Nowadays, people have knowledge and awareness about non-government organisations. You would also enquire about the many forms of non-governmental organisations that might be recognised in India. Once you have made your decision, verify that it meets your requirements. If this is the case, complete the NGO registration process and then proceed with your strategy. You should be aware of several types of NGOs and their benefits.
NGO registration
Non-governmental organisations, or NGOs, are non-profit organisations that are not affiliated with any government. Governments and international government organisations frequently subsidise them. The main goal should be to help those who are less fortunate. Apart from that, the NGO aims to raise awareness about various issues that are rarely discussed in society and often overlooked. NGOs work to effect change in multiple sectors, including education, public policy, social services, humanitarian aid, healthcare, human rights, the environment, and others.
What is the objective of registering a non-profit organisation?
It makes no difference whether you are running or planning to start an NGO of any type. Regardless of the industry in which you operate, you must have the ultimate objective and intrinsic desire to serve and support others, whether in education, art, skill development, or any other field. You must also mention the recipient, the broader public or a specific group of people. If you want to help individuals and serve society, the best method is to register as a non-profit organisation. The following are some of the motivations for forming a society in India:
- These are self-governing organisations that work to improve society by assisting the poor and those in need.
- You can proceed with NGO registration once you have identified your NGO’s agenda. There are various benefits that NGOs enjoy, which will be covered later.
Different laws apply to the registration of NGO
Several regulations govern NGO registration. In India, three governing acts can be used to register non-governmental organisations:
For trust registration, there is the Indian Trusts Act of 1882; for society registration, there is the Societies Registration Act of 1860; and for Section 8 company registration, there is the Companies Act of 2013.
NGO Registration Types
As previously stated, the NGO registration process is governed by three statutes. As a result, there are Four fundamental categories of NGO registration:
NGO registration was obtained under the Trusts Act of 1882. Generally, governmental charity trusts or private trusts are established to support members of a vulnerable and shifting social class. When assessing whether a trust is private or public, the essential question is whether the beneficiaries are a significant portion of the general public.
Benefits
Public Charitable Trusts in India are governed by no law in the majority of states. Many states, including Madhya Pradesh, Maharashtra, Gujarat, and Rajasthan, have a Public Trust Act. The words Govt. Regd. or Regd can be used by an NGO that is registered under the Trusts Act. The government owns the land. Several tax advantages, such as income tax, are available. The Income Tax Act provides an 80G certificate benefit.
Society Registration
A society is a group of people who meet together for scientific, literary, or charitable reasons or any of the other purposes listed in Section 20 of the Society Registration Act, 1860. Society Registration refers to an NGO that has been registered under the Society Act of 1860.
Benefits
The following benefits are available to NGOs that register under the Society Registration Act of 1860
Legally distinct identities
One of the key benefits of registering a society is that the NGO becomes a legally independent entity. Because of this distinction, members of such NGOs are only liable for their actions, not those of other members.
Limited Liability
The Limited Liability Society is a legal entity distinct from its members. As a result, each member’s liability is restricted to their portion. That is to say, the members’ personal assets cannot be used to settle the firm’s liabilities under any circumstances.
Exemption from taxation
Everyone wishes to be exempt from paying income taxes. Furthermore, society registration is a type of NGO registration that exempts the company from paying income taxes.
Legal safeguards
You will have legal protection once you have registered your society under the Society Registration Act, 1860. It means that no other company or individual can utilise your personal assets, company name, or other similar information. Any person proven to be responsible for a violation would be punished.
Registration of a business under Section 8
Section 8 business registration is a type of non-governmental organisation (NGO) registration obtained under Section 8 of the Indian Companies Act, 2013, and is used to encourage and promote art, science, commerce, charity, religion, or any other worthwhile goal. Furthermore, any profits or other money are used to further the company’s objectives, with no dividends distributed to shareholders.
In fact, Section 8 corporations are formed to pursue the primary goal of promoting the greater good in any of the fields listed.
Benefits
No low capital requirement
Section 8 corporations, unlike other entities such as public limited companies, do not have a minimum capital requirement. However, the company’s capital structure can be adjusted at any time if necessary for the company’s growth.
An entity with its legal status
A Section 8 company, like a Private Limited or other limited corporation, has its own identity and is a separate legal entity from its members. Furthermore, a Section 8 Corporation exists indefinitely.
Exemption from taxes
This type of NGO registration comes with several tax benefits. It is, after all, one of the most significant benefits that NGOs register under Section 8 of the Companies Act, particularly those that receive benefits from the government. Contributors can also claim a tax deduction for donations given to this type of NGO.
Bottom line
Based on the above discussion, it can be concluded that NGO registration, in all of its forms, is done to assist the impoverished or to develop and promote science, commerce, the arts, literature, and other fields. Profits are expected to be invested in the development and well-being of specific societies and welfare initiatives.
