Why should you go for registering an NGO?

Why should you go for registering an NGO?

Non-profit organization or NGOs have long been in existence these have been formed to provide help and support to the underprivileged and those who are the sufferer. There are various objectives served b the NGOs. They work towards the betterment of society. The term NGO was first coined in 1950 by the United Nations. In India, if you want to start an NGO, then you need to register them. In this blog, we will be unfolding why you should be registering the NGO and what are the benefits for the same.

Forming NGO-

In India, if you want to start NGO, then you can register the same as :

Trust

Society

Section 8 Company

The requirement for registration of the same will vary, but it is mandatory to register the NGO to reap the privileges of the same.

How to form an NGO?

Before you go ahead and form an NGO, it is important to understand what are the pre-requisites of the same.

1. Prepare the document- The first step is to prepare the document that you would be required to furnish, you would need the following:
2. Name of the organization
3. Address
4. Objective and mission of the NGO
5. Details of the member s of the committee
6. Information about human resource and staffing.

What are the different laws governing the NGO registration?

If you are planning to register an NGO, then you must know about the different acts applicable to the same. However, it is important for you to know that there is no uniform law governing the NGOs, but if you register the NGO under Section 8 company, it is governed by the Companies Act, 2013.

If you establish Trust, then it is managed as per the Public Trust Act, and the Society is governed by Societies Resgiattrion Act .which is subject to State Amendment.

How to register NGO in India :

We have already discussed what the pre-requisites to form an NGO in India are. Here is an illustration of the same:

1. Company- if NGO is registered under Section 8 of the Company’s Act 2013, its objective is to promote science, art, education, sports and social welfare. A registered NGO under Section 8 company cannot put limited at the end, and the profit earned is put back to promote the objective of the NGO.
2. Society- NGO can be registered as Society as per the Society Registration Act 1860. The process of registration is a bit tedious but is more effective in the long run. Section 20 of the Act illustrates that society includes military orphan fund, public museums, maintaining art galleries. But, there must be well-defined powers and regulations.
3. Trust: Another way of registering the NGO is in the form of Trust. Trust is a separate legal entity. While like Section 8 Company and Society, Trust is a separate legal entity. After completion of the documentation process, it takes around two days to 1 week to form the trust.

What are the benefits of registering NGOs in India?

One of the first things that you should know is that registring the NGO is a must. There are several benefits offered to the NGO once it gets formally registered. Here is a brief overview of the same :

1. An NGO gets the recognition of a separate legal entity
2. It gives legitimacy and credibility
3. Registration of NGO is a step towards applying for 12 AA with Income Tax Department. NGO registration also gives the leverage of tax exemptions. Registration is important for application for 80G and FCRA.
4. Regsirtaing as NGO gives you the credibility to approach prospective donors or institutions.
5. It differentiates your NGO from the others
6. As an NGO, you also establish transparency and accountability.
7. The government also gives land at a lesser rate for working
8. You have the right to bring expertise fro outside to attach to your entity.
9. You can collaborate with different stakeholders
10. It makes your NGO recognized in the eyes of people so that you can approach for donations and other help.

As per the data in April 2015, there were a total 42,000 NGOs with the Financial Intelligence Unit (FIU). Starting the NGO is required if you are planning to help the Society and bring a transformation in the Society. To start an NGO, there is a need for huge commitment, self-motivated individuals. There is a greater need for NGO in society to form the establishment which can help the people.