NGO Registration

NGO Registration Online – Overview

An NGO is a non-governmental organisation that works to improve society at large through philanthropic endeavours. Depending on the activity you want to pursue, you can start it as a Trust, a Society, or a Non-Profit Company [Section 8 Company].

All non-profit organisations, including Trust, Societies, and Section 8 Companies, are collectively referred to as NGOs in India. Such non-profit organisations are also known as ‘Sangathan’, ‘Sangh’, and ‘Sangam.’ All non-profit NGOs are eligible for an income tax exemption.

These are occasionally mistaken with non-profitable businesses, which denotes a conventional company that is not turning a profit. Vakilsearch will assist you in making the best decision and will walk you through the full NGO company registration procedure.

What are the Types of NGO Registration in India?

There are three types of NGOs widely registered in India.

Trust

Trust registration refers to the process of legally establishing a trust in India. A trust is a form of non-profit organisation (NPO) that is created to provide assistance and support to specific causes, such as education, health care, and community development. The trust registration process is governed by the Indian Trusts Act, 1882, and is typically handled by a team of legal experts and professionals.

Society

Society registration refers to the process of forming a society under the Societies Registration Act, 1860. A society is a group of individuals who come together to achieve a common goal or objective. Societies are formed to promote charitable, religious, educational, scientific, literary, or social causes.

Section 8 Company

Section 8 Company is a type of non-profit organisation that is registered under Section 8 of the Companies Act, 2013. It is registered with the sole purpose of promoting commerce, art, science, religion, charity or any other useful object, and not for the purpose of making a profit. This type of company is also known as a Non-Profit Organisation or Non-Governmental Organisation (NGO).

What Is the Classification of NGOs in India?

There are various classification of NGOs in India, here is the list:

By the Level of Orientation

Charitable Orientation
Service Orientation
Participatory Orientation
Empowering Orientation.

By the Level of Operation

Community-Based Organisation
City Wide Organisation
National NGOs
International NGOs.

Why Is NGO Registration Required?

The organisation gains credibility, and those who contribute money will be more likely to affiliate themselves with those NGOs that have registration because it lends an air of authenticity.
A local NGOs operations may be able to develop with the aid of NGO company registration, which guarantees greater exposure for the organisation.
The range of both financial and human resources is expanded. The NGO will benefit because more volunteers will step forward.
Register your business as an NGO in India in accordance with the 2013 Companies Act to receive a number of benefits for the company’s directors. NGOs are exempt from a number of taxes in India, which enables the business to save taxes and invest the money in further projects.
Companies that have been recognised by the ITR filing return act of 1961 as NGOs are not prohibited from selling their assets or interest-earning claims.
All businesses organised as NGOs under the ITR Act of 2013 are exempt from stamp duty, providing the business with additional opportunities to reduce its tax burden. The entire tax savings from the stamp duty are then used to promote the company’s philosophy.

Benefits of NGO Registration

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.

Eligibility to Start an NGO

If an NGO is to be incorporated as a private limited company, there must be a minimum of two directors.
In the case of incorporation as a public limited company, a minimum of three directors are necessary.
200 members is the maximum allowed for a private limited business.
For a public limited company, there is no member limit.
If registering as an NGO, there is no fee.

Documents Required for NGO 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:
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.

Note: 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.

Note: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:
Copy of Passport
Voter ID
Aadhaar card The Memorandum of Association and Articles of Association of the Company.

Note: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.

Process of NGO Registration in India

In India, for NGO registration process anybody is free to do social activities without forming an association or organization. But when an individual wants to create a group that involves volunteers, activities, and resources, it becomes important to have proper management in place. To run such companies, trusts and Societies in the correct manner, a certain set of rules need to be followed.

How to Raise Funds for NGOs?

There are several ways to raise funds for an NGO, including:

This involves soliciting small donations from a large number of people through online platforms.
NGOs can apply for grants from various sources like government agencies, private foundations, and international organizations that fund social causes.
They can partner with companies that share their values to sponsor their programs and donate to their causes.
Organizing fundraising events like charity walks, concerts, and auctions, or online campaigns like Giving Tuesday can help attract donors and raise funds.
NGOs can appeal to individuals to donate to their cause through online donation portals or by directly approaching potential donors.
NGOs can leverage social media platforms like Facebook, Instagram, Twitter, and LinkedIn to reach out to potential donors and create awareness about their cause.