How To Register NGO in India?
NGO stands for Non-Government Organization, which is a non-profitable organization formed by a group of activists, social workers, and voluntarily working for a good charitable cause.
The main purpose of NGO registration is to uplift the underprivileged and provide facilities like food, education, shelter, etc. NGOs are primarily engaged in environmental activities, social, cultural, and legal activities without any profit.
It is highly recommended if anyone wants to establish an NGO to betterment any specific areas of society. In this blog, we will discuss the NGO Registration process in India and its benefits.
Laws Governing NGO Registration in India
The following are the three possible ways for NGO Registration in India.
- Society Registration is governed by the Societies Registration Act of1860.
- Trust Registration is governed by the Indian Trust Act of 1882.
- Section 8 Company Registration is governed by the Companies Act of 2013.
Difference between a Society, Trust, and Section 8 Company
Society | Trust | Section 8 Company |
| · It is a group of individuals who come together to promote any charitable purpose.
· The cost Factor is Medium. · A minimum of 7 members are required to form a society, and there are no guidelines on the maximum number of members. | · It’s an agreement between parties where one party holds the property owner for the benefit of another party.
· The cost factor is low. · A minimum of three members are required to form a trust, and the maximum limit of members is 21. | · The principal intention of forming a Section 8 Company is to promote charity, religion, and social welfare.
· The cost factor is high. · A minimum of two Shareholders or Directors is required to form a Section 8 Company. |
What are the Benefits of NGO Registration in India?
The following are the benefits of registering an NGO as a Trust, Society, and Section 8 Company.
Benefits of NGO Registration as a Trust
- Several tax benefits in Service Tax, Income Tax, and Entertainment Tax.
- Benefits of 80G certificate under the Income Tax Act.
- An NGO registered can use the word “Govt. Regd.” Or ‘Regd.’ who comes under the Trusts Act.
Benefits of NGO Registration as a Society
Society registered as per the provisions Society Registration Act, 1860, can avail the following benefits:
- Society Registration provides legal protection in which no other company can use personal assets, company name, etc.
- An individual can open the bank account in the name of the society.
- It provides the right to enforce legal proceedings.
- Society registration enables us to raise funds from outsiders.
Benefits of NGO Registration as a Section 8 Company
- Tax Exemption
- This registration is more trustworthy than any other form of Non-Profit organization like Society and Trust Registration.
- Exemption on Stamp duty
- There is no prescribed limit for any minimum capital requirement.
What are Documents required for NGO Registration?
The following are documents required for NGO Registration as a Trust:
- Obtain Trust Deed because it is the most important document for Trust Registration.
- Identity proof of the trustees such as Aadhar Card, Passport, Voter ID, etc.
- Photographs of all the parties of the Trust Deed.
- PAN Card of all the parties involved in the formation of the Trust
- Electricity bill or water bill for proof of the registered office address.
The following are the documents required NGO Registration as a Society:
- Residence proof (Aadhar Card, Passport, Driving License, and so on) of all society members.
- PAN Card of all the proposed members of the society.
- Memorandum of Association (MoA) and Articles of Association (AoA).
- A copy of the registered office’s rental agreement along with a No Objection Certificate (NOC) from the landlord if the premise is on rent.
- List of all the members in the society along with their signature.
Following are the documents required for NGO Registration as a Section 8 Company:
- Aadhar card and PAN card of all the directors.
- Address Proof (Aadhar card, electricity bill, water bill, etc.).
- In the case of a rented office, the rental agreement along with the No Objection Certificate (NOC) from the landlord.
- Form DIR 2.
- DSC (Digital Signature Certificate) of all the directors.
- DIN (Director Identification Number).
- MOA and AOA.
- Income and Expenditure statement.
Procedure for NGO Registration in India
An NGO can be registered in three possible ways in India. Below-mentioned is the procedures for registering an NGO as a Trust, Society, and Section 8 Company.
Trust Registration
Before registering an NGO as a Trust, an applicant entity needs to fulfill a few pre-requisites. Following is the checklist of pre-requisites an applicant has to fulfill:
- 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 registering an NGO 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 is required to complete the following five clauses to form the Memorandum of the Society:
- Objects Clause.
- Capital Clause.
- Association Clause.
- Liability Clause.
- Name Clause.
Section 8 Company Registration
The process of registering an NGO as a section 8 company is similar to any other company’s registration under the Companies Act of 2013.
All an applicant’s need is a DSC (Digital Signature Certificates), Memorandum of Association (MoA), and Articles of Association (AoA). The following are the steps to form a Section-8 Company.
Conclusion
NGO stands for Non-Government Organization, which is a non-profitable organization formed by a group of activists, social workers, and voluntarily working for a good charitable cause.
The main purpose of NGO registration is to uplift the underprivileged and provide facilities like food, education, shelter, etc. NGOs are primarily engaged in environmental activities, social, cultural, and legal activities without any profit.
