Types of NGO Registration and Its Benefits

The organisation which are independent of government involvement are known as Non- Government Organisation or NGO. However, if you want to know more about the types of NGO and its benefits, then keep on reading.

Laws that government NGO registrations in India

• Section 8 Company Registration
• Societies Registration Act, 1860
• Indian Trusts Act, 1882 

Types of NGO Registration and their Benefits

There are three ways through which you can register NGOs in India:

1.Section 8 Company Registration:

The 1^st way to register an NGO by Section 8 Company of the Indian Companies Act, 2013. Such companies are established with the motive of promoting arts, commerce, education, charity, protection of the environment, sports, protect the charity, religion, trade, etc. But, the earnings of this company are not used by the shareholders, rather it is used by the company for promotion work.

Benefits of Section 8 company registration

• No minimum capital required to establish NGO as per section 8 company.
• Zero Stamp Duty
• Exemption to the donors
• A registered partnership firm can become a member of its capacity and obtain Directorship.
• Section 8 Company does not need to suffix Limited or Private Limited, next to its legal name. It can be registered with names that have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation.
• Donation & Funding

2.Society registration

The 2^nd way to register is by the Society Registration Act 1860 states that you can register NGO in the form of society. However, to form a society, individuals come together to promote scientific purpose, charitable purpose, educational, health and various other objectives, as mentioned in Section 30 of the Society Registration Act 1860.

Benefits under Society Registration

• Each member of the society is responsible for their actions and not the members. However, a registered society gets a separate legal identity.
• As society has a separate legal identity, the liability of members is limited to their share only.
• Benefits levied on income tax.
• Legal protection, nobody can use your name, and in case there is an issue as such, they will be large for a penalty.

3.Trust Registration:

The 3^rd way of registration can be done via the Indian Trusts Act,1882 known as Trust Registration. However, these are public charitable trusts and are usually formed when the matter of land or property is involved. Indeed, usually, the usage of trust is for the relief of poverty, education, medical aid, etc.

Benefits of Trust Registration

• Tax benefits
• 80G certificate benefit
• White money for constriction of building
• Benefit on Service Tax or Income Tax
• Trusts get land from the government
• Trust registered under the Trust Act uses Gov. registered name

How can we help you?

Visit the portal of Online Legal India™ for Section 8 Company registration. Our top-notch CA/CS, who will assist you with the NGO registration online from any corner of India.  We are economical and give budgeted services for ones who are willing to start up a company/business or any other kind of organization. 

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