Importance of NGO Registration in India

Byenterslice

NGO stands for Non-Government Organization is a non-profitable organization, a group of activists, social workers, and voluntarily working for a good charitable cause. The main purpose of NGOs is to remove negativity and bring positivity in society. 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 for the betterment of any specific areas of society. In this blog, we will discuss the NGO Registration process in India and its benefits.

What are the different laws of NGO Registration in India?

There are 3 possible ways for the NGO Registration in India. Check the same below.

  • Society Registration: It comes under the “Societies Registration Act, 1860”.
  • Trust Registration: It comes under “The Indian Act, 1882”.
  • Section 8 Company Registration under “The Companies Act, 2013.

What is the difference between Society, Trust, and Section 8 Company Registration?

Society RegistrationTrust RegistrationSection 8 Company Registration·  It is a group of persons who come together to initiate any scientific/charitable purpose.· The cost Factor is Medium.· Minimum seven members required and the maximum is unlimited.·  It’s an agreement between parties where one party holds the ownership of the property for the benefit of another party.·   The cost factor is low.·  A minimum 3 and a maximum of 21 members are required.·  The main objective of Section 8 Company is to promote social welfare, charity, religion, and so on.·  The cost factor is high.·  Minimum 2 Shareholders/Directors Required.

Benefits of NGO Registration in India

Check the lists of benefits that comes under Trust Registration, Society Registration, and Section 8 Company Registration.

Benefits offered under Trust Registration

  • 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 offered under Society Registration

NGOs registered under the Society Registration Act, 1860, can avail all the benefits mentioned below.

  • Society Registration provides legal protection in which no other company can use your personal assets, company name, etc.
  • You can open the bank account on the name of the society.
  • It provides the right to enforce legal proceedings.
  • Society registration enables us to raise funds from outsiders.

Benefits offered under Section 8 Company Registration

  • Tax Exemption.
  • This registration is more trustworthy than any other form of Non-Profit organization like Society and Trust Registration.
  • Exemption of Stamp duty.
  • There is no prescribed limit for any minimum capital requirement.

Documents required for NGO Registration in India

Checklist of the documents required for Trust Registration is mentioned below

  • Obtain Trust Deed because it is the most important documents 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 each party of the Trust
  • Electricity bill or water bill for proof of the registered office address.

Checklist of documents required for Society Registration is mentioned below

  • Bring residence proof (Aadhar Card, Passport, Driving License, and so on) of all the members of the society.
  • Pan Card of all the members.
  • MOA (Memorandum of Association) and AOA (Articles of Association).
  • A photocopy of the registered office along with a NOC.
  • List of all the members in the society along with their signature.

Check the list of documents required for Section 8 Company Registration is mentioned below

  • PAN card and Aadhar card of all the directors.
  • Address Proof (Aadhar card, electricity bill, water bill, and so on).
  • In case of a rented office, bring the rent agreement and NOC.
  • Form DIR 2.
  • DSC (Digital Signature Certificate) of all the directors.
  • DIN (Director Identification Number).
  • MOA and AOA.
  • Income statement and Expenditure.

Procedure for NGO Registration in India – Trust Registration

Before the registration of a Trust, you need a few pre-requisites that an organization needs to form the trust. Here you can check the pre-requisites below.

  • Registered Address and property of the Trust.
  • Trust Name.
  • One seller of the Trust.
  • Objectives of the Trust.
  • 2 Trustees of the Trust.

Procedure for NGO Registration in India – Society Registration

For the registration of the Society NGO in India requires 2 important things:

  • Rules and Regulations of the Society NGO.
  • Memorandum of Association (MOA)

You will need to fill the five clauses to form the Memorandum of the Society.

  • Objects Clause.
  • Capital Clause.
  • Association Clause.
  • Liability Clause.
  • Name Clause.

Procedure for NGO Registration – Section 8 Company Registration

This registration process is similar to any other company’s registration in India. You all need DSC (Digital Signature Certificates), MOA and AOA. Below are the steps to form a Section-8 Company.

Conclusion

Most of the NGOs in India are structured around specific issues such as human rights, health issues and environmental issues. NGO provides analysis and helps to monitor international agreements. If anyone is looking to start an NGO, first you need to know what kind of NGO you want. It can be related to health issues, environmental issues, and so on. Then you can get the NGO Registration through a consultant.