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An NGO (Non-Government Organization) is a charitable entity established with the aim of fostering societal progress on a global scale. NGO registration is mandatory for any organization intending to work for societal welfare in India.

An NGO can be formed as a Trust, Society, or Section 8 Company (a Non-Profit Company) based on the specific nature and goals of the project it seeks to undertake. NGOs cater to a wide array of social interests and causes.

These organizations actively engage in promoting human and animal rights, improving the health and welfare of children, and conducting expansion work. They are also instrumental in raising awareness on various socially significant issues.

In India, the term NGO encompasses all non-profit organizations, including Trusts, Societies, and Section 8 Companies. Commonly referred to as “Sangathan,” “Sangh,” or “Sangam,” these organizations are eligible for income tax exemptions. However, NGOs should not be confused with non-profitable companies, which refer to regular businesses that do not generate a profit.

In India, the social sector is largely driven by non-governmental organizations (NGOs), which play a pivotal role in supporting marginalized communities and addressing gaps in the economy often overlooked by the government. NGOs are often described as performing tasks that a well-functioning welfare state would typically undertake. In India, however, these organizations, commonly referred to as charitable organizations, rely heavily on donations from the wealthier sections of society.

NGOs and nonprofits in India are vital to the development and upliftment of underprivileged sections of society. With a significant portion of the population living below the poverty line, many individuals lack access to basic necessities such as food, water, and shelter. For countless others, education remains a luxury rather than a necessity. Despite government efforts and funding, issues like poverty, unemployment, hunger, and the lack of proper shelter, sanitation, clean water, and electricity persist in various parts of the country.

It is the selfless work of nonprofits and NGOs that spearhead crucial development projects, contributing to India’s growth and progress. Their role in national development is, therefore, indispensable.

A common question many face is: How can one start an NGO in India? This article aims to address this by providing detailed guidance on starting an NGO, including the required documents, registration fees, and FCRA registration.

NGO Registration
Registering an NGO is mandatory for any organization intending to work for societal welfare. An NGO is a non-governmental organization with a charitable purpose aimed at societal progress on a global scale. Depending on the project’s objectives, an NGO can be established as a Trust, Society, or Section 8 Company (Non-Profit Company).

NGOs can focus on a wide range of societal interests, including environmental causes, human and animal rights, children’s health and welfare, expansion initiatives, and raising awareness about socially significant issues. Income tax exemptions are available for all non-profit NGOs. However, it is essential not to confuse NGOs with non-profitable companies, which are regular businesses that fail to generate profit.

What Are the Laws Governing in India for NGO Registration?

To register an NGO in India, there are three primary legal frameworks:

Indian Trust Act, 1882
Societies Registration Act, 1862
Companies Act, 2013

Before initiating the registration process, it is essential to understand some fundamental aspects of setting up an NGO:

1. Define Mission and Vision
   An NGO, much like a company, requires a clear mission and vision. Establishing specific goals and outlining a structured approach to achieve them is crucial for its success.
2. Establish a Governing Body
   One of the initial steps in forming an NGO is creating a governing body. This body will oversee operations, ensure adherence to the NGO’s objectives, and provide strategic direction.
   Get in touch with to know more about how to commence an NGO in India.   There are three possible methods by which we can get listed NGOs in India: Society Registration Trust Registration Section 8 Company Registration

Several Reasons for NGO Registration in India:

1. Self-Governing Organization
   NGOs operate independently and focus on aiding those in need and uplifting society by addressing the needs of the underprivileged.
2. Opportunity for Growth
   The primary objective of an NGO is to support disadvantaged individuals by creating opportunities for growth and a brighter future.
3. Numerous Benefits
   Registering an NGO offers multiple advantages. Once you have a clear vision and list of objectives, you can leverage the various benefits available to NGOs, which will be discussed further.One of the primary ways to register an NGO is as a Trust, commonly referred to as a charitable trust. A trust is a legal entity established by a “trustor” or “settlor”, who transfers assets to a second party, known as the “trustee”, for the benefit of a third party, referred to as the “beneficiary”.Trustrusts are primarily created to support and uplift marginalized sections of society. Any group of individuals can register a trust. While India does not have a uniform law governing public trusts, certain states, such as Maharashtra and Tamil Nadu, have specific legislation like the Public Trust Act to regulate them.Benefits of Trust Registration
   1. Access to Government Land
      Registered trusts are eligible to acquire land from government agencies for their operations and initiatives.
   2. State-Specific Regulations
      While most states in India do not have specific laws governing public charitable trusts, states like Madhya Pradesh, Maharashtra, Gujarat, and Rajasthan have enacted Public Trust Acts to regulate such entities.
   3. Recognition of Registration
      A trust registered under the Trusts Act can use the designation “Govt. Regd.” or “Regd.”, adding credibility and legitimacy to its operations.
   4. 80G Certification
      Registered trusts can obtain an 80G certificate under the Income Tax Act, enabling donors to claim tax benefits for their contributions.
   5. White Capital for Construction
      Trusts are eligible to secure white capital for building and infrastructure development.
   6. Tax Benefits
      Registered trusts enjoy exemptions and benefits related to Entertainment Tax, Service Tax, and other applicable levies.

A society is a legal entity formed by a group of individuals with a shared mission to promote causes such as science, arts, literature, social welfare, and the dissemination of useful knowledge. Societies may also focus on initiatives like supporting military orphan funds and maintaining public museums and libraries.

Societies are governed by the Societies Registration Act, 1860. To qualify for tax exemptions and other benefits, societies must be registered with the respective State Registrar of Societies.

<Strong>Benefits under Society Registration</Strong>

NGOs registering under the Society Registration Act, 1860 can avail the following benefits:-

Exemption from Income Tax:
Society registration is a type of NGO registration that exempts the organization from paying income tax. This tax exemption is a highly sought-after benefit for NGOs.

Separate Legal Identity:
An NGO registered as a society is recognized as a distinct legal entity under the law. This ensures that each member is accountable only for their individual actions and not for the actions of others. This distinction safeguards members from being held responsible for activities undertaken by other members.

Limited Liability:
A society NGO, being a separate legal entity, limits the liability of its members to their respective shares. This means that under no circumstances can members’ personal assets be used to cover the liabilities of the organization. Members’ responsibility is confined strictly to their contributions.

Legal Protection:
Registration under the Society Registration Act, 1860, provides legal protection to the society. This ensures that the society’s name, assets, and other properties cannot be used by any other entity. Any violation of this protection is subject to legal consequences and punishment.

1. No Minimum Capital Requirement:
   Section 8 companies have no prescribed minimum capital requirement, unlike public limited companies. The capital structure can be adjusted at any stage to accommodate the growth and needs of the organization.
2. Separate Legal Entity:
   Similar to trusts, a Section 8 company is recognized as a separate legal entity. It operates independently from its members and retains its distinct identity, ensuring continued survival, similar to private limited or public limited companies.
3. Tax Exemption:
   NGOs registered as Section 8 companies enjoy significant tax benefits. Not only do the organizations themselves benefit from tax exemptions, but donors contributing to such NGOs can also claim tax deductions for their donations, as provided under the Income Tax Act.
4. No Stamp Duty Payable:
   Section 8 companies are exempt from stamp duty formalities during registration. This exemption also extends to payments that would typically apply to private and public limited companies.
5. No Title Requirement:
   Unlike private or public limited companies, Section 8 companies are not required to use a suffix in their name. This allows them to operate without the need for titles like “Private Limited” or “Limited.”
6. Enhanced Reliability:
   Section 8 companies are often considered more reliable than trusts or societies due to their robust legal structure. Unlike other NGOs, Section 8 companies are governed by their MOA (Memorandum of Association) and AOA (Articles of Association), ensuring dependable operations.
7. Secure Transfer of Ownership:
   Section 8 companies allow for the seamless transfer of both movable and immovable assets without restrictions, as per Section 8 of the Income Tax Act, 1961.
8. Additional Benefits:
   • Exemption from income tax obligations.
   • Flexibility in convening general meetings with shorter notice periods (14 days instead of 21 days).
   • Several other operational and administrative benefits.

 Before we go through the registration procedure, let’s have a look at the Documents required for the Trust Registration.

Documents Required for Trust Registration

1. Personal Details of Trustees:
   • Name, age, residential address, and contact number of the trustee(s).
2. Address Proof of Trustees and Settlers:
   • Any of the following: Voter ID, Driving License, or Passport.
3. Ownership Proof of Property:
   • Documents such as an Electricity Bill or House Tax Receipt as evidence of property ownership.
4. Rent Deed and NOC (if applicable):
   • A Rent Deed, duly notarized with rent receipts.
   • A No Objection Certificate (NOC) from the landlord, prepared on an INR 10 stamp paper

Procedure for Trust Registration

In India, some states have their own Trusts Act, while others follow the Indian Trust Act, 1882 for Trust Registration. Below is the step-by-step procedure:

1. Draft the Trust Deed
   The Trust Deed should include the following details:
   • Name and Address of Trustees
   • Name of the Trust (Provide a minimum of three preferences)
   • Address of the Registered Office of the Trust
   • Objectives and Beneficiaries of the Trust
   • Rules and Regulations that the Trust will adhere to
   • Tenure of the Trustee, which typically ranges from 1 to 5 years
2. 80G and 12A Certificate Application
   Apply for the 80G and 12A certificates, which are essential for availing tax exemptions and securing donations.
3. Submission of Trust Deed
   • Submit the Trust Deed to the local Registrar along with a photocopy.
   • The Settler must be physically present during the registration process with their Original ID Proofs.
4. Registrar’s Process
   • The Registrar will retain the photocopy of the Trust Deed.
   • You will receive the original registered Trust Deed as proof of registration.

Before we go through the registration procedure, let’s have a look at the Documents required for the Section 8 Company Registration.

According to the bill passed in the Lok Sabha, the Foreign Contribution Regulation Act (FCRA) was amended for the NGO office-bearers to compulsorily submit their Aadhaar numbers while registration.

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