Scribd
Upload
3K views6 pages

Registration of An NGO in India

The document discusses the process for registering an NGO in India. There are three main types of legal structures an NGO can take: a trust, society, or Section 8 company. The registration process requires submitting documents like address proof, identity proof of members, and a memorandum of association. Benefits of registration include legal status, accountability for funds, and tax exemption. An NGO must also obtain other registrations and licenses like a PAN, GST registration, and shops and establishments license depending on its operations.

Uploaded by

Aman D Sharan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3K views6 pages

Registration of An NGO in India

The document discusses the process for registering an NGO in India. There are three main types of legal structures an NGO can take: a trust, society, or Section 8 company. The registration process requires submitting documents like address proof, identity proof of members, and a memorandum of association. Benefits of registration include legal status, accountability for funds, and tax exemption. An NGO must also obtain other registrations and licenses like a PAN, GST registration, and shops and establishments license depending on its operations.

Uploaded by

Aman D Sharan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Registration of an NGO in India

An NGO is a non-government organization with a charitable objective, for the betterment of


the society in general. It can be started as a Trust, a Society or a Non-Profit Company
[Section 8 Company], depending on the activity you wish to undertake.

In India, NGO is an umbrella term for all non-profit organizations including Trust, Society
and Section 8 Company. Other names for such not-for-profit organizations are "Sangathan",
"Sangh", "Sangam". Income tax exemption is available for all non-profit NGOs.

Laws in India applicable to an NGO

NGOs can be registered in India under any of the following laws:

a. Trust under Indian Trusts Act, 1882


b. Society under Societies Registration Act 1860
c. Section 8 Company under Companies Act, 2013

Why register an NGO in India?

Benefits

 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.

Essential documents for online society registration & trust 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.
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.

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.

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.

Application for registration of an NGO:

You can register the society in the registrar office at a state level or in the district magistrate
office or Registrar of society local office, at a district level. The registration process is
different in each state. While submitting the application form, you have to also submit the
memorandum of association (MOA), all members consent letters, authority letter that are
signed by all the society members, the president’s affidavit in Rs.20/- stamp paper and also
the declaration given by all committee members stating that the society fund will be utilized
for only its object and aim. The duplicate of these forms to be submitted along with a nominal
registration fee. Here, the MOA need not to be submitted in stamp paper.

Many NGOs feel immune to all forms of taxation because they exist as a non-


profit entity, but this is just a myth. The following section talks about important compliances
that an NGO is required to do to prove its genuine in accordance to the NGO Laws:

PAN

After registration of NGO with respective Authority, the first thing is to apply for PAN of the
NGO. It is mandatory to apply for the PAN after registration of an NGO.

Registration under section 12A of the Income Tax Act

The registration of NGO under Section 12A is necessary for getting some benefits of
taxation. However, section 12A certificate is not a mandatory registration. The main reason
for getting this registration under section 12A is to get the benefit of exemption from the
Income Tax on the income of the NGO if all the rules and regulations laid down in this
section are fulfilled.

Registration under section 80G of the Income Tax Act

Even the registration under this section is not mandatory. However, to give the benefit of
50% or 100% exemption on the donations to the donors, NGO should get the registration
under section 80G of the Income Tax Act. It is indirectly an advantage to NGOs to raise
funds.

FCRA Registration

The NGOs get many opportunities to receive Foreign Funds for the NGO missions once
completing the NGO registration process. Post which the registration with the FCRA
department, Ministry of Home Affairs is essential. Without FCRA registration, NGO cannot
receive any kind of foreign donation or funds.
TAN

During the functioning of NGOs at any point of time, if NGOs become liable to remove the
tax from a source, it has to first apply for TAN.

GST Registration

If the NGO is providing services like research activity or consultancy work etc. and if the
gross revenue from such work crosses the basic exemption limit of GST, then NGO has to
first apply for the GST.

Professional Tax

Professional Tax is the liability of an NGO to deduct from the pay of an employee and
deposit to the Government. It is a state government thing and thus different states of India
having different rules and regulations for Professional Tax.

Retirement Benefit

Retirement benefits like Provident Fund, Gratuity, ESIC etc. are applicable to the NGO when
it develops and the size of employees is more than the prescribed limit in these acts.

Shops and Establishment License

According to the Indian NGO laws, if an NGO employs any individuals in their office to
carry out any work pertaining to the NGO, then the said NGO shall obtain a license under the
Shops and Establishments Act.

ANIMAL WELFARE ORGANISATIONS

Prevention of cruelty to animals Act, 1960 permits the formation of animal welfare
organization through section ((g) of the Act.
FINANCIAL ASSISTANCE FROM AWBI

Animal welfare organizations can approach Animal Welfare Board of India for recognition
and final assistance. There are certain guidelines for the recognition of an Animal Welfare as
an NGO.

There are two types of animal welfare organisations:

 SPCA- society for the prevention of cruelty to animals


 AWO- Animal welfare organisations in general

Both have different aims and objectives.

You might also like