NGO Registration Service in India– An Overview
An NGO is a non-government
organization with a charitable objective, for the betterment of the society in
general. It can be started as a Trust, a Society or a Non-Profit Company
[Section 8 Company], depending on the activity you wish to undertake.
In India, NGO is an umbrella term
for all non-profit organizations including Trust, Society and Section 8 Company.
Other names for such not-for-profit organizations are "Sangathan",
"Sangh", "Sangam". Income Tax exemption
is available for all non-profit NGOs.
These are sometimes confused with
non-profitable companies, which refers to a regular business is not making a
profit.
At Edwin Corporate Law Firm, we
will help you select the right option and guide you through the entire NGO
registration process.
Acts governing NGO registration process:
Each law defines the formation of a
different type of organization, namely – Trust Registration, Society Registration and
Section 8 Ngo Registration. Choosing the kind of registration procedure for
the charitable firm is crucial. Our experts will help select the suitable
option that befits your vision and guide you with the online registration
process.
Why register an NGO in India?
Benefits
A registered NGO gains the legal
status and becomes accountable for the funds received. For instance, when an
individual donates funds to a charitable trust, it is received under the name
of the organization and used for the trust’s activities. In an unregistered
firm, the assets can be received under anyone’s name and may be used for their
own profit.
An organization that is registered
as an NGO reinforces the ethical, social and legal norms of our society.
The basic requirement for running
an NGO is to have a bank account under its name. In order to open an account,
it is mandatory to be registered as a Trust, Society or Section 8 Company.
The registration of an NGO is
necessary to seek tax exemption from the Income Tax Authority.
Registration of NGO in India
Trust
One of the ways in which an NGO can
be registered is Trust or more commonly called charitable trust. Trust is a
legal entity created by the “trustor” or “settlor” who transfers the assets to
the second party or “trustee” for the benefit of the third party or
“beneficiary”. Trusts are formed to help and support the deprived sections of
the society. Any group of individuals can register a trust and in India as such
there are no specific laws to govern the public trust.
Societies
A society is an entity that can be
created by a group of individuals united in their cause for promoting science,
arts, literature, social welfare and useful information. In addition, societies
work for creating military orphan funds, maintaining public museum and
libraries.
Societies are governed by the
Societies Registration Act, 1860. They must be registered with the respective
state Registrar of Societies to be eligible for tax exemption.
Section 8 Companies
A Section 8 company is similar to a
trust and society. The objectives of a Section 8 Companies are to promote arts,
science, commerce, sports, social welfare, religion, charity and environmental
protection. They are registered under the Companies Act, 2013 for charitable
purpose. They have better credibility among government bodies, donors and other
stakeholders.
NGO Registration Methods in India -
Trust, Society, or Non-profit Company [Section 8 Company]
A Detailed Process
In India, anybody is free to do
social activities without forming an association or organization. But when an
individual wants to create a group that involves volunteers, activities, and
resources, it becomes important to have proper management in place. To run such
companies, trusts and Societies in the correct manner, a certain set of rules
need to be followed.
Essential documents for online
society registration & trust registration
Before a registered deed is
delivered to an NGO, submission of specific documents is required.
Trust Registration
For the trust registration, the
following papers are mandatory:
A bill of electricity or water
stating the address that needs to be registered.
The identity proof of at least two
members of the company. The proof can be:
Voter ID
Driving License
Passport
Aadhaar Card
Once the payment for the
registration is done, it takes about 8 to 10 days for online registration to be
completed under the Indian Trust Act – 1882. Before the deed becomes valid
throughout the country, the settler has to deliver a presentation at the
registrar’s office.
Note: On the scheduled date for
registration, the Author of the Trust shall be present in the Register Office
for registration With two witness