NGOs are like the 5th pillar of the nation. If you’re planning to start one, then registration is essential and here is why.
Non-profit organisations or NGOs have long been in existence. The term NGO was first coined in 1950 by the United Nations. NGOs have been formed to provide help and support to the underprivileged and those who suffer. NGOs work towards the betterment of society.
India has hundreds of NGOs that work across various sectors that include education, gender, community, and health. If you want to start an NGO, then you must register it.
In this article, we will be unfolding why you should register the NGO and what its benefits are.
Forming a Non-Governmental Organisation
In India, if you want to start NGO, then you can register the same as:
- Company- If the NGO is registered under Section 8 of the Company’s Act 2013, its objective is to promote science, art, education, sports, and social welfare. A registered NGO under Section 8 Company cannot put limits at the end, and the profit earned is put back to promote the objective of the NGO.
- Society – An NGO can be registered as Society as per the Society Registration Act 1860. The process of registration is a bit tedious but is more effective in the long run. Moreover, Section 20 of the Act illustrates that society includes military orphan funds, public museums, and art galleries but there must be well-defined powers and regulations.
- Trust –Another way of registering an NGO is in the form of Trust. Likewise, trust is a separate legal entity. After completion of the documentation process, it takes around two days to 1 week to form the trust.
The requirement for registration of the same will vary, but it is mandatory to register the NGO to reap the privileges of the same.
How to Form an NGO?
Before you go ahead and form an NGO, it is important to understand what the prerequisites are for an NGO.
Preparing the Documents
The first step is to prepare the documents that would be required at the time of NGO registration:
- Name of the organisation
- Objective and mission of the NGO
- Details of the members of the committee
- Information about human resources and staffing
Different Laws Governing NGO Registration
If you are planning to register an NGO, then you must know about the different acts applicable to the same. However, you need to know that there is no uniform law governing the NGOs. Rather, it is spread across three different Acts:
- If you register the NGO under Section 8 Company, it is governed by the Companies Act, 2013
- If you establish Trust, then it is managed as per the Public Trust Act, and
- The Society is governed by Societies Registration Act which is subject to State Amendment.
What Are the Benefits of Registering an NGO in India?
There are several benefits for an NGO once you register it formally. Here is a brief overview of the same:
- An NGO gets the recognition of a separate legal entity
- It gives legitimacy and credibility
- Registration of NGO is a step towards applying for 12AA with Income Tax Department
- NGO registration also gives the leverage of tax exemptions and registration is important for application for 80G and FCRA
- Registering as NGO gives you the credibility to approach prospective donors or institutions
- It differentiates your NGO from the others
- As an NGO, you also establish transparency and accountability
- The government also gives land at a lesser rate for working
- You have the right to bring expertise from outside to attach to your entity
- You can collaborate with different stakeholders
- It makes your NGO recognised in the eyes of people so that you can approach donations and other help.
How to Register an NGO in India with Vakilsearch
Registering an NGO in India is quick, easy, and can be done online with Vakilsearch in 3 simple steps:
- Right Entity Selection – We address all your queries about entity selection and guide you to choose the most appropriate one.
- Online Paperwork – We help you get the entire process of filing and registration completed.
- Registration – We will register the NGO and handle all the formalities (Trust Act, Society Registrations Act or the Companies Act, depending on the entity chosen).
You can start an NGO if you are planning to help society and bring a transformation in it. To start an NGO, there is a need for huge commitment and self-motivated individuals. Therefore, there is a greater need for NGOs in the society to form the establishment which can help the people when in need and spread information for their betterment.