NGO Registration

NGO

NGO’s are basically a non-profit organization which is incorporated with an objective to support under privileged section of the society and work for advancement of different issues like social, cultural, legal, environmental, art, science etc. As the name Non-Government Organization suggests they are operated by citizens on voluntary initiatives without any kind of interference from central or state governments

Purpose of NGO registration

What distinguishes a non-government organization from any other organization is the objective with which it is established. The main objective of every organization is that profit making as it ensures smooth functioning and future growth. However, NGO registration is done with only one objective i.e. to help others. The sector it works in might differ but the ultimate objective and inherent desireof supporting the under privileged, social welfare is always there and works as a driving force. This can be done through many ways like education, trade, art, skill development, cultural promotion etc. While starting a non-profit organization one must clearly define a clear vision for which it is established and will be operated. Along with clarity regarding organizational goals they must also define the beneficiary. Beneficiary can either be public in general or a set of people.

NGO Registration

If you are willing to establish a non-profit organization for the working with an objective of betterment ar advancement of any particular section of the society it is recommended to first get NGO Registration done. As NGO registration provides a legal entity to the organization which makes it more credible in the eyes of law and contributors. In India one can go for NGO registration in three legally possible ways; Trust registration, society registration or Section 8 Company registration.

What are the laws applicable for NGO Registration in India?

In India NGO registration can be done in three forms under their regulating Acts. These three options for NGO Registration are listed below:

  • Trust Registration: under The Indian trusts Act, 1882
  • Society registration: under Societies Registration Act, 1860
  • Section 8 Company Registration: under Companies Act, 2013

After NGO registration am I eligible for government funding?

In general practice you will be eligible for government funding after 3 years of successful NGO registration. However, in certain special cases if the NGO can get project approvals government funding can be acquired after just one year of NGO registration.

What is the minimum member requirement for NGO registration?

Following are the minimum no of member required for NGO registration;

1. For Trust, minimum 3 members are required. One Assignee and minimum two trustees.

2. For Society, minimum 7 members are required. However, if the society is registered on national level than 8 members are required from different states.

3. For Section 8 Company, minimum 2 members are required.

Can a newly registered NGO apply for FCRA registration?

In general practice FCRA registration can be applied only after expiry of 3 years from the date of NGO registration. However, after successful NGO registration the entity can apply for 'prior approval' under FCRA regulation for accepting foreign remittance. In order to apply for prior approval following conditions must be satisfied;

1. The foreign grant will be remitted by a specific contributor.

2. Such grant will be utilized for a specific project.

3. NGO must be in possession of a approval letter issued by such contributor.

What are the factors to consider while selecting a name for NGO registration?

The most important point of consideration before initiating the NGO registration procedure is finalizing a name for the proposed NGO. Following factors must e considered in the process;

1. The proposed name must not violate any of the provisions of The Names and Emblems (Prevention of Improper Use) Act 1950.

2. The proposed and must not be obscene or shall not indicate any kind of mis-regard to any section of society or group of people.

3. The name for the proposed NG registration must not indicate any kind of affiliation to any government body.

4. Name must not be similar to any already registered entity in that particular category.

Who can become a member at the time of NGO registration?

Following person can become a member at the time of NGI registration;

1. Any resident individual.

2. Any foreigner can also subscribe to the incorporation document.

3. Any registered partnership Firm or limited Liability Partnership.

4. Company registered under Companies act, 2013.

5. Any registered society.

Is there any tax exemptions granted after NGO registration?

Yes after NGO registration is completed you are recommended to apply for 80G and 12A registration under Income Tax Act, 1961. These registrations ensure dual tax exemptions, to the NGO as well as to its donors.

NGO Registration under section 8 Company

NGO Registration can also be done in the form of a Section 8 Company under Companies Act, 2013. Unlike any other company, Section 8 Company is not allowed to issue any kind of dividend to its shareholders. As they are formed for charitable purpose any profits earned are reinvested in the organization for furtherance of its main objects.

    Basic Features
  • Section 8 Company is regulated by the provisions of Companies Act, 2013.
  • Minimum 2 directors are required to incorporate a Section 8 Company.
  • Minimum two promoters are required. Promoters (shareholders) can be same person who are appointed as directors.
  • Before filing final application for incorporation name of the proposed NGO must be approved. An application for the same is required to be submitted through RUN service.
  • All the operating principles along with clear defined rules and regulation must be mentioned in the memorandum of association and articles of association of the section 8 Company.