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How Much Does It Cost To Register An NGO In India?

The registration cost for NGO varies, but Vakilsearch has a lot of cost-effective options to make it easy for you to register. Read on to know more.

Introduction

Cost to Register an NGO In India: You might think the registration cost for NGO can be high, but it doesn’t have to be! In this article, we’ll cover the steps you need to take and the costs involved so that you can avoid spending more than necessary.

What Is an NGO?

In India, an NGO is a non-governmental organisation. This means that the NGO is not affiliated with the government, but instead works independently to promote the public good.

There are a few requirements for registering as an NGO in India. First, the NGO must have a purpose or goal that is relevant to India’s society. Second, the NGO must be registered with the Indian government. Lastly, the NGO must have a minimum membership, which can vary depending on the type of NGO. Thus,  it is important to verify the state laws in addition to the national laws.

Registering an NGO

It’s not always easy to figure out registration costs for NGO in India, but thankfully there are a few resources available. The best way to start estimating the registration cost for an NGO is by contacting the Indian Ministry of Home Affairs (MHA) or the National Registration Authority (NRA). Both organisations can provide detailed information on the registration process and costs.

There are three main steps to registering an NGO in India: submitting an application form, paying fees, and undergoing background checks. The application form can be found on the MHA website, and the fees vary depending on the type of organisation being created. The NRA also charges different fees for different types of organisations. For example, NGOs that receive foreign funding must pay additional fees.

The process of getting registered as an NGO can take anywhere from a few weeks to several months, but it’s worth it because it allows NGOs to operate without restrictions and benefit from tax exemptions. Overall, registering an NGO in India is relatively easy and affordable, but it’s important to plan ahead so that everything goes smoothly.

Organisational Structure of NGOs in India

Organisations that operate in India as registered non-government organisations (NGOs) are required to adhere to specific organisational structures, which vary from state to state. In general, however, all NGOs must have a governing body, typically made up of representatives from various stakeholder groups such as volunteers and donors. Additionally, most NGOs are required to have a financial register and an operational budget.

The exact registration cost for an NGO and operating an NGO in India can vary depending on the state in which it is located. However, some common costs associated with setting up and running an NGO include:

– Application fee: In most states, registration cost for NGO can range from $100 to $500, and is based on the number of employees an organisation plans to hire and the amount of resources it intends to use.

– Tax ID number: An NGO must receive a tax identification number (TIN) in order to operate legally in India. The TIN is assigned by the government, and is generally required for all commercial activities carried out by an NGO.

– Registration fees: Each state has its own registration fees, which generally cover the costs associated with verifying an organisation.

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How much does it cost to register an NGO in India?

The most important factor to consider when registering an NGO is its eligibility for government assistance programs. The following are some of the most common grants that NGOs can qualify for:

  • Grant for startups (GST) – This grant is designed to help new businesses start up and grow.
  • National rural livelihoods mission (NRLM) – This program provides financial assistance to help rural communities build sustainable livelihoods.
  • Social development fund (SDF) – This fund provides financial assistance to social welfare projects throughout India.

Other costs involved

In addition to registering with the government, an NGO will also need to pay certain fees and taxes. The following are some of the more common costs:

-Fees for registering as a nonprofit organisation with the government can run anywhere from ₹1,000-5,000.

-There is a registration tax of around 2% levied on all donations made to NGOs. This tax is typically deducted by the NGOs bank or credit card company.

-An annual registration certificate (ARC) must be submitted to the government every year. The cost of this certificate varies, but can often be around ₹10,000 to 15,000.

-A non-profit organisation tax certificate (NOTC) must also be filed with the government every year. The cost of this certificate also varies, but can often be around ₹2,500 to 5,000.

Can individuals register as NGOs in India?

There are several steps that an individual or NGO must take in order to register with the government of India. The process of registering as an NGO can be time-consuming and expensive, but it is worth it if you want to participate in public policymaking. Here are the basics of the registration process:

  • First, you will need to gather all of the necessary documents. These include a memorandum of association (or constitution), a list of directors and officers, and financial statements. You will also need to provide information about your organisation’s goals and objectives, as well as a list of donors
  • Next, you will need to submit an application to the Ministry of Social Justice and Empowerment. Your application will need to include information about your organisation’s name, address, and contact information for members of the board of directors. Your application may also require documentation verifying your organisation’s tax-exempt status in India
  • Once your application is accepted, the ministry will send you a notice confirming your NGO registration. You will then need to appoint a secretary and set up a bank account for your organisation. Finally, you will need to submit quarterly reports to the ministry.

 

Conclusion

It can be difficult to determine the cost of registering an NGO in India, as there are a number of factors that come into play. However, if you’re able to find a helpful resource or two, it will likely be much less expensive than you would expect. We hope that this information has been useful; for more details, contact Vakilsearch today. Thank you for reading!

 

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