NGOs play a crucial role in India's social and economic development. However, before an NGO can start functioning, it must be registered with the appropriate authorities. In this blog, we will provide a comprehensive guide to NGO registration in India.
Legal Framework for NGO Registration
The legal framework for NGO registration in India is governed by the Societies Registration Act, 1860, the Indian Trusts Act, 1882, and the Companies Act, 2013. These acts provide a legal basis for the establishment and functioning of NGOs in India.
NGOs can choose to register as a society, trust, or a non-profit company. The Societies Registration Act, 1860 governs the registration of societies, which are registered as non-profit organizations for promoting charitable activities. The legal framework for NGO registration in India lays down the legal requirements, procedures, and guidelines that NGOs need to follow for registration. The legal framework also provides the legal basis for the functioning of NGOs in India, including their rights and obligations, accountability, and transparency. NGOs need to comply with the legal framework for registration and functioning to ensure that their activities are lawful and legitimate.
Types of NGO Registration
There are three types of NGO registration in India: society registration, trust registration, and company registration. The type of registration depends on the NGO's objectives, structure, and activities.
- Society Registration
Society registration is the most common form of NGO registration in India. It requires a minimum of seven members and aims to promote charitable activities such as education, healthcare, and social welfare.
- Trust Registration
Trust registration is suitable for NGOs that wish to promote social welfare activities such as education, healthcare, and poverty alleviation. It requires a minimum of three trustees.
- Company Registration
Company registration is suitable for NGOs that aim to promote social welfare and are financially self-sufficient. It requires a minimum of two directors and shareholders.
Documents Required for NGO Registration
The documents required for NGO registration in India may vary depending on the type of organization and the state in which it is being registered. However, some common documents that are generally required for NGO registration include:
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Address proof of the registered office
- Identity proof of the members
- Passport-sized photographs of the members.
- Board resolution authorizing the registration of the NGO
- Bank account details of the NGO
- Registration fee payment receipt
Process of NGO Registration
The process of NGO registration in India can vary depending on the type of organization and the state in which it is being registered. However, the general process can be broken down into the following steps:
- Decide on the type of NGO
The first step is to decide on the type of NGO, whether it should be registered as a society, trust, or non-profit company. This decision should be based on the objectives and activities of the NGO.
- Choose a name for the NGO
The name of the NGO should be unique and not similar to any other registered NGO in the state.
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA)
The MOA and AOA should be prepared, which describe the objectives, activities, and rules of the NGO.
- Obtain the required documents
The required documents should be obtained, such as address proof of the registered office, identity proof of the members, board resolution authorizing the registration, bank account details, and fee payment receipt.
- Submit the application for registration
The application for NGO registration should be submitted to the Registrar of Societies, Registrar of Trusts, or Registrar of Companies, depending on the type of NGO.
- Follow up with the Registrar
After submitting the application, follow up with the Registrar to ensure that the application is processed on time. The Registrar may ask for additional documents or clarification during the process.
- Obtain the Certificate of Registration
Once the application is approved, the Certificate of Registration will be issued. This is a legal document that confirms the registration of the NGO.
- Apply for tax exemptions
After obtaining the Certificate of Registration, the NGO can apply for tax exemptions under Section 12A and 80G of the Income Tax Act, 1961.
- Open a bank account
The NGO should open a bank account in the name of the organization and start its operations.
Conclusion
NGO registration is a crucial step for any organization looking to promote social welfare and charitable activities in India. The type of registration will depend on the NGO's objectives and structure. The process of registration can be complex, but the benefits, such as tax exemption and access to government funding, make it worth the effort.
