What are the benefits of registering an NGO in India?
• An organization registered as an NGO will be responsible for reinforcing the social, legal, and ethical norms of our society.
• An NGO that has been registered will gain legal status and will become responsible for the funds that they have received. For example, when funds are donated by a person to a charitable trust, they will be received under the organization’s name and utilized for the activities of the trust. On the other hand, in the case of an unregistered organization, it will be possible to receive the assets under the name of any person and can be used for their benefit.
• It will be imperative to have a bank account under the name of the NGO to run it. Moreover, it has to be restored as a Society, Trust, or Section 8 Company for opening an account.
• It will be imperative to register an NGO to seek tax exemption from the IT authority.
What has to be done before applying for NGO registration?
• Get hold of DSC (Digital Signature Certificate) – It will be imperative to digitally sign the registration forms before filling the form online. For this reason, the proposed directors have to provide digital signatures. Certifying agencies will be issuing DSC and the applicants must get hold of the Class 2 or Class 3 DSC category. There will be a variation of the charges for obtaining DSC which will depend on the certifying agency.
• Apply for DIN (Director Identification Number) – It will be imperative for the applicants to make an application for a DIN for the proposed company’s directors. One has to submit scanned documents such as self-attested copies of PAN, address proof of the directors, and so on together with the application form. One can submit the application form online on the MCA portal. A company secretary, practicing chartered accountant, or cost accountant has to attest to the documents.
NGO registration process
1. It will be essential for the applicant to get hold of a DSC of an NGO’s proposed directors. After getting the DSC, the file form DIR-3 has to be submitted with the ROC to get a DIN.
Documents that have to be attached for the DIN application:
A voter’s ID card, Passport, driving license, Aadhar card, electricity bill, PAN card, business address proof, house tax receipt, society’s name, and so on will be required for address and identity proofs.
2. After the DIR-3 has been approved, a DIN will be allotted by the respective ROC to the recommended directors.
3. Following this, one has to file Form INC-1 along with the ROC for applying for the name of the company. It will be possible to apply as many as 6 names from which one name will be allotted by the ROC.
4. After the ROC has been approved, form INC-12 has to be filed to make an application for a license for the NGO.
Documents that have to be attached with INC-12
• Declaration according to Form INC-15
• Declaration according to Form INC-14
• Projected expenditure and income for the subsequent 3 years.
• Draft AOA (Article of Association) and MOA (Memorandum of Association) according to Form INC-13
5. Following the approval of the form, the NGO license is going to be dispensed in Form INC-16.
6. Once the NGO license has been delivered to the applicant, he or she will be required to file SPICE Form 32 for incorporation with ROC. After checking the documents, the ROC will issue a Certificate of Incorporation along with a unique CIN (Corporate Identification Number).
It will be possible for the applicant to register his company as an NGO by sticking to these above-mentioned steps.
Eligibility for starting an NGO
• At least 3 directors needed for incorporation as a public limited company
• At least 2 directors are required for the NGO to be established as a private limited company
• In the case of a private limited company that can be a maximum of 200 members.
• In the case of a public limited company, this number has no limits.
• One does not have to pay any fees in case he wants to register his company as an NGO.
TaxSavvy happens to be amongst the top NGO service providers in India which has been providing its services for the past few years. We have a team of qualified and dedicated employees providing top-class services on NGO issues throughout India. We are known to provide NGO services which consist of NGO registration, NGO grant support, NGO funding support, project proposal design for funding, and so on.
We provide certain benefits which we have mentioned below.
- We help to minimize share capital which will be required by all companies to function autonomously.
- Moreover, we aid in saving taxes to a great extent. We help the companies to save taxes and thus this money can be invested in further projects.
- We are known to provide a mechanism that will possibly work in case the government has failed.
- Our company is known to support grassroots initiatives along with responding to and recognizing the realities of the local individuals.
- We can communicate at all levels. This implies that we can interact with the residents very easily and also convey their messages to the government's top levels.
If you need more information, make sure to come in touch with our official website at the earliest.