Non-Government Organizations (NGOs) play a vital role in addressing social, environmental, and cultural challenges. Establishing an NGO in India is an impactful way to bring about positive change, but it requires a clear understanding of legal frameworks, registration processes, and operational strategies. CAPLUS, specializes in guiding individuals and organizations through the intricacies of starting and managing an NGO effectively.
What is an NGO?
An NGO, or Non-Government Organization, is an independent entity that operates without government control. NGOs work toward various causes like education, healthcare, poverty alleviation, environment, women empowerment, and disaster relief. Unlike businesses, NGOs are not profit-driven; instead, they focus on achieving social objectives.
Types of NGOs in India
NGOs in India can be classified into three main types based on their registration:
1. Trust: Governed by the Indian Trusts Act, 1882, trusts are ideal for philanthropic activities. They require a minimum of two trustees to form.
2. Society: Societies are governed by the Societies Registration Act, 1860. They are suitable for promoting education, art, culture, and sports.
3. Section 8 Company: These companies operate under the Companies Act, 2013, and are ideal for charitable or not-for-profit objectives. Section 8 Companies enjoy additional benefits like tax exemptions.
Registering your NGO provides numerous advantages:
1. Legal Identity: A registered NGO is a recognized legal entity, allowing it to own assets, open bank accounts, and enter into contracts.
2. Tax Benefits: Registered NGOs are eligible for various tax exemptions, such as Section 12A and 80G certifications..
3. Public Trust: Registration enhances credibility, making it easier to secure donations and funding.
4. Government Support: Registered NGOs can collaborate with government bodies and receive grants for projects.
Clearly outline the purpose, vision, and mission of your NGO. This helps in deciding the suitable type of registration (Trust, Society, or Section 8 Company).
Select a distinctive name for your NGO to avoid conflicts with existing entities. Ensure the name aligns with your objectives.
Prepare the necessary documents, such as the Memorandum of Association (MoA), Articles of Association (AoA), or Trust Deed, depending on the registration type.
CAPLUS provides affordable solutions without compromising on quality.
For a Trust, submit the Trust Deed to the local Sub-Registrar
For a Society, file the MOA and Rules & Regulations with the Registrar of Societies.
For a Section 8 Company, apply to the Ministry of Corporate Affairs (MCA).
After registration, apply for a PAN (Permanent Account Number) and open a bank account in the NGO’s name for financial transactions.
Register for certifications like Section 12A and 80G to avail tax exemptions and attract more donors.
Compliance Requirements for NGOs
Annual Financial Statements: Maintain proper records and submit annual financial reports to authorities.
FCRA Registration: Required for receiving foreign donations.
Income Tax Filings: File income tax returns yearly.
Audit Reports: Ensure accounts are audited by a certified Chartered Accountant.
CAPLUS offers expert guidance to NGOs in meeting these compliance needs seamlessly.
How CAPLUS Can Help You
CAPLUS, is a one-stop solution for individuals and organizations looking to establish an NGO. Our services include:
NGO registration (Trust, Society, or Section 8 Company)
Documentation support (MoA, AoA, Trust Deed)
Tax exemption certification (12A, 80G)
FCRA registration
Compliance management and annual filings
Legal advisory and funding guidance
With CAPLUS, you can focus on your mission while we handle the technical and legal aspects.
1. Social Impact: Address pressing societal issues and contribute to community development.
2. Tax Exemptions: Save on taxes through government-sanctioned benefits.
3. Funding Opportunities: Gain access to grants, donations, and CSR funds.
4. Networking: Collaborate with government bodies, corporates, and other NGOs.
5. Recognition: Build a reputable platform for initiating large-scale projects
What is the minimum number of members required to start an NGO?
How long does it take to register an NGO?
Can an NGO earn profits?
What is FCRA registration?
Do NGOs have to pay taxes?
Can a single person start an NGO?