What is an NGO and how does it work?

NGO Registration provides legal authority to the company or entity and makes it more credible in the eyes of contributors and law. The main objective of a non-profit organization is for the improvement of any section of the society and tax exemption is available for all NGOs in India. Non-Profit Organizations in India are primarily engaged in cultural, legal, social, and environmental activities without any motto of profit. There are three legal ways for NGO Registration:

1. Trust Registration which is regulated by the Indian Trusts Act, 1882.
2. Society Registration under Societies Registration Act, 1860.
3. Section 8 Company registration is controlled by the Companies Act, 2013.

Benefits of NGO Registration

Check the lists of benefits of NGO Registration that comes under Trust Registration, Society Registration, and Section 8 Company Registration.

• Benefits of Trust Registration:

1. Several tax benefits in Income Tax, Service Tax and Entertainment Tax.
2. Advantages of 80G certificate in the Income Tax Act.
3. An NGO (Non-Government Organization) registered can use the word "Govt. Regd." who comes under the Trusts Act.

• Benefits of Society Registration:

NGOs (Non-Profit Government Organizations) registered under the Society Registration Act, 1860, can avail all the benefits mentioned below.

1. Society Registration provides protection in which no other company can use your assets, company name, etc.
2. You can open the bank account on the name of the premises or society.
3. Registration of the society provides the right to enforce legal proceedings.
4. Society registration enables us to raise funds from outsiders.

• Benefits of Section 8 Company Registration:

1. Exemption of Tax.
2. The registration of Section 8 Company is more trustworthy than any other form of Non-Profit organization (NGO) like Society and Trust Registration.
3. Exemption of Stamp duty.
4. There is no specific limit for any minimum capital requirement.

What are the documents required for Online NGO Registration?

Before the beginning the process of registering an NGO, make sure you have all the following documents at the time of NGO Registration:

Documents required for the Trust Registration:

Following are the vital documents required for the Trust Registration:

• Latest electricity bill or water bill for the address proof that needs to be registered.
• Submit Identity proof such as Aadhar card, Voter Id, Driving License, Passport, etc.

Note: After the payment, it takes around 8 to 10 days to complete the registration process online under the Indian Trust Act, 1882. Also, on the scheduled date for registration, the Author of the Trust should be present in the Register Office for the Trust registration.

Documents required for Society Registration:

Following are the vital documents required for the Society Registration:

• Name of the Society.
• Submit the address proof of the office, such as the latest electricity bill, water bill, etc.
• Submit identity proof of all the member (Aadhar card, Passport, Voter Id, Driving License, etc.).
• Submit two copies of MOA (Memorandum of Association) and By-laws of the society.

Note: It takes around 8 to 10 days for drafting Memorandum of Association and By-laws of the society once the payment is made and after that, it takes around 21 to 30 days for the Society registration.

Documents required for Section 8 Registration:

Following are the vital documents required for the Section 8 Company Registration:

• Company's Name.
• Address proof of the registered office such as the latest house tax receipt, water bill, electricity bill, etc.
• Identity proof of all the directors such as Aadhar card, Voter ID, Passport, Driving License, etc.
• Memorandum of Association and Articles of Association of the company.

Note: It takes around 8 to 10 days for drafting MOA and AOA of the society once the payment is made and it takes about two months for the completion of whole Company Registration.

What is the procedure for NGO Registration?

First, check the procedure of Trust Registration:

Procedure for Society Registration

For the Society Registration in India, it requires two very important things:

1. Rules and Regulations of the Society.
2. Memorandum of Association (MOA).

You will need to fill in the five clauses to form the Memorandum of the Society.

• Objects Clause.
• Capital Clause.
• Association Clause.
• Liability Clause.
• Name Clause.

Procedure for Section 8 Company Registration

The process of Section 8 company registration is similar to the other companies’ registration in India. All you need is to submit Memorandum of Association (MOA), Articles of Association (AOA), and Digital Signature Certificate. Following are steps to complete the registration process:

Conclusion

Most NGOs in India are structured around specific issues such as human rights, health issues and environmental issues. NGO offers analysis and aids in monitoring international agreements. If someone is looking to start an NGO, he/she needs to know what kind of NGO must be formed. It can be related to environmental issues, health issues and so on. Then you can get the NGO Registration through a consultant.