Online Process for NGO Registration in India

Overview of NGO Registration in India

NGO registration is a process that enables nonprofit organizations to offer services to the general public. Once, an NGO is registered, it also helps these organisations to avail funding from governmental bodies, businesses, private citizens, or other organizations. NGOs must abide with the law in order to maintain their status as non-governmental organizations.

An NGO is a non-governmental organization that engages in charitable endeavors for the betterment of the society. If you wish to perform charitable functions social welfare, then you can incorporate a Trust, Society, NGO, or a Section 8 Company, depending upon the kind of social welfare activities you wish to perform.

What is an NGO?

A non-profit, or not-for-profit, organization that works to improve the lives of underprivileged section of the society is known as an NGO, or non-governmental organization. NGO's may consider a broad range of societal issues. This might involve development work, human and animal rights, environmental concerns, enhancing children's health and welfare, and simply spreading knowledge of certain socially significant issues or activities.

Having said all of that, NGOs are occasionally founded in order to serve as front organizations for both religious and political causes. Moreover, NGOs are prohibited from paying dividends to their members since they are non-profit organizations. The non-governmental organization must use all of its earnings or profit to fulfil the social cause it supports.

Types of NGO Registration in India

There are three different types of NGO registration in India:

Trust

In India, the process of formally establishing a trust is known as trust registration. A trust is a specific kind of non-profit organization (NPO) that is set up to support and advance certain causes, such as education, healthcare, and community development. The process of registering a trust is governed by the Indian Trusts Act of 1882 and is often administered by a team of professionals and legal experts.

Society

The process of establishing a society is known as "society registration" under the Societies Registration Act of 1860. A society is formed by a group of individuals having a common goal or objective. Societies are founded with the intention of advancing literary, scientific, religious, social, or humanitarian goals.

 Section 8 Company

The Section 8 Company operates as a nonprofit entity. The Companies Act of 2013 governs Section 8 company registration. It is registered to promote trade, arts, sciences, religion, charity, or any other worthwhile cause. Though, it is also not established for profit-making purposes. This type of company is often known as a non-profit organization or non-governmental organization (NGO).

What is the need of NGO Registration?

There is a need for NGO registration because of the following reasons:

• The organization gains credibility, and donors are more inclined to associate with NGOs that are registered since it provides a sense of legitimacy.
• By giving the organization greater publicity, registration of a non-governmental organization (NGO) can aid in the expansion of its local operations.
• The range of available financial and human resources increases if your NGO is registered, and greater volunteers means greater benefits for the NGO.
• You also have an option to register your NGO in India under the Companies Act, 2013. In this way, your NGO will be registered in accordance with the Companies Act and will also provide certain benefits to the directors of the company.
• Certain tax exemptions are also granted to non-governmental organizations (NGOs) in India, enabling enterprises to redirect their tax savings into alternative projects.

What are the benefits of NGO Registration?

The benefits of registering an NGO are mentioned below:

 Less Share Capital

There is no minimum share capital required to register an NGO, because donations may be used to directly finance them. Moreover, the registered NGOs also get donations from individual or orgnisation, and this helps in the overall operations of the entity. Therefore, an NGO does not require to have its own share capital.

Tax Saving

Every NGO either registered as a Section 8 Company or trust gets certain tax exemptions. NGOs benefit from a number of tax exemptions, which enables the business save money on taxes and the same money can be used to fulfil any charitable need or endeavor.

Fundraising and financial support

Non-profit organizations are able to select from a greater variety of fundraising opportunities. They are able to financially solicit donations, grants, and loans from corporations, governments, and foreign organizations. To maintain accountability and transparency, NGOs must be registered with a number of financing organizations and donors.

Tax Exemptions and Benefits

Registered NGOs may be eligible for exemptions and reductions in taxes. These may consist of exemptions from income taxes, charitable contributions, and customs charges. Such benefits lessen the financial burden on the organization and encourage individuals and groups to donate money.

Legal Benefits

Organizations that are recognized as non-profits are granted benefits and rights. A collection of laws administers their organization, operations, and activities. In the event of a dispute, this registration protects the organization against any uncertainties and open the door for legal action.

Collaboration and Networking

By registering and NGO, you may take advantage of networking and collaborative opportunities. After obtaining registration, non-governmental organizations (NGOs) can join networks, alliances, and consortiums that bring like-minded groups together. Through the facilitation of group networking, resource mobilization, and information exchange, you can boost the performance and efficacy of your NGO.

What are the requirements for NGO registration in India?

The requirements for NGO registration in India are mentioned below:

• An NGO must have a minimum of two directors if it is formed as a private limited company.
• A public limited company registered as an NGO must have a minimum of three directors in order to be incorporated.
• The maximum number of members that a private limited company registered as an NGO can have is 200.
• There is no maximum number of members for a public limited company.
• There is no cost to register as an NGO.
• The NGO must have a registered office.
• At least one director of the NGO shall be an Indian resident.
• An NGO is not allowed to share its profit with the members

Required Documents for NGO Registration

The below-mentioned documents are required for NGO registration in India:

• A letter from the founding members asking for registration and outlining the reason for establishing an NGO.
• A certified copy of the Memorandum of Association (MoA).
• A copy of the rules and regulations that members will adhere to.
• Signed copies of the Name, Address, and Occupation of every member of the society.
• Minutes of Meeting.
• A declaration made by the President of the Society, in case of society registration.
• An affidavit from the Secretary or President stating the relationship between subscribers.
• Address Proof of Registered office and a No-Objection Certificate (NOC) from the landlord.
• Id Proofs of at least two employees.
• Name of the society, trust, or company.

NGO Registration Process

The process of NGO registration is discussed below:

Step 1: Acquire DSC and DIN

The prospective Directors of an NGO must provide a DSC to the applicant. To receive a DIN, submit Form DIR-3 to the ROC after obtaining a DSC. The relevant ROC will assign a DIN to the prospective directors following DIR-3's approval.

Step 2: Choosing a Name

Select a name that is both original and fits with the activities of your NGO. Ideally, the name shall be associated with your cause. To prevent any potential legal concerns, be sure the name you choose is not the same as the name of an established NGO or any registered brand. Have a backup list of names in case some of your first picks aren't accepted.

Step 3: Drafting MOA and AOA

The MOA is an important document that describes the goals, purposes, and main undertakings of the society. It should be properly drafted, outlining the NGO's mission. Prepare the AOA, as these will control how the NGO operates within. Membership requirements, member duties and responsibilities, meeting protocols, financial management, and any other pertinent principles should all be covered under these regulations. It is advised to take legal assistance while drafting these documents.

Step 4: Document Submission

You will be required to submit the necessary documents, such as your Memorandum of Association (MOA), Articles of Association (AOA), and other necessary paperwork. The documents will be examined by the Registrar to make sure they abide by all applicable laws and rules.

Step 5: Payment for Registration

Upon submitting the papers, you will be required to pay the registration fee. It is essential to verify the precise pricing structure in your state as the registration charge may differ from state to state.

Step 6: Issue of Registration Certificate

The Registrar will provide a Certificate of Registration for your NGO after reviewing the application and documents submitted. The official acknowledgment of your NGO's existence as a society, trust, or company is provided by this certificate.

Why Choose PSR Compliance for NGO Registration?

Choosing PSR Compliance for NGO registration online will be a smart decision because of its dedication to professionalism, knowledge, and effectiveness in handling the intricacies of the registration procedure. Our team of experts that have a thorough knowledge of the legalities involved in the NGO registration process, PSR Compliance stands out as a reliable partner for NGO registration in India. Our registration approach guarantees a seamless and prompt registration procedure, reducing the chance of any obstacles.

Frequently Asked Questions 

Q1. Does NGO need to pay tax in India?

Sections 12A and 80G of the Income Tax Act, which offer exemptions for earned income and gifts received, allow non-governmental organizations in India to take advantage of tax benefits.

Q2. How does an NGO earn money?

An NGO earns money through fundraising efforts, which are essential to NGOs' survival and prosperity. Membership fees, sales of goods and services, grants from other charitable organizations, state and local governments, private and corporate contributors, contributions from wealthy people, etc. are some of the ways through which NGOs can raise money.

Q3. What is the cost of NGO registration in India?

The cost of NGO registration varies according to the type of NGO and the number of members.

Q4. Can an individual register more than one NGO?

Yes, as long as they fulfill the legal requirements for each registration and are capable of handling the obligations involved in the registration of each NGO, a person may register more than one NGO.

Q5. Can I Register NGO Online?

Yes, an NGO registration online can be done online by using sites like NGO Darpan to submit your application and necessary paperwork. Remember to follow the government's rules for online NGO registration in India.

Q6.  How to apply NGO Registration Online?

To register an NGO online, visit the relevant government portal, complete the registration form with detailed information about your organization, and submit required documents. Follow up for confirmation and further steps.

Q7. What is the Process for Society Registration?

To register a society, follow these steps:

Prepare a Memorandum of Association (MoA) and By-laws according to the Societies Registration Act, 1860.

Establish a Governing Council.

File the registration documents with the Registrar of Societies.

Apply for tax exemptions under Sections 12A and 80G.

Q8. Is GST mandatory for NGOs?

If the yearly turnover of NGOs, or charitable trusts is above Rs. 20 lakhs, they must pay Goods and Services Tax (GST). But, an entity is not needed to register under GST if it supplies products or services that are exempt from the tax.