Why register an NGO in India?

Benefits

A registered NGO gains the legal status and becomes accountable for the funds received. For instance, when an individual donates funds to a charitable trust, it is received under the name of the organization and used for the trust's activities. In an unregistered firm, the assets can be received under anyone's name and may be used for their own profit.

An organization that is registered as an NGO reinforces the ethical, social and legal norms of our society.

The basic requirement for running an NGO is to have a bank account under its name. In order to open an account, it is mandatory to be registered as a Trust, Society or Section 8 Company.

The registration of an NGO is necessary to seek tax exemption from the Income Tax Authority.

Types of NGO

NGOs may be classified by their orientation and level of operation.
Orientation

♦ Charities: Often a top-down effort, with little participation or input from beneficiaries, they include NGOs directed at meeting the needs of disadvantaged people and groups.

♦ Service: Includes NGOs which provide healthcare (including family planning) and education.

♦ Participation: Self-help projects with local involvement in the form of money, tools, land, materials, or labor

♦ Empowerment: Aim to help poor people understand the social, political and economic factors affecting their lives, and to increase awareness of their power to control their lives. With maximum involving.

Level of operation

♦ Community-based organizations (CBOs) are popular initiatives which can raise the consciousness of the urban poor, helping them understand their right to services, and providing such services.

♦ City-wide organizations include chambers of commerce and industry, coalitions of business, ethnic or educational groups, and community organizations.

♦ State NGOs include state-level organizations, associations, and groups. Some state NGOs are guided by national and international NGOs.

♦ National NGOs include national organizations such as YMCAs and YWCAs, professional associations, and similar groups. Some have state or city branches, and assist local NGOs.

♦ International NGOs range from secular agencies, such as Save the Children, to religious groups. They may fund local NGOs, institutions and projects, and implement projects.[18]

Three Laws of NGO Registration

Registration of NGO in India

Trust

One of the ways in which an NGO can be registered is Trust or more commonly called Charitable trust. Trust is a legal entity created by the “trustor” or “settlor” who transfers the assets to the second party or “trustee” for the benefit of the third party or “beneficiary”. Trusts are formed to help and support the deprived sections of the society. Any group of individuals can register a trust and in India as such there are no specific laws to govern the public trust, however, some states like Maharashtra and Tamil Nadu have their own Public Trust Act.

Societies

A society is an entity that can be created by a group of individuals united in their cause for promoting science, arts, literature, social welfare and useful information. In addition, societies work for creating military orphan funds, maintaining public museum and libraries. Societies are governed by the Societies Registration Act, 1860. They must be registered with the respective state Registrar of Societies to be eligible for tax exemption.

Section 8 Companies

A Section 8 company is similar to a trust and society. The objectives of a Section 8 Companies are to promote arts, science, commerce, sports, social welfare, religion, charity and environmental protection. They are registered under the Companies Act, 2013 for charitable purpose. They have better credibility among government bodies, donors and other stakeholders.

NGO Registration Methods in India - Trust, Society, or Non-profit Company [Section 8 Company]

A Detailed Process

In India, anybody is free to do social activities without forming an association or organization. But when an individual wants to create a group that involves volunteers, activities, and resources, it becomes important to have proper management in place. To run such companies, trusts and Societies in the correct manner, a certain set of rules need to be followed.

Essential documents for online society registration & trust registration

Before a registered deed is delivered to an NGO, submission of specific documents is required.

Trust Registration

For the trust registration, the following papers are mandatory:

• --A bill of electricity or water stating the address that needs to be registered.
• --The identity proof of at least two members of the company. The proof can be:Voter ID
• --Driving License
• --Passport
• --Aadhaar Card

Once the payment for the registration is done, it takes about 8 to 10 days for online registration to be completed under the Indian Trust Act – 1882. Before the deed becomes valid throughout the country, the settler has to deliver a presentation at the registrar's office.

Note:On the scheduled date for registration, the Author of the Trust shall be present in the Register Office for registration

Society Registration

For a society registration, the following papers are essential:

• --The name of the society.
• --Address proof of the office.
• --Identity proof of all the nine members which can be:
• --Driving License
• --Copy of Passport
• --Voter ID
• --Aadhaar card
• --Two copies of the Memorandum of Association and By-laws of the society.

Note:Once the payment for the registration is done, it takes about 8 to 10 days for drafting the MoA and By-laws of the Society. Thereafter it takes 21 to 30 days for the Society to be registered.

Section 8 Company:

For a Section 8 company registration, the following papers are essential:

• --The name of the Company for approval.
• --Address proof of the office. It can be electricity or water bill or house tax receipt.
• --Identity proof of all the Directors which can be:
• --Driving License
• --Copy of Passport
• --Voter ID
• --Aadhaar card
• --Aadhaar card The Memorandum of Association and Articles of Association of the Company.

Note:Once the payment for the registration is done, it takes about 8 to 10 days for drafting the MoA and AoA of the Society. Thereafter it takes about 2 months for the entire Company registration to be completed.

NGO DARPAN

The NGO Darpan (NGO-PS) is a platform of interface between Voluntary Organization (VO) / Non Governmental Organization (NGO) and key Ministries / Departments / Government Bodies. Later it is proposed to cover all Central Ministries / Departments / Government Bodies.

The key Ministries/Departments/ Government Bodies in the first phase are M/o Culture, M/o Health & Family Welfare, M/o Social Justice & Empowerment, M/o Tribal Affairs, M/o Women & Child Development, D/o Higher Education, D/o School Education & Literacy, Council for Advancement of People's Action and Rural Technology (CAPART), National AIDS Control Organisation (NACO) and Central Social Welfare Board (CSWB).

This is a free facility offered by the NITI Aayog in association with National Informatics Centre to bring about greater partnership between government & voluntary sector and foster better transparency, efficiency and accountability.

Following are procedure to register yourself to NGO DARPAN :
Already Signed Up NGOs from old portal :

• --Click on Forget password link
• --Provide any of three fields Pan number, Mobile or Email in userid field
• --Input the OTP received at your mobile number, confirm it
• --Create your new password
• --Sign in to the portal.
• --All existing details like, Profile, Office bearers details, Source of Funds, NGO registeration details have been ported into new website and will be available after signing in.

Apply Online for NGO Grant

Already Signed up NGOs who registered at new portal only :

• --Click on Sign In Link
• --Provide any of three fields Pan number, Mobile or Email in userid field
• --Provide your password
• --Access your registered details
• --In case your forget the password, there is option to Signing In using OTP, where OTP is sent to registered mobile number (alternated mobile number).

New NGOs for Sign Up :

• --Provide your NGO Name
• --Provide Email (OTP is sent for confirmation)
• --Provide Mobile Number, where OTP will be sent for confirmation
• --Enter security code displayed at the website
• --Next Step, OTP will be asked to confirm
• --Please enter NGO Pan Number
• --After confirmation of OTP, Next screen will allow you to create a password.
• --Sign In to portal with your credentials generated at above steps.