December 1, 2021 6:51 am
NGO Registration
Advantages
Reliability and Credibility
More exposure to the organization
Expansion of scope/ area of operations
Association with more volunteers
Legal Entity
Introduction
NGOs are legally established organizations which are generally considered to be non-profit oriented groups whose ultimate purpose is to work for public interest towards the welfare of the public, child education, a social agenda, care of environment, wildlife, etc and they work independently from the Government. Generally, the activities of NGO’s are to promote the interests of the poor, protect the environment, provide basic social services, or undertake community development and to promote the art, culture and science in India. The full form of NGO is Non-Governmental Organization, NGO’s are also referred to as Non-Profit Organizations (NPO’s) sometimes
Requirement for NGO Registration
- Reliability and credibility
- More exposure to the organization
- Expansion of scope/ area of operations
- Association with more volunteers
- Legal Entity
Types of NGO Registrations in India:
In India if a person wants to establish an NGO can go for these 3 types of registration:
Reliability and Credibility
Society Registration
Section-8 Company (Foundation)
Trust registration
Indian Trust Act, 1882 governs the procedure of registration and maintaining the trust in India although various states also enacted their own trust acts. Minimum members required for registration of Trust is 3 members. Further, the instrument by which this entire trust is created is called the “trust deed”.
Trust as an NGO in India can be registered as:
Trust as an NGO in India can be registered as:
Private Trust:
Private trust is basically a financial vehicle that transfers property from its owner to a trust for the lawful purpose. The property doesn’t just mean real estate. It could be cash, shares or any other valuable asset.
Private trust is basically a financial vehicle that transfers property from its owner to a trust for the lawful purpose. The property doesn’t just mean real estate. It could be cash, shares or any other valuable asset.
Public Trust
Public trust is set up as per the applicable Act and works in the field of healthcare, education, support of the underprivileged and for charitable purposes.
Public trust is set up as per the applicable Act and works in the field of healthcare, education, support of the underprivileged and for charitable purposes.
Documents Required for Trust Registration in Rajasthan
- PAN Card
- Aadhaar Card
- Electricity Bill of Regd Office
Society Registration
Society NGO is incorporated under the Society Registration Act, 1860. Societies are formed to serve society and not to earn profits. A minimum number of 7 persons who are above 18 years of age can form a society or an association. There is no such limit for maximum number of persons. The States have defined their own act for formation of societies and their scope of area of work is restricted to the State in which it is registered.
The main objective of society registration are as follows:
- Arts, literature, educational, cultural, charity, fine arts and crafts
- Knowledge of commerce and industry
- Promotion of scientific research and temperament in the Indian society
- Dissemination of political education and training
- Promotion of Sports related activities
- Diffusion of any knowledge or any public purpose,
- Maintenance of reading room and libraries
- Preservation of historical monuments, technical and philosophical research.
Documents Required for Society Registration in Rajasthan
- Aadhaar Card
- Electricity Bill of Regd Office
Section -8 Company (Foundation)
In India, Section-8 Company is regulated by the Indian Companies Act, 2013 and is administered by the Ministry of Corporate Affairs, Government of India.
The Section 8 Company means a Company formed with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members.
This type of NGO is favorable for those who want to work on PAN India Basis and on a greater scale. Minimum members required to incorporate Section-8 Foundation is 2 members.
The Section 8 Company means a Company formed with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members.
This type of NGO is favorable for those who want to work on PAN India Basis and on a greater scale. Minimum members required to incorporate Section-8 Foundation is 2 members.
Documents Required for Section-8 Foundation
- Photograph
- PAN Card
- Aadhaar Card
- Bank Statement
- Electricity Bill of Regd Office
Comparison between Trust, Society and Section-8 Foundation
S.No. | Particulars | Trust | Society | Section-8 Foundation |
1 | Act Governance | Indian Trust Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 |
2 | Members | Minimum :3 | Minimum: 7 | Minimum of 2 Directors/Shareholders |
3 | Jurisdiction | State in which it is Registered | State in which it is Registered | PAN India |
4 | Annual Compliance | Basic ITR Filing | Society Audit and ITR | Audit and ROC Filing |
5 | Registration Document | Trust Deed | Society Certificate and Byelaws | COI, License , MOA and AOA |
GST Rate changes from 1 Jan 2022 vide Notification No . 14,15,16&17/2021 dated 18.11.2021
Read More » November 28, 2021 6:59 am
FAQs on NGO Registration
1. What type of NGO should I register - Trust, Society or Section-8?
Depending on the type of work and the area of operations, you should choose the type of NGO. It is better to consult any professional to understand the concepts.
2. How to register an NGO?
First, you need to choose between Trust, Society and Section-8 Foundation. Depending upon the entity chosen, choose the name of your Organisation and collect the documents required. Contact NGO Registration Consultant and proceed with the registration.
3. How to register under Section 80G and Section 12A for claiming tax benefits?
Section 80G and 12A Registrations are required by an NGO for claiming tax benefits and can be applied soon after registration as provisional and final can be applied once you start the operations. For more information read our complete guide.
4. Can any government employees or officers become a member of an NGO?
Yes, the Government employees or officers can become part of NGOs.
5. How many members are required to form an NGO?
The minimum numbers of members required to form an NGO are:
Trust : 3 members
Society: 7 members
Section-8 Foundation : 2 members
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