NGO Registration

Overview of NGO Registration

NGO registration is a profit that enables nonprofit organizations to offer services to the public, often with the assistance of the government, corporations, individuals, or groups. As a nongovernmental organization serving the majority, NGOs must adhere to policy.

An NGO is a non-governmental organization that engages in philanthropic activities to improve society. For the activity you wish to pursue, start-up options include a trust, society, or non-profit company.

In India, all non-profit organizations, including trusts, societies, and Section 8 companies, are collectively referred to as NGOs. People also refer to these non-profit organizations as ‘Sangathan’, ‘Sangh’, and ‘Sangam’. Income tax exemptions are available to all non-profit NGOs.

Sometimes, people mistake these for non-profitable enterprises, a sign of a conventional company that lacks profitability. The legal dost will guide you through the entire NGO company registration process and assist you in making the most informed decision.

Types of NGOs

In India, there are three widely registered NGOs.

Why is NGO Registration Required?

• The operations of local NGOs may be able to develop with the aid of NGO company registration, which ensures greater exposure for the organization.
• Individuals who contribute funds are more likely to associate themselves with registered NGOs, enhancing the organization’s credibility and establishing an aura of authenticity.
• The expansion of both financial and human resources is important. The NGO will benefit from an increase in the number of volunteers.
• The ITR Filing Return Act of 1961 does not restrict companies recognized as NGOs from selling their assets or interest-earning claims.
• Register your business as an NGO in India by the 2013 Companies Act to receive a variety of benefits for the company’s directors.
• The ITR Act of 2013 exempts all businesses organized as NGOs from stamp duty, thereby providing businesses with additional opportunities to reduce their tax burden.

Benefits of NGO Registration

• To receive a tax exemption from the Income Tax Authority, an NGO must register.
• An NGO-registered organization upholds our society’s moral, social, and legal standards.
• Legal status grants a registered non-governmental organization (NGO) responsibility for the funds it receives.
• A bank account in the organization’s name is a fundamental requirement for an NGO’s operation.

Who is Eligible to Start an NGO?

• A minimum of three directors is required for incorporation as a public limited company.
• To establish an NGO as a private limited company, a minimum of two directors is necessary.
• A private limited company has a maximum of 200 members.
• There is no member limit for a public limited company.
• There is no fee if you register as an NGO.

Steps to Take Before Submitting an Online NGO Registration Application

1. Obtain a Certificate for a DCS (Digital Signature)
2. Apply for a Director Identification Number (DIN).

Online NGO Registration Forms

• DIR 12: Appointments of Directors
• DIR 2: Consent of Directors
• INC 1 to INC 22 Situation of the Registered Office
• INC 7 Applications for Company’s Incorporation
• INC 9 has received affidavits from each director and subscriber.

Documents Required for NGO Registration

Process of NGO Registration

• Determine the type of NGO
• Select a Unique Name
• Prepare the Memorandum of Association (MoA) and Articles of Association (AoA)
• Formulate the Governing Body
• Provide a Registered Office Address
• Prepare the Required Documentation
• Fill out the registration application
• Review and Approval
• Obtain the Registration Certificate
• Apply for Tax Exemptions
• Ensure Compliance and Reporting

How do I raise funds for NGOs?

• This includes the solicitation of small donations from many individuals through online platforms.
• NGOs can apply for grants from government agencies and private foundations.
• They can sponsor programs and donate to causes.
• Organizing fundraising events such as charity walks, concerts, and auctions.
• NGOs can directly approach potential benefactors or use donation portals.
• NGOs can utilize social media platforms like Facebook, Instagram, Twitter, and LinkedIn.

What are the NGO registration fees?

The NGO registration fee differs depending on the country and the specific registration procedure. The regulatory bodies’ requirements, the type of NGO, and its location all have an impact.

How long does it take to register an NGO?

• There is a trust incorporation process that will take 20 days.
• The process for Section 8 company takes 10–14 days.
• The society registration process will take another 25 days.