NGO registration is vital for any kind of organization. This allows a group to get permission for certain activities.
There are several NGOs registered across India that are working to eradicate discrimination against women, help save wildlife and enhance education and awareness for the underprivileged. If you have a cause to contribute towards, you should register an NGO to aim your willing. As an independent body, a registered NGO can also become the voice of the community that it serves.
An NGO can be formed either by an individual or an entity. A public person can form an NGO while an individual can form an NGO through an instrument called the ‘Independent Organization Act’. An NGO can only function if an Independent Organization Act is filed.
However, anyone can register an NGO in India without following any formal procedures. In general, there is no minimum membership requirement for the NGO. In addition, the minimum requirement for NGO registration is only some basic details, like the number of members and a website. NGOs in India cannot collect any funds from people outside the country unless they have a special certificate from the Income Tax Department.
How to Register an NGO In India?
There are many reasons why you should consider registering a new NGO in India. Not only will you be helping the country’s development efforts, but you’ll also be giving back to the community in a meaningful way. You can begin with just setting up a website and a Facebook page. The next step would be getting it registered in India so that you can begin collecting funds from donors and foundations around the world.
There are two primary funding sources for non-governmental organizations (NGOs) in India. The first is government grants, which represent nearly 90% of NGO funding. Government grants can be used for such things as full-time staff positions, program development, travel expenses for staff members working abroad, and equipment maintenance. The second source of funding for NGOs in India is individual contributions; such are, funding from other non-profits, the sale of services or goods, membership dues, private donations, and many other sources.
Before starting an NGO, it is always advisable to get involved in some work, whether on an individual level or through a foundation. By registering as an NGO, an organization can avail funds from various agencies and funds that can be used for any purpose including hiring employees or providing medical facilities at private hospitals or maternity homes, etc. You can avail training and technical assistance in various fields such as governance, management information systems, waste management systems, etc.
NGO Registration Process in India
NGOs are an overlooked part of Indian society. Organizations such as Human Rights Activists, Students Human Rights Activists, Public Interest Organizations, etc. have been fighting for social and political rights for decades without getting any recognition from the Indian Government or the public. As one of the largest development agencies in India, International NGOs play a crucial role in making India a better place.
The online NGO registration process for an organization in India can seem overwhelming. There are many documents to submit, contradictory advice on what is the acceptable online expression, and questions on whether you should be paying by check or online EFT. There is no doubt that information security is a sensitive matter that cannot be taken lightly. That is why we have sought out experts who have experience in handling such matters. To assist you, we have experts, with years of experience in handling NGO Registration process in India.
Various Types of NGO Registration in India and its benefits
There are around 3 major types of NGOs in India which are governed by different laws of NGO registration.
- Section 8 Company, company Act, 2013
- Trust, Indian Trusts Act, 1882
- Society, Societies Registration Act, 1860
Trust and Societies have their laws and regulations that depend upon the state you are getting it registered. However, Section 8 Companies follow the companies Act, 2013.
For greater transparency on the administration and functioning of an organization, there are good reasons why you should opt for NGO registration process. NGO Registration gives you many rights, besides the financial benefits that come with it. Besides being empowered with the authority to fight against poverty and disease, organizations also get the privilege of conducting opinion surveys, creating ad campaigns, registering disputes, and compiling information on budgets and finances which helps the people understand how their hard-working government is functioning. Here we are discussing major 3 types of NGOs that you can register for serving your purpose for social good.
Online NGO registration as “section (8) company”
Have you always wanted to use your talents for the benefit of others? If so, a Section 8 company is for you. These companies are focused on promoting fields such as arts, commerce, science, research, education, sports, environment, and more. You can register as a Section 8 Company under the Company Act, 2013. These companies are registered either as a Private limited company(required 2 directors) or a Public Limited company(required 3 directors).
Under the Indian Companies Act, 2013, this type of company doesn’t need to include the words “Limited” or “Private Limited” in its name. Also, these companies are required to follow the same rules that apply to a Private Limited Company or Public Limited Company.
The Central Government can accept an application from a person or group of people to form a company with charitable objectives if the conditions are met. Once you’ve paid all the requisite fees, the Registrar of Companies will register your company.
You may be thinking about what conditions are that should meet the prospects to register an NGO in India. That is nothing different than what you can assume when you register for a company in India. The conditions are like; INC 29 form cannot be used for incorporating section 8 company when you are not intending to promote any of the science, for environmental good, social welfare protection, art, sport, research, etc.
Benefits of a Section 8 Company
A section 8 company is a form of society or association. A section 8 company offers a number of advantages to the members. An important point to note is that in the case of illegal businesses, a section 8 company cannot offer protection to the beneficial owners of the companies. However, in other cases, the company can be given a certificate of qualification by the authorities. There are benefits, which will help and support you to grow and spread more care to needy people.
- The company can offer certain concessions in the taxation system, such as income tax.
- No stamp duty for section 8 company registration process.
- Not just an individual, but a firm ( sole-proprietorship, partnership, etc.) can be a member.
- Not required to use Pvt. LTD. extensions, however, this is optional.
- No share capital introduction is required.
- Limited liability protection.
- Various benefits from central government.
Documents required for Section 8 Company
The following documents are needed in order to register your company as Section 8:
- Utility bill of the office where you are operating your NGO from, the bill should not be older than 2 months.
- NOC / Rent agreement (if required)
- Details of all the directors, such as their directorship if they are active as a director in any other company.
- Passport size photo of all the directors.
- Copy of anyone from Driving License, Aadhar Card, Voter Id card, or Passport.
- Copy of PAN Card of all directors and shareholders.
Online NGO registration as “trust”
A trust (under the Indian Trust, Act, 1882) is a legal instrument established for the purpose of contracting one party to hold property on behalf of another. It is a form of ownership that has a set trustee who manages the property and distributes it to the beneficiary when the objective is met.
In other words, the trust is an agreement between a person (the ‘trustmaker’) and a trustee, according to which the trustee holds legal title to property and manages it for the benefit of another party (the ‘beneficiary’).
To obtain the benefits of a trust, it must meet a certain set of requirements. The trust registration process is one of these requirements. Before you initiate the process of trust registration, you will need to create a trust deed and form it on non-judicial stamp paper. However, the stamp duty vary from state to state.
Trusts are classified into two types in India: private trusts and public trusts. Private trusts are governed by the Indian Trusts Act, 1882. Meanwhile, Public trusts can be either charitable or religious in nature.
Indian public trusts are enforced by a number of statutes, including the Charitable and Religious Trust Act, 1920, the Religious Endowments Act, 1863, the Bombay Public Trust Act, 1950, and the Charitable Endowments Act, 1890.
Public trusts are created for charitable, community, or religious purposes. Unlike private trusts that can be used to transfer wealth to beneficiaries, public trusts are meant to benefit the public only.
Private trusts are regulated by Indian Trust Act, 1882. These trusts are formed for transferring wealth or benefit to the benefficiary or to your loved ones. You can also transfer your movable and immovable property to the trustee. The trustee is a person who holds property on behalf of someone else. That’s right, you guessed it, the beneficiary.
A trust is a legal arrangement that has three parties: Trustor, Trustee, and Beneficiary. The idea is that the Trustee will manage the assets of the Trustor and distribute them to the beneficiary.
Beside the major trust type, there are other some other types of trust. You may find wroth knowing about these:
Special Trust: Here, trustee is an agent and fulfils Granter’s wishes. Granter is actualy the peroson who had created the trust.
Simple Trust: A Simple or bare trust is a type of trust in which the trustee does nothing but hold the property and pass it on to the beneficiary, as determined by the trust.
Express Trust: The Settlor establishes a Trust over his assets with either a will or Trust deed. It can be set up to either happen in the present or upon the Settlor’s death.
Implied Trust: While you don’t have to go through the legal requirements of an Express Trust, this type of Trust is designed to be treated legally as one.
Benefits of Trust Registration
- Various tax exemptions from Income tax.
- Trusts provide help to those who are struggling and in poverty.
- Trusts are a way to own specific assets, like land or a family company, that might not be right for a settlor to divide between individuals. The trust can be used by people or group of people who want to benefit from assets, but don’t want to own them.
- Trusts can use Gov. registered name.
- 80G certificate
- Setting up a trust when you relocate to another country is an excellent way to protect your family’s wealth and provide flexibility in its organization. However, It requires detailed professional attention.
Documents Required for Trust Registration
The documents below are necessary for the registration of a Trust:
- Any of Aadhar Card, Voter Id Card, Passport, Driving License of Trustee and Trustor.
- Trustee and Settlor Pan Card.
- Passport size Photo of Trustee and Settlor.
- Trust deed (that should be arranged during registration by the person who is doing the registration).
- Occupation information and self attested copy of Id and Address proof.
- Trust objective.
- NOC or Rental Agreement if the trust property is on rent.
- Address proof, such as Telephone bill, electric bill (not older than 2 months).
- The name of the trust.
- Physical presence of two witnesses and settlor is required during the registration.
- The number of trustees.
- Rules and regulation of the trust.
Online NGO registration as “society”
Society is a group of people who unite in order to accomplish a common purpose. This can be seen in the Society Registration Act, 1860. When you register, your society will become legal as an NGO and it will be easier to work with one another for activities like fine art performance, literature, knowledge, scientific, charitable or literary works, etc.
Society Registration is a law that enables society to get a legal status in India. It also improves the society in terms of its legal conditions.
Benefits of Society Reigstration
There are various advantages of society registration in India:
- Societies are entitled with the status of legal entity.
- Society is a seperate legal entity even if the membership is changed.
- A society can buy, lease, rent, sale or buy, borrow money, or participate in contracts, a property on it name.
- Members do not have rights to own a assest.
- It gives eligibality to open seperate bank account for society.
- Members are responsible for any unlawful activities and obligation done by them.
- Income tax benefits as like any other NGO legal entity.
Documents required for Society Registration
Here are the list of the documents required for Society registration in India:
- List of the members.
- All the members residential proof such as, driving license, any utility bill (not older than 2 months), Passport, etc.
- Memorandum of Association (will be prepared by the person who is doing society registration for you).
- Sociey’s rules and regulations details.
- Objective of the society in the form of covering later.
- Society’s registered address proof (Any utility bill not older than 2 months)
- NOC or Rental Agreement if the society propery is on rent.