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NGO REGISTRATION
an NGO, which stands for “Non-Governmental Organization,” is a type of non-profit entity that operates independently of the government and is primarily focused on pursuing social, charitable, educational, or humanitarian objectives. NGOs play a crucial role in addressing various social and developmental issues in the country.
NGOs are non-profit organizations, which means that they do not operate for the purpose of making a profit or distributing dividends to their members. Any surplus funds generated by an NGO are reinvested into the organization’s charitable activities.
NGOs in India engage in a wide range of activities aimed at addressing societal problems, promoting welfare, and contributing to the overall development of the country. These activities can include poverty alleviation, education, healthcare, environmental conservation, human rights advocacy, women’s empowerment, and more.
NGOs can be registered under various laws
There are several ways to register an NGO in India. The most common forms of registration are:
TRUST
A trust is a legal entity created by a trust deed, which is a document that outlines the purpose of the trust and the powers of the trustees. Trusts are governed by the Indian Trusts Act, 1882.
SOCIETY
A society is a group of people who come together for a common purpose. Societies are governed by the Societies Registration Act, 1860.
SECTION 8 COMPANY
A Section 8 company is a non-profit company that is registered under the Companies Act, 2013. Section 8 companies are eligible for certain tax benefits.
Benefits of NGO Registration
Registering an NGO is important because it gives the organization a legal identity which helps it to be taken more seriously. This means that people are more likely to trust the organization and it can work within the law.
Legal Recognition
NGOs need to register to establish legal status and obtain credibility with the public, government, financial institutions, and donors. Registration enables NGOs to access government funding, open bank accounts, and sign contracts. This step is crucial in making a positive impact on society and achieving lasting results.
Funding and Grants
NGOs that are registered can get money from different places like the government, companies that want to do good things, and groups outside the country that give money. Sometimes groups that give money want the NGO to be registered before they give them any money.
Legal Protection
NGOs that are registered have legal protection to settle any disputes, and can enforce their rights and interests. They can make contracts, own property, and take legal action for the organization.
Greater Opportunities for Collaboration
Non-profit organizations that have been registered with the government can take part in various government programs that aim to improve social development, reduce poverty, and enhance healthcare and education, among other things. Through this participation, NGOs can participate in discussions about policies and exert an impact on decision-making processes.
Organizational Structure and Governance
When organizations register, they usually need to set up a system for how they will run things and make decisions. This makes it easier to manage the organization well and keep it going for a long time.
Tax Exemptions
Non-Profit Organizations (NGOs) that have been officially approved can get tax advantages and exclusions. They can receive money that is considered as tax-free contributions under a certain part of the Income Tax Act called Section 80G. This encourages people and companies to donate money to help the organization's work.
Easy Bank Account Opening
Banks may ask for proof of registration to open a bank account for NGOs. A separate bank account helps keep track of the money received to fund the NGO's activities and ensures transparency in the financial management of the NGO.
Access to Government Programs and Schemes
Nonprofit organizations that are registered with the government can join in on government programs to help people in areas like education, health, reducing poverty and more. By being involved, these organizations can share ideas and help make decisions about policies.
Publicity and Recognition
NGOs that are approved by the government can be located on their websites. This makes it easier for people who want to help or receive help to find them. It also means more people will know about the NGOs and what they are trying to do, which could lead to more support from the public.
Enhanced Trust and Credibility
Registering your NGO can help create trust and make people believe in your organization. This shows that your NGO can be trusted to do things in a fair and honest way. When people see that you’re honest, they may be more likely to help or work with you.
