NGOs, or non-profit organizations, have existed for many years. NGOs were first defined by the United Nations in 1950. In order to provide help and support to the underprivileged and those who suffer, NGOs were formed. NGOs work towards improving society.
There are hundreds of NGOs in India that work in various sectors, including education, gender, community, and health. In order to start an NGO, you must register it.
The purpose of this article is to explain why you should register your NGO and what its benefits are.
Forming a Non-Governmental Organization:
To start an NGO in India, you will need to register as follows:
The primary objective of a company registered under Section 8 of the Companies Act 2013 is to promote science, art, education, sports, and social welfare. An NGO registered under Section 8 Company cannot impose limits at the end, and the profits are used to advance the objectives of the NGO.
NGOs can be registered as societies under the Society Registration Act 1860. Registration may be a bit arduous, but it is more effective in the long run. In addition, Section 20 of the Act shows that society includes military orphan funds, public museums, and art galleries, but that the powers and regulations must be well-defined.
Trusts can also be used to register an NGO. Trusts are also separate legal entities. After completing the documentation process, trust formation can take up to a week.
Various requirements will apply to the NGO’s registration, but it is mandatory to register the organization to take advantage of the privileges.
How to Form an NGO?
In order to start an NGO, it’s important to know what the prerequisites are.
Preparing the Documents
In order to register an NGO, the following documents must be prepared:
- Name of the organization
- Objective and mission of the NGO
- Details of the members of the committee
- Information about human resources and staffing
Different Laws Governing NGO Registration:
You must know about the different acts that apply to NGOs if you are planning to register one. However, you need to be aware that NGOs are not subject to uniform laws. There are three different Acts:
- If you register your NGO as a Section 8 Company, it is governed by the Companies Act, 2013
- A trust established under the Public Trust Act is managed according to the Act.
- Society registration is governed by the Societies Registration Act, which can be amended by the State.
What Are the Benefits of Registering an NGO in India?
When an NGO is formally registered, it has several advantages. The following is a brief overview:
- An NGO becomes a separate legal entity
- Credibility and legitimacy are gained by it
- NGO registration is a prerequisite for submitting the 12AA form to the Income Tax Department
- In addition to tax exemptions, NGO registration is important to be eligible for 80G and FCRA applications
- Registering as an NGO gives you credibility when approaching prospective donors or institutions
- Differentiating your NGO from the rest
- As an NGO, you also ensure transparency and accountability
- The government also offers land at a lower price to working people
- Your entity has the right to attach expertise from outside
- Collaboration with different stakeholders is possible
- By doing this, you will be able to access donations and other types of help since your NGOs will become visible to the public.
If you want to make a positive impact on society and help it grow, you should start an NGO. Starting an NGO requires great commitment and self-motivated individuals. As a result, NGOs in society are needed to serve as the support system for people in need and spread information for their betterment.