An NGO is a non-governmental organisation that works to improve society via philanthropic endeavors. Depending on the business you want to engage in, it can be established as a Trust, Society, or Non-Profit Company. All nonprofit organisations, including Trust, Societies, and Section 8 Companies, are collectively called NGOs in India. Such nonprofit organisations are also known as "Sangathan," "Sangh," and "Sangam." All nonprofit NGOs are eligible for an income tax exemption.
A trust deed or memorandum of understanding (MoU) must be made to achieve NGO registration. Along with the organisation's goals and missions, the MOU includes the full name and location of the NGO.
We will assist you in making the best decision and guide you through NGO registration in India. Additionally, how to apply for online NGO registration.
Did you know? As of now, 151186 NGOs are enrolled in India.
What Do You Mean by NGO?
NGOs, or non-governmental organisations, are nonprofit corporations founded to aid the disadvantaged segment of society. It aims to promote a variety of concerns, including economic, cultural, legal, environmental, artistic, and scientific ones. They are run by residents on voluntary initiatives, as their name implies, and neither the Union nor the state governments are involved.
What Kind of NGOs Are Registered in India?
In India, one does not need to create a business or group to engage in social activities. However, good administration is crucial when someone wants to start a group that includes members, activities, and resources.
A specific set of guidelines must be followed to accurately manage NGOs (companies, Trusts, and Societies). An applicant must adhere to the numerous laws to register in any of the methods listed below.
- "The Indian Trust Act, 1882," Trust Registration
- "Societies Registration Act, 1860" Society Registration
- "The Companies Act, 2013" Section 8 Company Registrations
How are NGOs Classified in India?
NGOs are divided into the following tiers according to their classification:
- Based on the orientation level
- Based on the operation level
Based on the Degree of Orientation
- Orientation Toward Charity
- Service Mindedness
- Orientation to Participation
- Positivity Orientation
By The Operation Level
- Local Community Organization
- City-wide Institution
- Local NGOs
- Worldwide NGOs
NGO Registration in India
In India, there are three different ways to register an NGO: as a trust, society, or Section 8 company.
Trusts, sometimes known as charitable trusts, are one of the methods to register an NGO. The "trustor" or "settlor" creates the trust by transferring the resources to the "trustee" on their behalf and the benefit of a "beneficiary" on the other side. Trusts are established to assist and support the less fortunate segments of society.
A collection of people committed to advancing social welfare, the arts, literature, science, and practical knowledge can establish a society. In addition, groups aim to preserve public libraries, museums, and military orphan funds.
Section 8 Companies
A trust and a society are comparable to a Section 8 company. Promoting arts, science, business, sports, social welfare, spirituality, charitable giving, and environmental preservation are the goals of Section 8 companies. They have a Companies Act 2013 registration for charitable purposes and have more credibility with funders, government agencies, and other interested parties.
Three Different Ways to Register an NGO in India
If you want to register an NGO in India under the name of a society, you must follow these steps:
- For your NGO, pick a fitting name.
- To a Registrar of Societies of a State Government, you must provide two copies of each required document.
- If the authorities determine that all of your supplied paperwork are accurate, they will award you an NGO Registration Number and an Incorporation Certificate.
- Typically, it takes a month to complete issuing an incorporation certificate.
Section 8 Company Registration
- Choose a name that fits your nonprofit organisation and ensure it is distinct from any Limited Liability Partnerships or companies already registered. This suggested name has to be submitted for a reservation using the MCA portal's Reserve Unique Name feature. A maximum of two names may be submitted at once.
- The MOA and AOA of the organisation, projected P&L statement, an assertion of assets and liabilities, a short outline of the activity, etc., must be prepared once the name of the organisation has been authorised.
- Add the appropriate papers and the incorporation application to the SPICe Form as attachments.
- The Certificate of Incorporation (COI) & Licence is provided following accurate application verification. A Company Identification Number (CIN) and the Company's PAN and TAN numbers are included in this COI.
- Create the trust agreement.
- Select a fitting name for your nonprofit organisation.
- Establish the settler, at least two trustees, and the beneficiary with specificity.
- Create the MOA and bylaws, and complete a legal trust deed with all the necessary terms and provisions.
- Based on the amount of the assets transferred to the Trust, a Trust Deed must be signed upon stamp paper of appropriate value.
- A Trust Deed must also be ratified by the settlor, the trustees, and the local registration of the county where the NGO's registered office is situated.
Documents Required for NGO Registration and Eligibility Criteria
If an NGO is to be formed as just a private limited company, there must be a minimum of two directors. A minimum of three directors are necessary to form a public limited company. Two hundred members is the maximum allowed for a private limited business. For a public limited company, there is no member cap. If registering as a simple NGO, there is no cost.
The following are the requirements for NGO registration:
- (Voter ID, Aadhar card, etc.) as proof of identification
- Passport (required) (mandatory)
- Proof of residency (bills for electricity, telephone, mobile phones, or banks)
- Proof of Registered Office Address
- Documents proving ownership, such as a NOC, sale deed, and house tax receipt
- Two or more shareholders
- At least two directors
- Directors and Shareholders may be the same people
- There should be at least one member who resides in India
- There is no prerequisite amount of capital
- Income Tax PAN (mandatory)
NGO Registration Forms:
Here are some NGO registration form number along with its specific use:
Registering an NGO name
Applying for an NGO licence
An association memorandum
Signing the document
NGO Incorporation Application Form
Address of Registered Office Form
Advisory Board approval
Request for a DIN from the ROC
NGO Directors Appointment
Benefits of Registering an NGO in India
Below given are some of the benefits of registering an NGO in India:
- When an NGO registers, it gains legal standing and is given financial accountability.
- For instance, the money given to a charitable trust is accepted in its name and applied to its objectives.
- Assets from an unregistered firm may be obtained under anyone's name and used to one person's advantage.
- Our society's legal, social, and ethical norms are strengthened through NGO registration.
- The NGO must have a bank account in its name to function.
- A Trust, Society, or Section 8 Company should be registered to open an account.
- An NGO should register with Income Tax Authority to be eligible for tax exemption.
NGO registration is a simple process and can be done over the web. All necessary paperwork, including the MOA and bylaws, must be submitted for the registration procedure. Although trust & society NGOs are registered with the Registrar, only section 8 companies can access the online NGO Registration tool.
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