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Non-Governmental Organisation (NGO) registration in India involves various legal structures depending on the nature and objectives of the organisation. One common structure is Society Registration, which is governed by the Societies Registration Act, 1860. Societies are typically formed for the promotion of social welfare, arts, education, and other charitable activities. For a society, a minimum of seven members is required, and the registration is done with the Registrar of Societies. Another structure is Section 8 Company Registration, governed by the Companies Act, 2013, which allows for the formation of a non-profit company that can be either a private limited company or a public limited company. The registration process involves obtaining approval from the Registrar of Companies and adhering to the compliance norms set forth by the Government of India.
NGOs aiming for national and international recognition often register with the NGO-Darpan Portal, managed by NITI Aayog. This portal facilitates transparency and ensures that NGOs can receive government grants and foreign contributions. The NGO DARPAN ID is a crucial credential for gaining legitimacy and accessing resources from the Government of India and other governmental organisations. To establish a robust identity, NGOs also pursue Trademark Registration to protect their brand and ensure exclusive rights to their name and logo. Additionally, NGOs must comply with tax regulations by obtaining GST Registration if their annual turnover exceeds the threshold limit. NGOs can also list their entities under NGO DARPAN for better visibility and networking.
The governing structure of an NGO is defined by its Governing Body, which includes office bearers such as the President, Secretary, and Treasurer. Each member of the governing body is required to provide identity proof, typically an Aadhar Card, during the registration process. Special attention is given to organisations working for Persons with Disabilities, ensuring they comply with specific laws and gain support from government schemes.
NGOs in India are instrumental in addressing issues such as poverty, education, healthcare, and environmental conservation. They operate independently from the government, relying on donations, grants, and volunteer support to implement their programs and initiatives. The primary roles of NGOs in India include:
Starting an NGO in India requires meeting specific eligibility criteria. These criteria ensure that the NGO operates legally and ethically. The key eligibility requirements include:
To successfully register an NGO in India, you must prepare and submit the following essential documents:
The registration of NGOs in India is governed by specific Acts, depending on the type of organisation:
Societies Registration Act, 1860
Governs the registration and functioning of societies engaged in charitable activities.
Indian Trusts Act, 1882
Applicable to NGOs formed as public charitable trusts, outlining their registration and management.
Companies Act, 2013
Governs NGOs registered as Section 8 companies, focusing on promoting charitable objectives.
Each Act provides guidelines on registration procedures, management structures, and compliance requirements for NGOs in India.
NGOs can be classified based on their orientation towards various causes and issues:
NGOs can also be classified based on their operational scope and scale:
Registering an NGO in India involves several steps to ensure legal compliance and operational legitimacy:
Registering an NGO in India offers several advantages:
Raising funds is essential for NGOs to sustain their operations and support their causes. Here are effective ways to raise funds for NGOs:
Vakilsearch simplifies the NGO registration process in India by providing comprehensive legal assistance and services:
Step 1: Expert Guidance
Avail expert advice on choosing the appropriate legal structure for your NGO, whether it's a society, trust, or Section 8 company registration.
Step 2: Document Preparation
Get expert assistance in preparing and filing necessary documents such as the Memorandum of Association (MOA), Articles of Association (AOA), and registration applications.
Step 3: Application Submission
Our team will handle the entire registration process, including submitting applications to the relevant authorities and following up on approvals.
Step 4: Compliance Support
Get ongoing compliance support, ensuring your NGO adheres to regulatory requirements and maintains legal status.
Step 5: Online Platform
Use our online platform for easy document submission, tracking application status, and accessing legal resources.
Note: Avail guidance on post-incorporation compliance, trademark registration, GST registration, income tax returns, and other legal requirements.
NGO Registration Fees include various costs associated with the registration process, such as government charges and professional fees. Understanding these fees is vital for proper budgeting and planning.
The cost for NGO registration starts from ₹ 7499 + Service Tax.
What is the main purpose of an NGO?
The main purpose of a non-governmental organisation (NGO) is to address social, environmental, or political issues that are not adequately managed by governments or for-profit entities. NGOs work to promote human rights, provide humanitarian aid, support sustainable development, and advocate for policy changes to improve societal conditions.
Is GST applicable for NGOs?
Goods and Services Tax (GST) is applicable to NGOs in India if they provide taxable goods or services. However, specific exemptions and provisions exist for charitable purposes. NGOs must register under GST if their annual turnover exceeds the prescribed threshold, but many charitable activities are exempt from GST to promote public welfare.
What are the rules and regulations of an NGO?
NGOs in India must comply with various rules and regulations, including registration under acts like the Societies Registration Act, 1860, or the Indian Trusts Act, 1882. They must maintain proper accounts, file annual returns, adhere to Foreign Contribution Regulation Act (FCRA) guidelines if receiving foreign funds, and ensure transparency and accountability in their operations.
Who regulates NGOs in India?
In India, NGOs are regulated by the Ministry of Social Justice and Empowerment (MSJE). The Ministry of Home Affairs regulates foreign contributions under the FCRA Act. The Registrar of Societies or Charity Commissioner oversees societies and trusts, respectively. Compliance with the Income Tax Department's regulations is also required for tax exemptions.
What are the eligibility criteria to start an NGO?
To start an NGO in India, founders must be at least seven members for a society or two trustees for a trust. They must prepare a Memorandum of Association or Trust Deed, stating the NGO's objectives and rules. Registration with the relevant authority and compliance with legal formalities, including PAN and bank account setup, are essential.
Can a foreign national open an NRE account in India?
A foreign national cannot open a Non-Resident External (NRE) account in India. NRE accounts are specifically designed for Non-Resident Indians (NRIs) to manage their income earned abroad in Indian currency. Only individuals of Indian origin or Indian citizens living abroad qualify for NRE accounts.
What are the tax benefits for NGOs in India?
NGOs in India can avail of several tax benefits, including exemptions under Section 12A and 80G of the Income Tax Act, 1961. Donations to NGOs with 80G certification are eligible for tax deductions for donors. Additionally, NGOs engaged in charitable activities may be exempt from GST for specific services.
Can an NGO work in multiple states or districts after registration?
An NGO registered under the Societies Registration Act, 1860, can operate in multiple states or districts across India. However, it must amend its Memorandum of Association to include the areas of operation and comply with local laws. It should also inform the relevant authorities about its expanded activities.
Can I register an NGO without a permanent office address?
While registering an NGO in India, providing an office address is typically required. However, it is possible to use a residential address or a temporary address initially. The address must be updated with the authorities once a permanent office is established to ensure compliance with regulations.
What is the process to apply for FCRA registration for an NGO?
To apply for FCRA registration, an NGO must be active for at least three years and submit audited financial statements. The application is made online through the FCRA website, providing details about the organisation, its activities, and foreign funding sources. Approval is granted by the Ministry of Home Affairs.
Who can Sign Up on the NGO Darpan?
Any NGO in India can sign up on the NGO Darpan portal, provided they are registered as a society, trust, or a non-profit company. Registration requires a valid PAN, registration certificate, and details of key members. This platform helps NGOs gain recognition and access to various government schemes.
What are the facilities provided by NGO Darpan?
NGO Darpan provides facilities like access to government grants, improved transparency, and better networking opportunities with other NGOs and government bodies. It offers a digital interface to update organisational details, track the status of grant applications, and obtain unique IDs for official recognition.
What is CSR Form 1 registration?
CSR Form 1 registration is a mandatory process for NGOs to receive Corporate Social Responsibility (CSR) funds from companies. NGOs must fill out this form to provide details about their organisation, activities, and compliance with regulatory requirements, ensuring their eligibility to receive and utilise CSR contributions.
How to get a CSR-1 certificate?
To get a CSR-1 certificate, an NGO must register on the Ministry of Corporate Affairs website, fill out the CSR Form 1, and submit necessary documents like the registration certificate, PAN, and details of activities. Upon verification and approval, the Ministry issues the CSR-1 certificate, authorising the NGO to receive CSR funds.
How do you conduct an NGO audit?
Conducting an NGO audit involves verifying financial statements, reviewing accounting records, and ensuring compliance with legal and regulatory requirements. Auditors assess the accuracy of financial transactions, adherence to budgetary allocations, and proper utilisation of funds. The audit ensures transparency, accountability, and proper governance within the NGO.
Authors
Written by Nithya, Reviewed by Sushmitha Pawar. Last updated on Oct 16 2024, 10:37 AM
Sushmitha Pawar,BA.LLB (Hons), a senior legal expert specialises in NGO registration, NGO compliance, FCRA, trust, society, and fundraising.
Nithya Ramani Iyer,a criminologist and writer, serves as the SME and manages communications at Vakilsearch. Drawing from her experience at Seasearch Intelligence and Legal domains, she enriches our content with insightful perspectives.
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