A non-governmental organisation (NGO) is a charitable organisation that works to improve society as a whole. Depending on the activity, it can be established as a Trust, a Society, or a Non-Profit Corporation. NGO refers to all non-profit organisations in India, including Trusts, Societies, and Section 8 Companies. Non-profitable companies, which refers to a conventional business that does not make a profit, are occasionally mistaken with these.
NGO Registration Service
A non-governmental organisation (NGO) is a charitable organisation that works to improve society as a whole. Depending on the activity, it can be established as a Trust, a Society, or a Non-Profit Corporation. NGO refers to all non-profit organisations in India, including Trusts, Societies, and Section 8 Companies. Non-profitable companies, which refers to a conventional business that does not make a profit, are occasionally mistaken with these.
Benefits of NGO Registration
A registered non-profit gains legal status and is responsible for the funds it receives. When a person donates money to a charity trust, for example, the money is received in the name of the trust and used for the trust’s purposes. Assets can be received under anyone’s identity and utilised for their personal profit in an unregistered company.
The ethical, social, and legal values of our society are reinforced by an organisation that is recognised as an NGO. A bank account in the name of an NGO is a necessary prerequisite for its operation. It is necessary to be registered as a Trust, Society, or Section 8 Company in order to open an account. To apply for a tax exemption from the Income Tax Authority, you must first register as a non-profit organisation.
Registration of NGO in India
Trust
Trust, or more frequently known as Charitable trust, is one of the methods in which an NGO can be registered. The “trustor” or “settlor” creates a legal entity by transferring assets to the second party, the “trustee,” for the benefit of the third party, the “beneficiary.” Trusts are established to assist and support the most vulnerable members of society. Any group of people can form a trust, and there are no special rules governing public trusts in India; however, some states, such as Maharashtra and Tamil Nadu, have their own Public Trust Act.
Societies
A society is an entity formed by a collection of people who are committed to fostering science, the arts, literature, social welfare, and useful knowledge. Furthermore, societies contribute to the creation of military orphan funds, as well as the upkeep of public museums and libraries. The Societies Registration Act of 1860 governs societies. To be qualified for tax exemption, they must be registered with the Registrar of Societies in their particular state.
Companies in Section 8
A Section 8 corporation resembles a trust or a society. Section 8 companies are formed to promote the arts, science, trade, sports, social welfare, religion, charity, and environmental protection, among other things. They are a charitable organisation that is registered under the Companies Act of 2013. They have a higher level of trustworthiness among government agencies, donors, and other stakeholders.
Documents required for NGO Registration
Specific documentation must be submitted before a registered deed can be delivered to an NGO.
Registration of a Trust
The following documents are required for trust registration:
- A bill of electricity or water that specifies the address to be registered.
- At least two members of the company’s identities must be verified. Voter ID, Driver’s License, Passport, and Aadhaar Card are examples of acceptable proof.
Registration of Societies
The following documents are required for a society registration:
- Proof of the office’s address.
- All nine members must provide confirmation of their identity, which can include:
- Aadhaar card, driver’s licence, and a copy of a passport
Section 8 Company
The following documents are required for a Section 8 company registration:
- The name of the company that needs to be approved.
- Proof of the office’s address. It could be a utility bill, a water bill, or a tax receipt.
- All Directors must provide verification of their identity, which can include:
- a driver’s licence
- Passport photocopy
- ID is required to vote.
- Comparison of Trust, Society and Section 8 Company
FAQ
What should you register: a trust, a society, or a corporation?
It’s best to tailor your application to the type of employment you wish to undertake. For the ideal solution, speak with one of our specialists at Vakilsearch to learn more about which registration process is suitable for your NGO.
What is the procedure for registering a non-profit organisation?
You’d need to choose a name first, then check to see whether it’s already taken. If the desired name does not yet exist, you can apply for a Certificate of Incorporation with the Registrar. Vakilsearch is the most convenient approach to register your Non-Governmental Organization. We handle everything for you, so you don’t have to worry about running about for the process.
What are some additional options for starting and establishing a non-profit organisation?
If you don’t want to start an NGO, there are other ways to contribute to society. You can create a club, volunteer, join a local chapter of an existing NGO, or even serve as a fiscal sponsor.
Why do you need to register as a non-profit organisation?
There are numerous reasons why registering an NGO is preferable. One of the most important in the field of finance. You will receive funds from a variety of sources as an NGO. You must deposit the funds received from donors in a bank. You’ll need some paperwork to open a bank account for a company or a non-profit organisation. An NGO’s registration provides you with paperwork proving that funds have been received in the NGO’s name.
Is it possible for any government employee or officer to join an NGO?
Yes, there is an answer to this question. Government employees and officers are allowed to join NGOs as long as the organisation is not anti-government. There are a few guidelines that these persons must follow as well, one of which is to ensure that the NGO is not for profit.
