NGO Registration
An NGO is registered as a society under Indian Society’s Act 1860 and it takes one or two months for the registration and the society is formed both at the state and the central level. A minimum of 7 members are required for the same.
REGISTRATION
After the prerequisites have been met, the NGO can be registered as per the provisions of any three of the Acts i.e. (Companies Act (2013), Societies Registration Act (1860) or Indian Trusts Act (1882).
NGO as a ‘Section-8 Company’: If the NGO is intended to be in the form of an organization ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, the NGO can be registered as a ‘Section-8 Company’. Thereafter, it has to function as a not-for-profit organization and thus, all profits generated during the course of its functioning have to be applied for promoting the objectives of the organization i.e. no dividend can be paid to the members of the company.
NGO as a Society: An NGO with seven or more members can be registered as a society (under the provisions of Societies Registration Act). Even though the process of registration is more cumbersome and complex than other methods, a society gives more flexibility in its functioning and working.
NGO as a Trust: A charitable trust offers the simplest process of formation. It is not legally required to get a trust registered. However, registered charitable trusts enjoy certain benefits and exemptions such as income tax benefits. The subject-matter of a trust must be property transferable from one person to another.
SOCIETY REGISTRATION
A society is an association of individuals combined that unites together for some communal purpose i.e. for advancement of charitable activities. The Societies can be formed for different objects such as for the promotion of science,literature, or the fine arts for instruction, the diffusion of useful knowledge,the foundation or maintenance of libraries or reading-rooms for general use among the members or open to the public or public museums and galleries of paintings and other works of art, collections of natural history, mechanical and philosophical inventions, instruments, or designs.
Societies Registration Act, 1960 and came into force on 6-6-1961, by replacing the earlier act and was enacted before evolving the method of bifurcation of power between Central and States (Entry 32 of List II of Seventh Schedule) to the Constitution. After enactment of Entry 32 of List II of Seventh Schedule, which provides that unincorporated literary, scientific, religious and other societies and association is a state subject, normally their should be a state laws to regulate the activities of promotion of literature, science, or the fine arts. If in any state, no such law is enacted, then the Central act should be applicable. The Act has been specifically repealed in many States and those States have their own Acts.
How the Registration of a Society is done in India
Usually a minimum of seven or more person are required for a society to be formed. Other than persons from India, foreigners, different companies, and other registered so cities can also take part for subscribing to the memorandum of a society. A society can also be registered or maybe unregistered like partnership firms. But only registered society can be able to get hold of vested properties or if needed can file a suit against the society. The registration of society are managed by the State Government , so if an application for registration society is to be made then it should be done to concerned authority in the state where the registered office will be situated. The founding members or the people who have formed society must prepare the rules and regulations and the memorandum and must decide and agree on the name that should be given for the society.
NITI AAYOG Certificate
The aim of the government is to maintain the databases of the organizations/trust/society that are working for the welfare of the society and asking for the fund to practice their activities. However, the major benefits of getting registered under NitiAayog are as following:
- At the time of FCRA registration, a NitiAayog unique ID is required, however, at present it is optional.
- If you want to avail the grants offered by the government then it is mandatory to get registered under NitiAayog.
- It increases the credibility of the NGO/trust/society which helps them to get a donation from the general public.
DOCUMENTS REQUIRED FOR NITI AAYOG REGISTRATION
Following is the list of all the necessary documents required for NGO Darpan Registration in India:
- Duly certified copy of the Trust Deed
- Copy of the MOA (Memorandum of Association) of the company
- Copy of the AOA (Articles of Association) of the company
- Copy of Certificate of Registration of Society
- PAN Card of NGO/VO
- Details on FCRA
- Valid contact information – email, phone number
- Last 5 years details of all source of funds from government agencies
- Aadhar Card and PAN Card of all the members.
Chairman of Organization and Chief Functionary Details
80G and 12A REGISTRATION
SECTION 12A OF THE INCOME TAX ACT, 1961
Registration of trust or charitable institutions under section 12A/12AA certifies that the Income Tax authorities recognise the registered institution or trust as having been incorporated or established for a charitable purpose.
The effect of such recognition is that the respective institutions are exempted from paying income tax, subject to the satisfaction of certain other compliance requirements as per law.
Section 12A deals with institutions and trusts registered before 1996, and Section 12AA deals with institutions and trusts registered after 1996. The NGO’s have to obtain a 12A certification to avail tax benefits, regardless of whether they are constituted as a society, trust or not-for-profit company.
SECTION 80G OF THE INCOME TAX ACT, 1961
Registration of trust or charitable institutions under Section 80G does not provide any direct benefits to them. The trust or charitable institutions register themselves under Section 80G to enable the donors who contribute to them to avail certain tax benefits on their contributions.
The registration under section 80G of charitable institutions is to incentivise their donors to make contributions. However, only the NGOs that have registered under both Section 12A and 80G are eligible for availing of government funding.
CSR REGISTRATION
Corporate Social Responsibility (CSR) has emerged as a powerful tool for businesses to contribute positively to society while also enhancing their own sustainability and reputation. However, the impact of CSR initiatives is greatly amplified through proper CSR registration. Let’s delve into why CSR registration is essential.
First and foremost, CSR registration lends credibility and transparency to corporate philanthropic efforts. By registering their CSR activities with relevant authorities, companies demonstrate their commitment to social responsibility in a formal and accountable manner. This transparency not only builds trust with stakeholders but also ensures that CSR funds are allocated and utilized efficiently for maximum social impact.
Moreover, CSR registration facilitates collaboration and partnerships between businesses, nonprofits, and government agencies. Registered CSR initiatives become part of a larger ecosystem of social development, allowing stakeholders to identify synergies, share best practices, and collectively address pressing social challenges. This collaborative approach amplifies the scale and effectiveness of CSR efforts, leading to greater societal benefits.
Additionally, CSR registration enhances accountability and measurement of social impact. Registered CSR projects are subject to reporting and evaluation requirements, enabling companies to track and assess the outcomes of their initiatives. This data-driven approach not only helps companies make informed decisions about future CSR investments but also enables them to demonstrate tangible results to stakeholders and the public.
Furthermore, CSR registration promotes compliance with regulatory frameworks and industry standards. By adhering to registration requirements, companies ensure that their CSR activities align with legal mandates and international guidelines for responsible business conduct. This commitment to compliance fosters a culture of ethical and sustainable business practices, enhancing the overall reputation and competitiveness of the organization.
In summary, CSR registration is not just a regulatory obligation but a strategic imperative for businesses committed to making a meaningful difference in society. By registering their CSR initiatives, companies can enhance credibility, foster collaboration, drive accountability, and ultimately, drive positive social change at scale.
FCRA REGISTRATION
The Foreign Contribution (Regulation) Act, or FCRA, serves as a critical regulatory framework in India governing the acceptance and utilization of foreign contributions by individuals, associations, and organizations. FCRA registration holds immense importance for entities seeking to engage in philanthropic activities with international support. Let’s explore why FCRA registration is essential.
Firstly, FCRA registration opens doors to global philanthropy. It allows organizations to receive foreign contributions from individuals, foundations, and corporations outside India, thereby expanding their resource base and amplifying their impact on social causes and development initiatives. This access to international funding enables organizations to undertake larger projects, address complex challenges, and drive sustainable change at scale.
Moreover, FCRA registration enhances transparency and accountability in the utilization of foreign funds. Registered organizations are subject to stringent reporting and compliance requirements, ensuring that foreign contributions are utilized for their intended purposes and in accordance with regulatory guidelines. This transparency not only builds trust with donors but also strengthens the credibility and legitimacy of the organization’s work both nationally and internationally.
Additionally, FCRA registration facilitates collaboration and partnerships with global stakeholders. Registered organizations can engage in joint initiatives, knowledge sharing, and capacity building efforts with international counterparts, fostering cross-border exchange of ideas, resources, and expertise. These partnerships enable organizations to leverage diverse perspectives and innovative approaches to address complex social challenges more effectively.
Furthermore, FCRA registration promotes regulatory compliance and good governance practices. By adhering to FCRA regulations, organizations demonstrate their commitment to upholding ethical standards, financial integrity, and legal compliance in their operations. This commitment enhances the organization’s reputation, mitigates risks of regulatory scrutiny, and instills confidence among donors and beneficiaries alike.
In summary, FCRA registration is not just a legal requirement but a strategic enabler for organizations seeking to engage in global philanthropy and social impact initiatives. By obtaining FCRA registration, organizations can access international funding, enhance transparency and accountability, foster collaboration and partnerships, and uphold regulatory compliance, ultimately driving positive change and transformation in communities across India and beyond.