Non-Governmental Organization (NGO)

What is the NGO?

A Non-Governmental Organization (NGO) is a voluntary group, community, or organization that operates independently of the government to promote social welfare, development, human rights, environmental protection, and other charitable activities. NGOs in India can be registered under various legal frameworks, each offering different benefits and operational guidelines.

Types of NGO Registrations

1. Trust:
   
   
   • Governed by the Indian Trusts Act, 1882.
   
   
   • Commonly used for charitable purposes, especially in rural areas.


2. Society:
   
   
   • Governed by the Societies Registration Act, 1860.
   
   
   • Suitable for cultural, educational, scientific, and charitable organizations.


3. Section 8 Company:
   
   
   • Governed by the Companies Act, 2013.
   
   
   • Ideal for organizations intending to promote commerce, art, science, research, sports, social welfare, education, charity, protection of the environment, or similar objectives without the intention of making a profit.

Key Features of NGOs

1. Non-Profit Objective:   Primarily focus on promoting social, environmental, cultural, educational, and charitable activities.


2. Independent Operations:   Operate independently of government control but may receive government funding or collaborate on projects.


3. Legal Entity:   Registered NGOs have a legal identity separate from their members, allowing them to own property, enter contracts, and sue or be sued in their own name.


4. Tax Benefits:   Eligible for various tax exemptions and benefits under the Income Tax Act.

Benefits of Registering an NGO

1. Legal Status:   Provides a formal structure and recognition for conducting activities.


2. Tax Exemptions:   Eligible for tax benefits and exemptions under Sections 12A and 80G of the Income Tax Act.


3. Credibility and Trust:   Enhances credibility and trust among donors, beneficiaries, and other stakeholders.


4. Fundraising:   Easier to raise funds and receive grants from government bodies, international organizations, and private donors.


5. Perpetual Succession:  The organization continues to exist even if the founding members change.

Required Documents for NGO Registration

1. Incorporation Certificate:
   
   
   • Trust Deed
   
   
   • Identity proof of trustees (Aadhaar, PAN, passport, etc.)
   
   
   • Address proof of trustees (utility bills, bank statements, etc.)
   
   
   • Proof of registered office (rental agreement, utility bills, etc.)


2. Society:
   
   
   • Memorandum of Association (MOA)
   
   
   • Rules & Regulations of the society
   
   
   • Identity proof of governing body members
   
   
   • Address proof of governing body members
   
   
   • Proof of registered office


3. Section 8 Company:
   
   
   • Digital Signature Certificate (DSC) for proposed directors
   
   
   • Director Identification Number (DIN) for proposed directors
   
   
   • Memorandum of Association (MOA)
   
   
   • Articles of Association (AOA)
   
   
   • Identity proof of directors and members
   
   
   • Address proof of directors and members
   
   
   • Proof of registered office

Post-Registration Compliance

1. Annual Filing:   File annual financial statements and returns with the Registrar of Societies or Companies.


2. Income Tax Returns:   File annual income tax returns.


3. Audit:   Get accounts audited annually.


4. Compliance with Laws:   Ensure continuous compliance with applicable laws and regulations.


5. Renewal of Registration   Renew the registration as required, depending on the type of NGO.

Conclusion

Registering an NGO provides a formal structure and legal recognition, enabling it to effectively carry out its mission of social welfare and development. By following the steps outlined above and maintaining the necessary documentation, organizations can successfully register and operate as an NGO in India.For more detailed assistance with the NGO registration process, feel free to contact us at ATHWISE Services Private Limited. Our expert consultancy team can guide you through the documentation and application process efficiently.

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