+91 9828123489
+91 9828123489
help@vakilkaro.co.in
Registering an NGO is a crucial step if you want to make a meaningful impact on society and serve the underprivileged. Non-profit organizations or NGOs have a long history of working towards the betterment of communities and addressing various social, economic, and humanitarian issues. If you are considering starting an NGO, registering it offers several significant advantages:
- Legal Recognition: Registering your NGO provides legal recognition and legitimacy to your organization. It establishes your NGO as a separate legal entity, distinct from its members or founders, ensuring protection from potential legal liabilities.
- Credibility and Trust: Official registration enhances the credibility and trustworthiness of your NGO in the eyes of donors, partners, and the public. It demonstrates that your organization is committed to transparency, accountability, and adhering to legal and regulatory standards.
- Access to Funding: Many donors, governments, and funding agencies require NGOs to be registered to be eligible for grants and financial support. Registration opens doors to funding opportunities that can help sustain and expand your NGO's initiatives.
- Tax Exemptions: Registered NGOs often qualify for tax exemptions or benefits, allowing them to channel more resources towards their mission. Tax benefits can attract more donors, as contributions to registered NGOs may be tax-deductible for donors in some countries.
- Partnerships and Collaborations: Governments, other NGOs, and international organizations prefer to collaborate with registered NGOs due to their legal status and accountability. Registration can facilitate partnerships that lead to greater collective impact.
- Legal Advantages: Registration offers legal protection to the organization's name, logo, and intellectual property. It prevents others from using your NGO's identity for their gain, safeguarding your organization's reputation and brand.
- Official Representation: Registered NGOs may have the opportunity to participate in official forums, consultations, and decision-making processes related to their areas of expertise or advocacy.
- Recruitment and Volunteer Engagement: Registered NGOs are often perceived as more reliable and stable, making them attractive to potential volunteers and team members. A strong legal foundation can help attract skilled and passionate individuals to join your cause.
- Long-Term Sustainability: Formal registration strengthens an NGO's ability to plan for the long term. It can instill confidence in donors and supporters, encouraging them to commit to supporting the organization over an extended period.
- Public Visibility: Registration information is typically publicly accessible, which can increase your NGO's visibility and reach. It allows interested parties, potential beneficiaries, and donors to find your organization more easily.
In conclusion, registering an NGO is essential for gaining legal recognition, credibility, access to funding, and partnerships. It provides a strong legal foundation for your organization to operate ethically and transparently, ensuring sustainability and success in your mission to bring positive change to society.
Forming a Non-Governmental Organisation
To form a Non-Governmental Organisation (NGO) in India, you have the option to register it under different legal structures, namely, Company under Section 8 of the Companies Act 2013, Society under the Society Registration Act 1860, or Trust. Each registration type has its own advantages and requirements. Here's a brief overview of each:
- Company - Section 8 Company:
- Objective: A Section 8 Company is registered to promote science, art, education, sports, and social welfare. The profits earned by the NGO cannot be distributed among its members but are reinvested to fulfill its objectives.
- Advantage: A Section 8 Company is a popular choice for larger NGOs with a broader scope and long-term vision. It provides credibility and access to funding opportunities.
- Registration Process: The registration process for a Section 8 Company involves filing the necessary documents with the Registrar of Companies (RoC) and obtaining approval from the Central Government.
- Society:
- Objective: An NGO can be registered as a Society under the Society Registration Act 1860. Societies are more effective in the long run and can include military orphan funds, public museums, and art galleries.
- Advantage: Societies are well-suited for smaller community-based NGOs and organizations with a focus on cultural, educational, or charitable activities.
- Registration Process: The registration process for a Society involves preparing a Memorandum of Association and Rules & Regulations and submitting them to the Registrar of Societies in the state where the NGO will operate.
- Trust:
- Objective: An NGO can be registered as a Trust. Trusts are separate legal entities and are commonly used for charitable and philanthropic activities.
- Advantage: Trusts are relatively easier to form and manage, making them suitable for smaller NGOs and family foundations.
- Registration Process: To register a Trust, a Trust Deed is prepared, and it takes around two days to one week to complete the documentation process and form the Trust.
Regardless of the type of NGO registration, it is mandatory to register the organization to avail of the privileges and legal recognition. The requirement for registration may vary based on the specific laws and regulations of the state in which the NGO operates.
Preparing the Documents for NGO Registration
Preparing the necessary documents for NGO registration is a crucial step in the process. These documents provide essential information about the NGO's objectives, governing body, and other relevant details. Here are the key documents required for NGO registration in India:
- Name of the NGO: Choose a unique and appropriate name for the NGO. The name should reflect the organization's mission and objectives.
- Address Proof: Provide valid address proof of the registered office of the NGO. This could include utility bills, lease agreements, property tax receipts, or any other relevant document.
- Objective and Mission of the NGO: Clearly outline the objectives and mission of the NGO. This document should state the specific social, environmental, or humanitarian causes the NGO intends to address.
- Memorandum of Association (MOA): For NGOs registered as Societies, prepare the Memorandum of Association. It should contain the rules, regulations, and governing principles of the organization.
- Rules & Regulations: For Society registration, prepare a document containing the Rules & Regulations that outline the internal management and functioning of the NGO.
- Trust Deed: For NGOs registered as Trusts, prepare the Trust Deed, which defines the trust's objectives, rules, and regulations, as well as the names and details of the trustees.
- Section 8 Company Documents: For NGOs registered as Section 8 Companies, prepare the Memorandum and Articles of Association, which detail the company's objectives, scope of activities, and governance structure.
- Details of the Committee Members: Provide complete information about the members of the governing committee or board, including their names, addresses, occupations, and contact details.
- Human Resources and Staffing Information: Outline the details of the staff or volunteers involved in the NGO's activities, including their roles and responsibilities.
- Notarization and Attestation: Some documents may require notarization or attestation by a notary public or other relevant authorities to verify their authenticity.
- No Objection Certificate (NOC) (if applicable): If the NGO's registered office is a rented or leased premises, obtain a No Objection Certificate from the property owner.
It is crucial to ensure that all the required documents are accurate, complete, and in compliance with the relevant laws and regulations. Properly preparing these documents will facilitate a smooth and successful NGO registration process, enabling your organization to focus on its mission and goals of making a positive impact on society.
Different Laws Governing NGO Registration
NGO registration in India is governed by different laws depending on the legal structure chosen for the organization. Here are the key laws that apply to each type of NGO registration:
- Section 8 Company Registration: NGOs that choose to register as Section 8 Companies are governed by the Companies Act, 2013, and the rules and regulations under it. Section 8 of the Companies Act specifically pertains to the formation and regulation of companies for promoting charitable, scientific, artistic, educational, and social welfare objectives. These companies are not formed for profit, and any surplus generated is reinvested in furthering the organization's objectives.
- Trust Registration: NGOs registering as Trusts are governed by the Indian Trusts Act, of 1882. The Indian Trusts Act provides guidelines for the creation, administration, and dissolution of private trusts. The Trust Deed outlines the objectives and operations of the Trust, and trustees are responsible for managing and overseeing the Trust's activities.
- Society Registration: NGOs choosing to register as Societies are governed by the Societies Registration Act, of 1860. The Act provides provisions for the registration and regulation of societies involved in charitable, literary, scientific, or any other purpose of public interest. Societies typically have a governing body or committee that manages their affairs and operations.
It is essential for NGOs to adhere to the specific laws and regulations applicable to their chosen legal structure. Each law has its own set of requirements and procedures for registration, and compliance with these laws ensures the legal recognition and smooth functioning of the NGO.
Additionally, NGOs must also comply with various other laws and regulations depending on their activities, such as tax laws, labor laws, fundraising regulations, and foreign funding regulations (FCRA) for receiving foreign contributions, if applicable.
What are the Benefits to register an NGO in India?
Registering an NGO in India offers several significant benefits that enhance its credibility, legal recognition, and access to various opportunities. Here is a concise overview of the advantages of formal NGO registration:
- Separate Legal Entity: Registration grants the NGO the status of a separate legal entity, distinct from its members or founders. This provides legal protection and limited liability to its members.
- Legitimacy and Credibility: Formal registration gives the NGO legitimacy and credibility, instilling trust and confidence among donors, partners, and the public.
- 12AA Registration with Income Tax Department: NGO registration is a prerequisite for applying for 12AA registration with the Income Tax Department, enabling the NGO to avail of tax exemptions on its income.
- Tax Exemptions: Registered NGOs often qualify for tax exemptions on donations and income, making them more attractive to donors. Contributions to registered NGOs may be tax-deductible for donors.
- 80G Deduction and FCRA Approval: Registration is essential for applying for 80G Deduction, allowing donors to claim tax benefits on their donations, and FCRA (Foreign Contribution Regulation Act) approval, enabling the NGO to receive foreign contributions legally.
- Enhanced Donor Approach: Registration provides credibility, enabling the NGO to approach prospective donors or institutions with confidence, increasing fundraising opportunities.
- Differentiation from Unregistered Entities: Registration sets the NGO apart from unregistered entities, providing a distinct identity and recognition in the social sector.
- Transparency and Accountability: Registered NGOs are expected to maintain transparency and accountability in their operations, increasing donor confidence.
- Access to Government Resources: Some government initiatives may provide land at concessional rates for NGOs engaged in specific social causes, fostering their work.
- Expertise and Collaboration: Registration allows the NGO to collaborate with different stakeholders, including experts and professionals from outside, enhancing its impact and outreach.
- Public Recognition: A registered NGO gains recognition and credibility in the eyes of the public, facilitating the approach to donors and beneficiaries.
How to Register an NGO in India with Vakilkaro
To register an NGO in India with Vakilkaro, follow these steps:
- Consultation: Schedule an initial consultation with Vakilkaro to discuss your NGO's objectives and legal structure.
- Legal Guidance: Vakilkaro's experts will guide you in selecting the appropriate registration type (Trust, Society, or Section 8 Company).
- Document Preparation: Vakilkaro will assist in preparing all necessary documents for registration.
- Name Search: Vakilkaro will conduct a name search and reserve the name for your NGO if required.
- Online Application: Vakilkaro will help file the registration application online with the relevant authorities.
- Compliance: Ensure legal compliance throughout the process, including notarization and attestation of documents.
- Tax Exemption: Vakilkaro will assist in obtaining 12A and 80G certificates for tax exemptions.
- Updates: Receive timely updates on the status of your application.
- Final Registration: Once approved, you'll receive the Certificate of Registration for your NGO.
With Vakilkaro's support, your NGO registration process will be smooth and efficient, allowing you to focus on making a positive impact on society.
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+91 9828123489
help@vakilkaro.co.in