Non-Governmental Organizations (NGOs) play a crucial role in social welfare and development. In India, NGOs can be registered under three legal structures:
- Section 8 Company (under the Companies Act, 2013)
- Society (under the Societies Registration Act, 1860)
- Trust (under the Indian Trusts Act, 1882 or relevant state laws)
This guide provides a detailed legal overview of forming an NGO, including legal provisions, documentation, benefits, capital requirements, and income tax exemptions. 💼📑
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1. Section 8 Company 🏢
A Section 8 Company is a non-profit entity registered under the Companies Act, 2013 that promotes charitable objectives like education, social welfare, art, environment, and research.
Legal Provisions ⚖️
- Governed by Section 8 of the Companies Act, 2013 📜
- Regulated by the Ministry of Corporate Affairs (MCA) 🏛️
Benefits 🎯
✅ Limited Liability – Members are not personally liable for debts.
✅ No Minimum Capital Requirement – Can be started with any amount.
✅ Better Credibility – More recognized than a Trust or Society.
✅ Eligible for Tax Exemptions – Under Income Tax Act, 1961.
✅ Government Grants & CSR Funding – Eligible for financial support.
Documents Required 📄
📌 Director Identification Number (DIN) of all directors.
📌 Digital Signature Certificate (DSC) of all directors.
📌 PAN & Aadhaar Card of directors.
📌 Registered Office Address Proof (rent agreement or ownership proof).
📌 No-Objection Certificate (NOC) from the property owner.
📌 Memorandum of Association (MoA) & Articles of Association (AoA).
Capital Requirement & Maintenance Charges 💰
💸 No minimum capital required.
💸 Annual Compliance Costs – ₹10,000 to ₹50,000 depending on filings and audit fees.
💸 Financial Statements & Tax Filings required yearly.
2. Society Registration 🏛️
A Society is a group of individuals coming together for charitable, cultural, religious, or social purposes. It is registered under the Societies Registration Act, 1860.
Legal Provisions ⚖️
- Governed by the Societies Registration Act, 1860 📜
- Requires a minimum of 7 members to form a society 👥
Benefits 🎯
✅ No Minimum Capital Requirement
✅ Suitable for Large Memberships
✅ Greater Transparency & Democratic Functioning
✅ Eligible for Government Grants & Foreign Funding (FCRA approval required)
Documents Required 📄
📌 PAN & Aadhaar of Founding Members
📌 Memorandum of Association (MoA) outlining objectives
📌 Rules & Regulations Document
📌 Registered Office Address Proof
📌 No Objection Certificate (NOC) from the Landlord
📌 Declaration Signed by the President of the Society
Annual Maintenance & Compliance 📊
💸 Annual Report Filing with the Registrar.
💸 Proper Accounting & Auditing Required.
💸 Compliance Costs:₹5,000 – ₹20,000 per year.
3. Trust Formation 🔏
A Trust is an entity where a settlor transfers property to trustees for the benefit of society. It can be registered as a Private Trust or a Public Charitable Trust.
Legal Provisions ⚖️
- Indian Trusts Act, 1882 (for Private Trusts) 📜
- Public Trusts Act (State-Specific for Charitable Trusts)
- Requires Minimum Two Trustees (no upper limit) 👥
Benefits 🎯
✅ Easy & Cost-Effective Registration
✅ Ideal for Religious, Educational & Welfare Activities
✅ Trust Properties Are Legally Protected
✅ Eligible for 12A & 80G Tax Exemptions
Documents Required 📄
📌 Trust Deed (on Non-Judicial Stamp Paper)
📌 PAN & Aadhaar of Settlor & Trustees
📌 Registered Office Address Proof
📌 NOC from the Property Owner
📌 Photographs of Trustees
Annual Maintenance & Compliance 📊
💸 Financial Statements & Audit Reports Required
💸 Income Tax Returns (ITR) Filing Mandatory
💸 Compliance Costs: ₹5,000 – ₹30,000 per year.
Income Tax Exemptions for NGOs 🏦
To enjoy tax benefits, NGOs must obtain the following under the Income Tax Act, 1961:
✅ 80G Certificate – Allows donors to claim tax deductions.
✅ 12A Registration – Exempts NGO from paying income tax.
✅ FCRA Registration (For foreign contributions) – Required under Foreign Contribution Regulation Act, 2010.
Process for Tax Exemptions 📝
1️⃣ Form 10A – For 12A Registration (via the Income Tax e-filing portal).
2️⃣ Form 10G – For 80G Approval.
3️⃣ Submission of Audited Financials, PAN, and Registration Certificate.
4️⃣ Approval from the Commissioner of Income Tax (Exemptions).
5️⃣ Issuance of 80G & 12A Certificates 📜✅
Let Us Help You Register Your NGO! 🚀
Need expert guidance for NGO registration? Our legal experts & consultants are here to assist you with seamless registration, documentation, compliance & tax exemptions. 📞 Contact us today and start your social impact journeyhassle-free! 🤝💙
📧 Email Us: [email protected]
📞 Call Us:(+91) 890 222 4444/8250 422 880
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