An NGO or a Not-for-Profit organization or a Trust can be created to endorse for any useful missions such as sports, education, research activities, animal rescue or shelters, orphanages and rehabilitation centers and more. The term Not for Profit does not state that this NGO or Trust is not permitted to generate profit or an income, but the action to apply the said income to the promotion of their mission and goodwill work. The income or profits of an NGO/Trust are not meant to be distributed to the promoters or shareholders
There are various types of Ngo
Trust Level NGO: “NGO” stands for “Non-governmental Organization” while “trust” is the word trust itself. 2. NGOs aid the government with the programs they can't already do while trusts are not dependent on the government.
Society Level NGO: A society works at a small level. They are formed by mutual consent of a mere 20 to 30 members. They are associated with a particular agenda or motive which can sometimes be attained in a short duration.
National Level NGO: National NGOs — an NGO that exists in only one country; they are rare. These include national organizations such as YMCAs and YWCAs, professional associations, and similar groups. Some have state or city branches, and assist local NGOs.
The following are the major advantages of incorporating a private limited company in India versus other entity types.
Avail tax exemption: Registering the company as an NGO under the Companies Act, 2013 helps in availing several taxation benefits. NGOs are exempt from several taxes, which helps the organization utilize the saved money in further projects.
Right to acquire assets: When your organization is officially registered, it is permitted to acquire land, own fixed assets, and/or acquire liabilities under its common seal. It is against the law for an unregistered organization to buy, hold, and/or sell land anywhere.
No minimum share capital requirement: No minimum share capital requirement is needed to function independently. NGOs can be directly funded with the charity made to them. This means that NGOs do not need a higher share capital to function independently.
Protection from personal liability: You can buy, acquire, and register assets and stakes in the name of your NGO. This is a way to protect your organization from unlimited liability due to untoward occurrence, such as foreclosure, bankruptcy, judgment debt, or divorce, etc.
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.
A Bank account
Registered as a Trust
Trust NGO: two people
Society NGO: Seven people
National NGO: Eight people
The following are the steps involved in registering a NGO in India:
Objective of the NGO Deed.
NGO Deed on Proper Stamp Value.
Documentation for the Trust Registered Address. In the case of rented property (NOC from the Landlord is required).
Select An Appropriate Name
Preparing Memorandum Of Association
Obtain The Registration Certificate
| By laws of the NGO |
| KYC (Aadhaar, PAN, Voter ID, Email Id, 3 Passport Size Photo, Signature, Mobile No.) |
| Utility Bill (Electricity/Telephone/GAS Bill) |
1. How to Register a Company in India?
Digital Signature Certificate (DSC) Step 2: Director Identification Number (DIN) Step 3: Registration on the MCA Portal. Step 4: Certificate of Incorporation.
2. Are two directors necessary for registration of company?
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a one person company, if you are the sole owner of the company.
3. Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
4. What is the minimum capital needed to do company incorporation?
There is no minimum capital required for starting a private limited company.
5. Does one have to be present in person for Company Incorporation?
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
