NGO

Types Of NGO Registration And Its Benefits

If a charity/non-profit is your ultimate calling, registering an NGO is the natural next step. Keep reading to learn how to take your social entrepreneurial skills to the next level.

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If you are looking forward to starting an NGO in India, then the first thing that you would require is an NGO registration. To this end, you would also require information about the different NGOs in India. Further, in this article, we will explore the different types of NGOs in India and underline their advantages. 

What Are the Different Laws That Govern NGO Registrations in India?

The following laws govern non-profit organizations in India:

  • Societies Registration Act, 1860
  • Indian Trusts Act, 1882
  • Companies Act, 2013 

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Purpose of Registering NGOs in India

NGO’s are self-governing bodies that aim towards the betterment of society by helping the poor and the needy. Additionally, if you desire to serve society and help the people, then the best way to achieve this goal is by incorporating an NGO. 

The ultimate goal of an NGO is to help minorities, the underprivileged, and the destitute and provide them with an opportunity for growth.

Once you have defined the agenda of your NGO, you can go ahead with NGO registration. Moreover, there are several benefits that NGOs enjoy which will be discussed ahead.

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Types of Non-Governmental Organization Registrations

Public Trust Registration

A trust is a non-governmental organisation wherein a property is transferred to a trustee by the previous owner. Additionally, in the case of public trusts, the ultimate objective of transferring the property is to provide benefits to societies. Further, the registration for a trust can be done via The Indian Trust Act of 1882.

Public charitable trusts are usually formed when a piece of land or property is involved. Usually, the purpose of a trust is aimed at providing relief from poverty, promoting education, or medical aid, etc.

Advantages of Trust Registration

  • Trusts can apply to get land from the government
  • Long-term taxation benefits
  • Lesser audit formalities 
  • Trusts are eligible to apply for 80G certificate benefits
  • Administrative autonomy

Society Registration

Another way in which you can register an NGO is in the form of society. A society is a group of individuals who get together to deliberate, govern, and act jointly for a common good. Moreover, societies are typically formed to advance philanthropic activities aimed towards the betterment of sports, music, culture, religion, art, education, and so on.

To form a society in India, individuals must come together for promoting science, social work, charity, and any of the other objectives mentioned in Section 30 of The Societies Registration Act, 1860.

Benefits under Society Registration

  • A registered society assumes a separate legal identity. Each member of this society is responsible for their actions and not of other members
  • Income tax benefits and exemptions
  • Freedom to accept funds and donations
  • Ease in property acquisition 
  • Societies once formed can also be dissolved easily without the burden of complicated compliance or paperwork.

Section 8 Company Registration

The third way to register an NGO is through the sanctioning of Section 8 of the Companies Act of 2013. These companies are established to promote charity, religion, trade, etc. However, the earnings of this company are not used by the shareholders, rather it is used by the company for the promotion of social work. 

Benefits of Section 8 Company Registration

  • There is no minimum capital requirement for establishing  a Section 8 company
  • Similar to trusts and societies, a Section 8 company is also recognized as a separate legal entity
  • Likewise, Section 8 companies also enjoy tax benefits and exemptions
  • It is optional for Section 8 companies to use suffixes such as Pvt.Ltd or Ltd.
  • No stamp duty during registration
  • Easy transfer of ownership 
  • When compared with any other NGO structure, a Section 8 company is more credible. It’s MOA and AOA are sacrosanct. Moreover, since the central government governs the registration process, its legal structure is considered more trustworthy compared to society, NGO, or trust.

How to Register an NGO in India

Registering an NGO in India can be done online quickly without any hassle with the help of Vakilsearch in 3 simple steps:

  1. Right Entity Selection – We address all your queries pertaining to entity selection and help you choose the most appropriate one
  2. Online Paperwork – We help you complete the entire documentation, filing, and registration process with minimal effort from your side
  3. Registration – We will register the NGO and handle all the post-compliance formalities.

Talk to Our Experts

Forming an NGO in India can be simplified with the help of Vakilsearch’s professional expertise in NGO registration and compliance matters. Get in touch with us today!

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