Non-governmental organizations, or NGOs, are organizations that focus on providing services to the public and are not affiliated with any political party. India’s non-governmental organizations (NGOs) are a significant contributor to the country’s growth because they provide a forum for citizens to voice their concerns, promote social change, and have a positive social impact. India has over 3 million registered non-profit organizations, making it one of the largest in the world. In India, organizations can’t operate as NGOs without first registering with the government.
There are two types of non-governmental organizations (NGOs) in India: registered and unregistered. Non-governmental organizations (NGOs) that have not been registered are ineligible for any form of government funding and do not have a legal status. Most of the time, they are small, volunteer-run non-profits primarily involved in social work or charity work. On the other hand, organizations that have been registered with the government and are eligible for funding from the government are known as registered NGOs. These organizations are involved in a variety of activities, including education, health, research, advocacy, and social welfare, and they are typically larger and more structured than unregistered NGOs.
Legal Requirements for NGO Registration in India
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There are legal requirements that need to be met. These are some:
An audited balance sheet and income statement are required, as well as a PAN card and a bank account. The organization must apply with either the Registrar of Societies or the Registrar of Companies, depending on the state in which it is registering. The organization must have a memorandum of association and rules and regulations that clearly outline its objectives and activities. It must have a board of directors and governing body. It must have a registered office address in India.
The Steps Required to Register an NGO in India
The following actions must be taken in order to get an NGO Registration in India:
1. Choosing an appropriate organization name: The selection of an appropriate name is the first step in registering an NGO in India. The NGO’s goals and objectives ought to be reflected in the organization’s name. The name that is being considered should be original and distinct from any already-established NGOs or registered businesses. The organization must apply to the Registrar of Societies or the Registrar of Companies for a name approval certificate after selecting the name.
2. Making the Rules and Regulations and the Memorandum of Association: The organization’s mission, goals, and governing body’s authority are all laid out in the memorandum of association. Additionally, it outlines the members’ and the governing body’s rights and responsibilities. The internal operations of the organization, like how members are appointed and how meetings are held, ought to be outlined in the rules and regulations.
3. Preparing the Governing Body and Board of Directors: The organization’s rules and regulations should form the board of directors and governing body. The members of the board of directors ought to have the authority to make decisions on behalf of the organization. The activities of the organization ought to be able to be controlled and monitored by the governing body.
4. Opening a bank account and obtaining a PAN Card: A Permanent Account Number (PAN) from the Income Tax Department is required for an NGO to register in India. For obtaining bank accounts and filing tax returns, the PAN is a crucial document. After that, the organization ought to open a separate bank account under the NGO’s name.
5. How to Make a Request to the Registrar: The organization must apply to either the Registrar of Societies or the Registrar of Companies, depending on the state in which it is registering, once all of the documents have been prepared. The rules and regulations, audited financial statements, and memorandum of association should all be included in the application.
6. Sending the Registrar All Required Documents: The organization ought to provide the Registrar with all of the necessary documents in addition to the application. This includes the rules and regulations, audited financial statements, and the memorandum of association. The Registrar will issue a registration certificate if the documents are accepted.
7. Getting an Income Tax Department 12A Certificate: The Income Tax Department will require the organization to obtain a 12A certificate following the issuance of the registration certificate. The organization is exempt from paying taxes on donations and contributions thanks to this certificate.
8. Applying to the Ministry of Home Affairs for an FCRA Certificate: The organization must apply to the Ministry of Home Affairs for an FCRA certificate in order to receive foreign funding. The organization can accept contributions from abroad thanks to this certificate.
9. Obtaining a Ministry of Corporate Affairs Registration Certificate: The Ministry of Corporate Affairs should issue the organization with a certificate of registration. To register the organization as a non-profit, this certificate is necessary.
10. Annual Return Filing: Last but not least, the organization ought to submit annual returns to either the Registrar of Companies or Registrar of Societies. This is essential for maintaining the organization’s registration and ensuring compliance with regulations.
Keeping an NGO’s Registration in India Up to Date
After it has been registered, an NGO must follow certain legal requirements to keep its status. Audited financial statements and annual returns must be submitted to the Registrar of Societies or the Registrar of Companies. Additionally, the organization must ensure that its activities are in line with its memorandum of association’s objectives and activities.
The Advantages of Registering an NGO in India Among the many advantages are the following:
- Legitimacy: Since registered non-governmental organizations (NGOs) are recognized by the government, they have credibility with potential donors and other stakeholders.
- Financial Options: Government grants and other forms of funding that can be used for NGOs’ activities are available to registered organizations.
- Tax advantages: Various tax breaks and deductions are available to registered non-profits, which can help the organization save money overall.
- Legal Coverage: Registered non-governmental organizations (NGOs) enjoy a number of legal protections and advantages.
- Increased Attraction: An NGO is listed in the government’s database when it registers, making it easier for potential donors and stakeholders to find information about the organization.
In conclusion, it is worthwhile to register an NGO in India because doing so grants the organization legitimacy, access to funds, tax advantages, legal protection, and increased visibility. Organizations can benefit from a number of registration benefits and ensure that their work is legally recognized by taking the time to register an NGO. Even though registering an NGO in India can be time-consuming and difficult, the benefits far outweigh the effort. Therefore, it is worthwhile to register an NGO in India, and it will continue to be so in 2023.
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