QwikFilings.com offers the fastest Trust, Society & NGO Registration package in India. A NGO company is a Section 8 Foundation registered under The Companies Act 2013 or a Society under The Societies Registration Act 1860 or Trust under The Indian Trusts Act 1882. NGO can be registered online in less than 10 days at just Rs. 1999/-
NGO is a non-profit organization that functions independently. In India, NGOs can be registered as a Society, Trust and section 8 companies depending on the activity an individual wishes to undertake. A Non-Profit Organization is a voluntary group or institution that works for a social cause. GOs are involved in carrying out the activities at a wide range only for the benefit of the society at large. The activities performed by the NGOs include but are not limited to-Environmental, Social, Advocacy and human rights work. NGOs work to promote social or political change on a wider scale and also play a critical part in developing society, improving communities, and promoting citizen participation. There are three legal ways an NGO can be registered, which are as follows: -
(3) Section 8 Companies
NGO Registration is mandatory for the organization which is planning to work for the welfare of society. An NGO is a non-government organization with a charitable purpose, for the progress of society worldwide. It can be started as a Trust, a Society or Section 8 Company (a Non-Profit Company ) depending on the project you want to undertake. NGO’s could have a broad variety of interests of society in mind. Below-mentioned are the benefits of NGO Registration in India:-
Avail Tax Exemption
Registering the company as an NGO under the Companies Act, 2013 helps in availing several taxation benefits i.e. NGOs are exempt from several taxes which as result helps the company save money from taxes and utilizing the saved money in further projects.
Right to Acquire Assets
When your organization is officially registered, it then becomes permitted to acquire land, own fixed assets and/or acquire liabilities under its common seal. It is against the law for an unregistered organization to buy, hold/sell land anywhere.
No Minimum Share Capital Requirement
No minimum share capital requirement is needed to function independently. NGOs can be directly funded with the charity made to them. This means that NGOs do not need a higher share capital to function independently.
Protection from Personal Liability
You can buy, acquire & register assets and stakes in the name of your NGO. This is a very well-groomed way of protecting by hand from unlimited liability for untoward occurrence such as foreclosure, bankruptcy, judgment debt, or divorce etc.
Transfer of Ownership
Under the Income Tax Act 1961 NGOs registered under the Companies Act, 2013 are not restricted to transfer their ownership or claims of the interests earned.
As a corporate body, your organization’s transactions and engagements with the community will improve. The NGO can also sue to enforce its legal rights or be sued via its registered trustees.
The purpose of forming Section 8 Company is to promote, encourage, and nourish activities related to art, science, sports, commerce, charitable activities, etc. Section 8 Company can be categorized as a Non-Governmental Organization. These companies enjoy the liberty of being treated as ‘Limited Company’, though, word ‘Limited’ is not added at the end of their names. Concisely, Section 8 companies work in the direction of promoting needy communities and sectors in India. These Companies are not liable to give income or dividend to its members. These are the important documents you need for NGO Registration in India.
In India, an individual is free to perform social activities without structuring an entity or organization. However, an individual wants to form a group that involves participants, activities, and resources, it is essential to have proper management in place.
To run the NGOs in the form of (Companies, Trusts, and Societies) in an accurate manner, a certain set of rules need to be followed. To register any of the below-mentioned ways, an applicant needs to follow the various laws. NGO registration can be done in 3 ways:-
These are the most important steps for NGO registration in India
The Companies Act, 2013 has made it mandatory for all the Section 8 Company Companies to adhere to Section 8 Compliance with the MCA (Ministry of Corporate Affairs).
Appointment of Auditor Every Section 8 Company needs to appoint an auditor to take care of books of accounts for the company. Appointment of Auditor is must for every Section 8 Company.
Maintenance of Books of Accounts Every Section 8 Company is expected to maintain its books of accounts periodically. This includes all the transactions related to income, expense, and donations.
Maintenance of Statutory Registers It is mandatory for the section company to maintain statutory registers. This will provide an overview of the working structure of the company.
Convene Statutory Meetings Section 8 Companies are under obligation to convene a meeting of the board of directors and meeting of shareholders.
Preparation of Financial Statements Section 8 Company needs to prepare its financial statements. Financial statements are a record of financial transaction that occurred in the company.
Income Tax Returns Every Section 8 Company is under obligation to file income tax returns by 30th September of the following financial year.
Financial Statement Returns Filing (AOC-4) It is mandatory for a Section 8 Company to file AOC-4 along with supporting documents. This return comprises details of the financial statements of the company. This is filed within 30 days of the date of annual general meeting.
Annual Return Filing (MGT-7 -ROC Annual Returns) The Section 8 Company will file its annual return with the Ministry of Corporate Affairs through form MGT -7
Director DIN KYC Every Director has to mandatorily complete their DIN KYC with Ministry of Corporate Affairs (MCA) every financial year on or before 31 December.
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