Certificate in India?

The following are the benefits of obtaining an NGO Registration certificate in India in the form of Trust Registration, Society Registration, and Section 8 Company Registration.

Benefits of registering an NGO as a Trust:

• Several tax benefits such as exemption in Income Tax, Service Tax, and Entertainment Tax.

• After trust registration, an organization can avail advantages of the 80G certificate under the Income Tax Act.

• An NGO (Non-Government Organization) registered as a trust under the Indian Trust Act can use the word "Govt. Regd."

Benefits of registering an NGO as a Society:

NGOs (Non- Government Organizations) registered as a society under the provisions of the Society Registration Act of 1860 can avail all the following benefits:

• Society Registration offers protection in which no other company can use the society’s name, assets, etc.

• The applicant can open the bank account in the name of the society.

• NGO registered as a society as per the provisions of the Society Registration Act of 1860 offers the right to enforce legal proceedings.

• Society registration offers the benefit of raising funds from outsiders.

Benefits of registering an NGO as a Section 8 Company:

• Registering an NGO as section 8 company provides an exemption on income tax. Not only to the NGO but to the people who are offering a donation to the NGO.

• Section 8 company registration is more reliable than any other Non-Government Organization (NGO) such as Society and Trust Registration.

• Registering an NGO as section 8 company provides exemption on Stamp duty.

• No minimum capital is required for registering an NGO as section 8 company.

What are the documents required for obtaining an NGO Registration certificate in India?

Before registering an NGO as Section 8 Company, Trust or as a Society, the applicant has to ensure that all the essential documents are available at the time of NGO registration:

Documents required for the Trust Registration:

The following are the necessary documents that are required for registering an NGO as a Trust under the Indian Trust Act:

• The applicant has to submit utility bills such as telephone bills, electricity bills, water bills, etc. The utility bills should be the latest (not older than two months).

• The applicant has to provide Identity proof such as Voter Id, Driving License, Aadhar Card, Passport, etc.

After the payment, it takes around 1-2 weeks to complete the online registration process under the Indian Trust Act of 1882. Also, on the scheduled date for registration, all the Trust parties should be present in the Registrar’s Office for the Trust registration.

Documents required for Society Registration:

The following are the essential documents required for registering an NGO as a society under the Societies Registration Act of 1860:

• Name of the Society.

• The applicant has to provide address proof of society's registered office, such as the latest telephone bill, electricity bill, water bill, etc.

• The applicant has to provide identity proof of all the members.

• The applicant has to provide two copies of the MOA (Memorandum of Association) and By-laws of the society.

It takes around 1-2 weeks for drafting the Memorandum of Association and By-laws of the society once the applicant completes the payment. After that, it takes around 3 to 4 weeks for the Society registration.

Documents required for Section 8 Registration:

The following are the essential documents required for registering an NGO as a Section 8 Company:

• Name of the company.

• Address proof of the office, such as the latest electricity bill, house tax receipt, water bill, etc.

• Identity proof of all the directors.

• MOA (Memorandum of Association) and AOA (Articles of Association) of the company.

It takes around 1-2 weeks to draft MOA and AOA of society once the applicant completes the payment. It takes about two months to complete the process of section 8 company registration.

Procedure for NGO Registration Certificate in India

In India, a Non-Government Organization can get registered in three different ways. The following are the different procedures for registering an NGO as a Section 8 Company, Trust, and Society.

Section 8 Company Registration

The process of obtaining an NGO registration certificate as a section 8 company is similar to the company's registration under the Companies Act, 2013. All an applicant is required is DSC, MoA, and AoA. An NGO can get registered as a section 8 company by following below-mentioned steps:

Trust Registration

For obtaining an NGO registration certificate as a Trust, the applicant entity must fulfil all the pre-requisites. The applicant has to fulfil the following checklist of pre-requisites to acquire Trust Registration:

• Registered Address and property of the Trust.

• Trust Name.

• One seller of the Trust.

• Objectives of the Trust.

• 2 Trustees of the Trust.

Society Registration

For obtaining NGO registration certificate as a society as per the provisions of the Society Registration Act, two essential things are:

• Rules and Regulations of a Society.

• Memorandum of Association (MOA)

An applicant has to complete the following clauses to form the Memorandum of the Society:

• Objects Clause.

• Capital Clause.

• Association Clause.

• Liability Clause.

Conclusion

NGO stands for Non-Government Organization; NGO Registration Certificate in India provides legal authority to an organization and makes it more reliable in the eyes of the contributors and law. The foremost idea of a Non-Profit Organization is to boost the progress of the underprivileged section of the society. There are three legal ways for obtaining NGO Registration Certificate in India.