NGO Registration Process: Complete step by step process explained

By Masha 27 July 2023 Resources 0 Comments

Introduction: NGO Registration Process is not that complicated and if you are interested in registering an NGO or even a trust look no further because the process is so simple and it is no brainer to get the registration done, learn the complete NGO registration process with this simple guide on NGO Registration Process.

Table of Contents

Why you need to learn the NGO Registration Process

Taking a step to officially register NGO offers numerous advantages that can significantly enhance your organization’s effectiveness.

By going through the registration process, you gain access to better management practices, ensuring smoother operations and streamlined functioning. Moreover, being a registered NGO opens doors to a larger network of volunteers and resources, enabling you to amplify your impact and reach. You’ll be able to build stronger partnerships with like-minded individuals and organizations, fostering a collaborative environment for the betterment of society. NGO Registration Process

This is not all, a registered NGO enjoys several privileges that an unregistered one does not have. This includes eligibility for tax exemptions, making your NGO more attractive to potential donors who can support your noble cause. By gaining tax benefits under Sections 12A and 80G of the Income Tax Act, you’ll encourage more individuals and companies to contribute, enhancing your financial sustainability and long-term growth prospects. NGO Registration Process

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Advantages of NGO registration process

Are you considering registering your NGO in India? Congratulations, you’re making a wise decision that comes with a multitude of advantages! Let’s delve into the key benefits of NGO registration:

A Legal Entity: Upon registration, your NGO becomes a distinct legal entity, capable of operating with its own name, acquiring assets, and assuming liabilities. This separation offers protection and clarity, safeguarding the interests of both the organization and its stakeholders.

Own Bank Account: An enrolled NGO can have its own dedicated bank account. This not only boosts donor confidence but also facilitates a transparent financial system. Donors are more willing to contribute when they can directly donate to the NGO’s account. NGO Registration Process

Tax Exemptions: One of the most significant advantages of registration is access to various tax exemptions under the Income Tax Act. Donations to registered NGOs are tax-deductible, encouraging more generous contributions. Additionally, NGOs enjoy exemptions on Stamp Duty and other taxes.

Legally Work on Social Issues: One of the primary advantages of registering an NGO is that it allows you to legally operate and work on social issues. Registration grants your organization the status of a separate legal entity, enabling you to engage in a wide range of activities aimed at addressing societal challenges. NGO Registration Process

With official recognition, you gain the legitimacy to advocate for causes, implement projects, and collaborate with other stakeholders, including government bodies and international organizations. This legal standing ensures that your efforts are in compliance with the relevant laws and regulations, enhancing your credibility and effectiveness in driving positive change.

Can Receive Monetary Support: NGO registration opens the door to various funding opportunities, allowing your organization to receive monetary support from individuals, philanthropists, corporations, and governmental agencies. Many donors and funding institutions prefer to support registered NGOs due to the transparency and accountability associated with official recognition. NGO Registration Process

Additionally, registered NGOs are eligible for tax exemptions, making them an attractive choice for donors who can claim tax benefits on their contributions. Access to financial resources enhances your NGO’s capacity to implement impactful projects, expand outreach, and make a more significant difference in the lives of those you aim to serve.

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What types of Organizations can be done under NGO Registration Process?

Explore Your Options: Trust, Society, or Section 8 Company for Your NGO Registration

When it comes to registering your NGO, you have three distinct paths to choose from, each offering its unique benefits and advantages. Let’s take a closer look at these options:

Trust: The trust model stands as the oldest and time-tested form of a not-for-profit organization. With just a minimum of two members, you can form a trust, governed under the Indian Trust Act of 1882. Operating a trust is remarkably straightforward, as it doesn’t entail any statutory requirements for annual returns or document filing. This simplicity allows you to focus more on the essence of your social work and less on administrative burdens. NGO Registration Process

Society: For those seeking a more democratic approach to NGO registration, the society route provides an excellent fit. To incorporate a society, seven members from one state or eight members from different states must unite with a shared objective. This form of registration operates under the Societies Registration Act of 1860. Notably, societies are required to file the list of body members annually, promoting transparency and democratic functioning within the organization. NGO Registration Process

Section 8 Company: True to its name, the Section 8 Company takes the shape of a corporate entity incorporated under the Companies Act of 2013. It can adopt a structure limited by share capital or guarantee. The government grants a special license to Section 8 companies for incorporation, underscoring their commitment to promoting social causes. These companies utilize funds exclusively to further their objectives and are prohibited from distributing dividends to shareholders, emphasizing their focus on creating meaningful impact over profits. NGO Registration Process

It’s important to recognize that every organization holds its unique strengths and purpose. There is no one-size-fits-all approach to deciding which Not-For-Profit Organization model is better.

Instead, consider the specific needs and requirements of your NGO and align them with the characteristics of each option.

By doing so, you’ll make an informed choice that resonates with your organization’s vision and maximizes its potential for positive change.

Remember, whether you opt for a trust, society, or a Section 8 company, the path you choose will shape your journey towards creating a brighter future for those you aim to serve. NGO Registration Process

Embrace the opportunity to make a difference, and let your organization’s registration be the stepping stone towards meaningful impact and lasting change.

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Navigating the NGO Registration Process

If you’re looking to register your NGO as a trust, society, or Section 8 company, here’s a step-by-step guide to each process:

Registering as a Trust:

Begin by choosing a unique name for the trust that complies with the Emblems and Names Act of 1950.
Draft a comprehensive trust deed that includes all relevant information about the trust’s objectives and operations. This document will be presented before the registrar during registration.

Select at least two trustees who will be responsible for managing the trust. The trust deed should clearly state their roles and responsibilities.

Prepare a Memorandum of Association (MOA) that defines the trust’s relationship with outsiders, outlining its purpose and scope.

Submit the required documents, including the Trust Deed with the appropriate stamp value, particulars of the trustees and settlor, and documentation for the registered address, along with the necessary fee, to the registrar.

Upon review and approval of the submitted documents, the registrar will issue the trust’s registration certificate within approximately two weeks. NGO Registration Process

Registering as a Society:

Select a unique and non-identical name for the society.
Prepare the Memorandum of Society, ensuring it is signed by all founding members and witnessed by an authorized official with their official stamp.
Apply to the registrar with the required documents, which typically include the Memorandum of Society, address proof of the society, particulars of all members, and the chosen society name.
Upon satisfactory verification of the documents, the registrar will issue the Certificate of Registration for the society.

Registering as a Section 8 Company:

Obtain a Digital Signature Certificate (DSC) to facilitate the use of digital signatures during the incorporation process.
Reserve the name of the company using SPICE (Simplified Proforma for Incorporating Company Electronically) and Part A form on the Ministry of Corporate Affairs website.
Download and fill out the SPICE form, including the Memorandum of Association and Articles of Association.
Provide all necessary details in the Agile Pro form, such as GST and bank account details.
Complete the INC 9 form, including declarations by subscribers and the first director.
After filling all the forms, conduct a pre-scrutiny check and submit the required fee for incorporating the Section 8 company.
Upon satisfactory review and validation of the information provided, the registrar will issue the Certificate of Incorporation for the Section 8 company.

Navigating the registration process may seem complex, but once completed, your NGO will be officially recognized, granting you the legal standing and legitimacy to make a meaningful impact on the causes you hold dear.

Take these steps confidently, knowing that you are setting the foundation for a brighter future and a more compassionate society. NGO Registration Process

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What are 80G, 12A and FCRA certificates for NGO Registration Process?

In the NGO registration process in India, several certificates and approvals play crucial roles in enhancing an organization’s credibility, financial viability, and eligibility for receiving foreign funds. Here are the key certificates relevant to NGOs:

12A Certificate: The 12A certificate is provided under Section 12A of the Income Tax Act, 1961. NGOs that obtain this certificate are eligible for tax exemption on their income. NGO Registration Process

This means that any income generated by the NGO, such as donations or revenue from charitable activities, will be exempt from income tax.

Having a 12A certificate encourages donors to contribute, as they can claim tax benefits on their donations to the organization. It also enables the NGO to utilize its funds more effectively for its charitable objectives.

80G Certificate: The 80G certificate is granted under Section 80G of the Income Tax Act, 1961. NGOs with this certificate are eligible to offer tax deductions to their donors. NGO Registration Process

Donors who contribute to an NGO holding an 80G certificate can claim deductions on their taxable income based on the amount donated.

The percentage of deduction varies depending on the type of NGO and the specific projects supported.

Obtaining an 80G certificate enhances an NGO’s attractiveness to potential donors, encouraging more significant contributions and support for its initiatives. NGO Registration Process

FCRA Registration: The Foreign Contribution (Regulation) Act, 2010 (FCRA) governs the acceptance and utilization of foreign contributions by NGOs in India.

FCRA registration is required for NGOs seeking to receive foreign funds, donations, or grants. Once an NGO is registered under FCRA, it can legally accept foreign contributions, which can be instrumental in funding projects and initiatives.

However, it’s important to note that FCRA compliance involves strict regulations, and NGOs must ensure proper utilization and reporting of foreign funds as per FCRA guidelines. NGO Registration Process

Obtaining these certificates and approvals is essential for NGOs to enhance their financial stability, attract more donors, and efficiently implement their projects.

It also demonstrates transparency and accountability, making the NGO’s operations more trustworthy and appealing to stakeholders, including donors, partners, and beneficiaries. NGO Registration Process

As a result, these certificates significantly contribute to the long-term sustainability and success of registered NGOs in India.

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In conclusion, the process of NGO registration in India brings with it a myriad of benefits and opportunities for organizations seeking to make a positive impact on society.

By obtaining essential certificates such as 12A, 80G, and FCRA, NGOs can bolster their credibility, attract more donors, and access crucial resources to further their noble causes.

With legal recognition, financial viability, and the ability to receive foreign contributions, registered NGOs can pave the way for a brighter and more compassionate future for those they serve. NGO Registration Process

Embracing the registration journey is not only a testament to an organization’s commitment but also a powerful step towards creating lasting change and making a real difference in the world.

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