NGO NGO

What Is the Cost of Registering an NGO in India?

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Many applicants have doubts regarding the registration fees for different types of NGOs. The article deals with all such confusion and provides a brief of the types of NGOs and the fees it charges to register.

NGOs (Non-governmental organisations) are operated in almost every country of the world. It is a group of several people with charitable and other social purposes. Several members identify the problem, raise fund for it, if required and then resolve it without government support. Although governments often support them financially, most raise their fund.

Providing adoption centers, building nursing homes, and maintaining museums and other public places are some functions these organisations perform. Many types of organisations are based on working level, registration type, etc. The registration process for NGOs is simple but takes a lot of time to certify by the central government of India. Usually, the time duration for the procedure depends on the type of NGO being registered.

Here is some information that one should know while registering for an NGO.

What Is An NGO?

As already mentioned, an NGO  is a group of people who pool their investment and effort for society’s betterment and raise people’s live standards. One of the best features of such organisations is that they not only work for humans but also spend their precious time and money on improving the living quality of animals and plants while taking care of the environment.

An NGO may have a specific target, like Environment conservation, protecting human rights, reducing alcoholism, etc., or they may not have such particular targets. NGOs play a huge role  in the socio-economic development of the country. At the same time, many of them even employ some work to maintain the documentation of the organisation and other works.

Apart from that, NGOs helps citizens to meet the basic necessities of living like providing shelter, food, clothes, clean water and many other to ensure a healthy life for them. According to various reports and stats, NGOs and other pressure groups have significantly contributed to women’s empowerment. They have made them self-sufficient and independent and, hence, have broken the stereotype that ‘females cannot live without their male counterparts. Thus, these non-profit organisations are very important in society as they try to assist the government in improving people’s lives while maintaining sustainable development.

Types of NGO Registrations

There are mainly three types of NGO registration. These three types have different models of working and providing their facilities to the needy. The way of helping these NGOs can be different by the main aim or motto of all of them is the betterment of society by comprising with the needs of future ones, be it animals, plants or human beings, they care for all.

  • Trust Registration 

The registration that is governed by the Trusts Act 1882 is called Trust Registration. There are two kinds of trust, private and public. A public trust is a group of people who pool their income to uplift the lower section of society. A single individual then falls under Private Trust. A trust can deal with any type of societal problem and challenges, but generally, they are set up to cope with Education, distress, poverty, medical problem, etc. Various requirements must be fulfilled to file an NGO as a certified organisation. Firstly, the trust should have at least two trustees to register as a public trust. Secondly, several requirements are there from the state government as well as the NGO must full fill them.  The last is the mention of the trust deed, which should contain the aim, motto and management mode.

  • Society registration 

The norm controls these registrations in accordance with Society Registration Act, 1860. A society is formed when several people come together for the improvement of science, literature, charity etc. the complete list of these can be found in section 20 of the Society Registration Act, 1860. Unlike a trust, there are no further divisions of this type of registration. To register as a legal Society in India, the association should have at least seven members. The number can exceed the limit but should not decrease. Suppose a foreign society is looking to extend its branch to India. In that case, the organisation must subscribe to the Memorandum of Society to establish itself in India successfully.

Apart from that, society in India is not obligatory. One may not choose to register their society; it depends on the founder and other concerned personalities. But registering society with the Central government will open the gates for legal protection, governmental funds and other schemes by the central and state government. 

  • Section 8 Company Registration 

There are various ways to register as a Section 8 company. One may register as a private limited, public limited, one-person company or limited liability partnership. The profit the company earns is again invested in improving the efficiency of operation, and no stipend is paid to the company’s members.  MOA(Memorandum of association) and AOA (Article of Association) are the most important documents that an organisation should have to verify as a Section 8 company that falls under the category of Section 8 of the Indian Companies Act, 2013

How Much Does It Cost To Register An NGO

The time of registration varies with the different types of registration along with the registration cost for NGOs. The fees for the registration are inclusive of government taxes, fees for government officers and professionals’ charges. The registration fee for Section 8 Company is ₹ 4,999, while registering a trust may cost you around ₹13,999. A society registration charges about ₹12,999 inclusive of all taxes and charges.

Conclusion:

These were the charges and fees that professionals charge in order to register your NGO. The charge may increase or decrease according to the state as many states provide subsidies for NGOs while some may have higher taxes as compared to other states.To verify your NGO, an experienced law practitioner and skilled lawyer are a must. Many lawyers have very costly services, while others do not have much expertise in this matter. Thus to bridge this gap, Vakilsearch provides the best law service that deals with the legal, tax, and many other sectors related to the same. One may visit their website and mobile application readily available on the Internet and check out their amazing services at a very economical price that suits everyone with every budget.

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