Non-Governmental Organization (NGO) - 3 Types of NGO Registration in India (2024)

• Posted On

  May 11, 2022

• Posted By

  ByZarana Mehta

• Category
  • Company law

Introduction

If you want to form an NGO (Non-Governmental Organization) in India, the most important thing you will need is NGO registration. You would also inquire about the many forms of non-governmental organizations that might be recognized in India. Once you have made your decision, check to see if it meets your requirements. If this is the case, complete the NGO registration process and then proceed with your strategy. In this article information such as what is NGO Registration in India, Types of NGO Registration in India, and the Benefits of NGO Registration in India.

What is NGO Registration?

A Non-Governmental Organisation (NGO) is a charitable organization that works to improve society in general. Depending on the activity, it can be established as a Trust, a Non-Profit Company (Section 8 Company) or a Society.

NGO refers to all non-profit organizations in India, including Trusts, Societies, and Section 8 Companies. All NGO/NPO are eligible for the Income Tax Exemption.

Benefits of NGO Registration in India

• Possession of assets

• Ownership transfer

• Preservation of names

• Personal liability protection

• Avail a Tax Exemption Benefits

Different types of NGO Registration in India

• Trust Registration

• Section 8 Company Registration

• Society Registration

Trust Registration

Trust Registration is the process of registering a non-profit organization under the Trusts Act of 1882. The public charity trusts or private trusts are established to help members of an insecure and changing social class. When deciding whether a trust is public or private, the final question is whether the beneficiaries are a significant portion of the public. A trust can be established for a variety of reasons, including poverty or distress assistance, education, medical treatment, and so on.

• Benefits of Trust Registration

1. Government agencies can provide land to trusts.

2. In India, Public Charitable Trusts are governed by no law in the majority of states. Public Trusts Acts exist in numerous states, including Madhya Pradesh, Maharashtra, Gujarat, and Rajasthan.

3. Trust Registration also eligible for Income Tax Exemption and eligible to avail benefits from government schemes.

4. Under the Income Tax Act Trust, an 80G certificate can be used to obtain white money for building construction.

Section 8 Company Registration

Section 8 of the Indian Companies Act, 2013, is the third option to form an NGO. These businesses exist to defend charities, religions, and trade, among other things. However, the earnings of this corporation are not distributed to the shareholders; rather, they are used to promote the company. You can form a public limited company (which requires three directors) or a private limited corporation (2 directors).

• Benefits of Section 8 Company Registration

1. As a section 8 business, there is no minimum capital needed for forming a non-profit organization.

2. A Section 8 company, like a trust, receives special recognition as a separate legal entity.

3. The tax benefit is one of the advantages that every NGO enjoys. Aside from stakeholders, contributors to the NGO may be eligible for tax benefits for their contributions.

4. The stamp duty that would otherwise apply to the registration process is waived for NGOs.

5. There is no requirement for a title. Furthermore, unlike public limited and private limited businesses, section 8 firms are not required to use a suffix to their names.

6. There is more trustworthiness. A Section 8 company is more respectable than any other type of non-profit organization. Because the section 8 firm is not governed by the federal government, the MOA and AOA remain sacred. As a result, its legal framework is more trustworthy than a social NGO or trust.

7. Section 8 Company appreciates the ease with which ownership can be transferred. People can transfer ownership of both moveable and immovable assets without restriction under Section 8 of the Income Tax Act of 1961.

Society Registration

Another approach to registering your NGO is through the society’s system. Individuals collaborate to pursue scientific purposes, charitable purposes, and numerous other aims to form a society, as stated in Section 30 of the Society Registration Act of 1860.

• Benefits of Society Registration

1. Society registration is a type of NGO registration in which the company is exempt from paying income taxes, which is something that everyone desires.

2. One of the major benefits of registering a society is that it becomes a separate legal entity in the perspective of the law.

3. Each member of this society is solely responsible for their own acts.

4. Because of the distinction made, members of such NGOs are only liable for their own activities and not those of other members.

5. Society NGO is a legal organization distinct from its members. As a result, each member’s liability is restricted to their portion. That means the assets of the members cannot be used to settle the firm’s liabilities under any circ*mstances.

6. Members’ obligation is restricted to their portion because society NGOs are a separate legal body.

7. Once you have registered your society under the Society Registration Act of 1860, you will have legal protection. It means that no one else can utilize your company name, assets, or other information.

Conclusion

In India, forming an NGO (Non-Governmental Organization) is a simple process if you have all of the necessary documentation and papers in order. The information provided above describes the many types of NGO registration available in India, as well as the benefits of growing one. As a result, the paperwork requirements may differ depending on the sorts of NGOs with which you wish to register.