Registration of NGO
manish kumar
(Querist) 14 August 2017
This query is : Resolved
sir i want to know process of online registration of NGO in delhi.?
is it compulsry to get registered a NGO Under Charity Commission of India???
what is better between NGO and trust, society..???
Ms.Usha Kapoor
(Expert) 14 August 2017
As per section 12(1) of the National Trust Act any voluntary organisation or the association of parents of persons with disabilities or the "Association of Persons with disabilities working in the field of autism, cerebral palsy, mental retardation and multiple disabilities" already registered under the Societies Registration Act, 1860(21 of 1860), or section 25 of the Companies Act, 1956(1 of 1956), or as a Public Charitable Trust and under Persons With Disability Act, 1995 in the concerned state can apply for registration in National Trust by filling online form alongwith form `E’ (generated by the system) duly signed and stamped by the President/General Secretary of the organisation.
The registration of such organisation shall be necessary with the Trust for availing benefits under the schemes of the Trust.
How to apply online for Registration
Before one starts filling up the online form, please go through it carefully.
As per Section 12(1) any association of persons with disabilities, or any association of parents of persons with disability or a voluntary organisation whose main object is promotion of welfare of persons with disability may make an application for registration to the Board of the National Trust.
Check your eligibility, particularly under the National Trust Act and Persons with Disabilities Act. Before applying, get registered under PWD Act if not already registered. The National Trust registration will be generally co-terminus with the registration under PwD Act-1995.
Example:- If an Organisation gets registered under National Trust Act on 1/1/2015 and its registration under PwD Act, 1995, is valid till 31/12/2017, the organisation will be considered registered under National Trust Act till 31/12/2017 only. However the organisation will be given a further period of 6 months to one year (grace period) for submission of valid certificate of registration under Persons with Disabilities Act, 1995. If the same is submitted within that period, the registration will remain valid for the balance period of registration with the National Trust. Otherwise the Registration under National Trust Act will stand cancelled. In such case the Organisation has to apply again afresh for registration under National Trust Act with full information and documents alongwith fee after getting duly registered under PwD Act, 1995.
Keep ready the following documents
Resolution & Authorisation of the Organisation to file application for registration.
Form E for registration under Rule 27(3). All pages duly signed and stamped by authorised signatory.
Audited Annual Accounts of the last two years
Annual Report of the last year
Memorandum of Association (MOA)
Certificate of Registration under Persons with Disabilities Act-1995.
Certificate of Registration/ Incorporation under any relevant Act like Societies Registration Act.
Registration Fees is Rs. 2000/- for urban & Rs. 1000/- for rural area. The fee is to be deposited electronically.
Enclose all the documents with the on-line application to facilitate expeditious processing.
Hard copy of all requisite documents, including duly signed and stamped Form E generated through online process, must be submitted in the National Trust office within seven days of online submission.
Please note that in case of any discrepancy found at any later stage between the on-line application and hard copies submitted, the National Trust will be at liberty to cancel/ modify / withdraw its approval. In such a case, the Registration Fees will not be refunded.
The NGOs who are registered with The NAtional Trust and whenever their PWD Act registration expires, shall be given a grace period of 6 months to one year, for getting new registration under PWD Act.
Application for renewal of registration should be submitted to National Trust 6 months prior to expiry of the date of registration under National Trust Act.
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Statutory compliance for ngo in india
Jahir Mansuri
Statutory Compliance for NGO after its registration
April 10, 2014/6 Comments/in Compliance - Tax /by Jahir Mansuri
We have already discussed in this post about how to form NGO. After forming NGO in India, there are statutory compliance for NGO, which requires utmost care. Let us discuss all in detail, one by one.
PAN
After registration of NGO with State Charity Commissioner or Collector or Society Registrar, first thing is to apply for PAN of NGO. It is compulsory to apply for PAN after registration of NGO. You can apply PAN online through this website.
Registration u/s. 12A of Income Tax Act
Commonly known as 12A certificate, this registration is NOT mandatory. Purpose of getting this registration u/s. 12A is to get exemption from Income Tax on the Income of the trust, if all the conditions laid down in this section are fulfilled. You can check detail procedure here how to apply for 12A certificate.
Registration u/s. 80G of Income Tax Act
Again, this is NOT a mandatory one. However to give benefit of 50% or 100% exemption on donation to our donors, it is per-requisition to get the registration u/s. 80G of Income Tax Act. It is indirectly benefited to NGOs to raise funds. Go through this post for detail procedure to get 80G Certificate.
FCRA Registration
If there are possibilities to receive Foreign Funds for projects of NGO, a registration with FCRA department, Ministry of Home Affairs is compulsory. Without FCRA registration, NGO cannot receive any foreign donation or grants. Check more FAQs on FCRA here.
TAN
Society is bdetter off than the other two,I.e, Trust and NGO for the following reasons:
Society:
Alternatively, one can set up a registered society under the Societies Registration Act of 1860 or various state laws equivalent to Federal Societies Registration Act. Societies are generally established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs, etc.
Requirements:
A minimum of seven members are required to form a society. They have to file a memorandum of association on non-judicial stamp paper, setting out the objectives of the society before the registrar of societies in the state in which the society is set up. The legal requirements are much simpler than in the case of a trust or Section 25 companies.
Benefits of Society:
Unlike trusts, a society has a more democratic set up with membership and an elected body to manage the society. The original members of a society can continue to remain in control as long as they are elected to the managing committee, but at the same time can opt out of the society if they wish, which trustees cannot. The society can exist as long as the members wish, but there is always a possibility of complete renewal of members and objects can be modified easily. It is easier to wind up a society than it is to wind up a trust.
Limitations of Society:
The major disadvantage is that due to democratic procedures, the society can be taken over by elements opposed to the founding members. Therefore possibility of hijack of original idea is very much possible.
Section 25 Company:
According to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established ‘for promoting commerce, art, science, religion, charity or any other useful object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
For an individual or group of individuals who wish to create a non-profit concern for charitable purposes as an adjunct to main business activities it would be best to create a Section 25 company under the Indian Companies Act of 1956. Only seven members are required to set up a non-profit company. The main instrument is the memorandum and articles of association filed on non-stamp paper before the registrar of companies.
Benefits of Sec. 25:
Its advantages are that a wide range of activities can be taken up. Though complex, its objects can be modified if need arises, and providing services and trading on a no-profit basis is possible. The management is with the board of directors and prevention of takeovers is easier than in a society.
Limitations of Section 25:
However, under company law, the formation and regulation procedures are more complex than in either a trust or society. There are various compliances which need to be fulfilled periodically. Cost of formation and Taxes would be higher in Section 25 Company.
Tabular Comparison of Trust, Society and Section 25 Company:
Trust Society Section 25 Company
Statute/Legislation Relevant State Trust Act or Bombay Public Trusts Act, 1950 Societies Registration Act, 1860 Indian Companies Act, 1956
Jurisdiction Deputy Registrar/Charity commissioner Registrar of Societies (Charity Commissioner in Maharashtra) Registrar of companies
Registration As Trust As Society In Maharashtra, both as a society and as a trust As a company u/s 25 of the Indian Companies Act
Registration Documents Trust deed Memorandum of association and rules and regulations Memorandum and articles of association; and regulations
Stamp Duty Trust deed to be executed on non-judicial stamp paper, vary from state to state No stamp paper required for memorandum of association and rules and regulations No stamp paper required for memorandum and articles of association
Members Required Minimum– two trustees. No upper limit Minimum – seven managing committee members. No upper limit Minimum three trustees. No upper limit
Board of Management Trustees / Board of Trustees
Governing body or council/managing or executive committee
Board of directors/ Managing committee
Mode of Succession on Board of Management
Appointment or Election
Appointment or Election by members of the general body Election by members of the general body
In sum the type of legal incorporation to be chosen would depend mainly upon requirements and preferences. All three types of organisations can hope to get tax benefits provided they meet
Rahul Vats
http://commerceduniya.com
I am the Co-founder & Managing Editor of Commerce Duniya.
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1 COMMENT
Govind Sharma December 29, 2016 at 12:23 pm
The post is misleading. The things here told about trust is private trust under Indian Trust Act which is a substitute of a will and not a charitable trust
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During the working of NGO at any point of time, if NGO become liable to deduct tax from source, it has to first apply for TAN. Like PAN , TAN application can be made online thought this website.
Service Tax Registration
Only when NGO is providing services like consultancy work or research activity etc… and if gross revenue from such activity cross the basic exemption limit of service tax, then NGO has to first apply for Service Tax Registration number. Again it is an online procedure and you can apply for registration here.
Professional Tax
Professional Tax is a liability of NGO to deduct from the salary of employee and deposited to Government. Professional Tax is State Government look out and thus different states of India having different rules for Professional Tax.
Retirement Benefit
Retirement benefits like Provident Fund, Gratuity, ESIC etc.. is applicable to NGO when it grow up and having employees more than prescribed limit in this acts.
Summary
Depending upon the work and size of NGO, you can either apply for all the above statutory compliance immediately after registration of NGO or you can apply as and when requirement arises.
Tags: 12A, 80G, Governance, PAN, Professional Tax, Quick Registration, Registration, statutory compliance, TAN, TDS
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6 replies
admin
admin says:
August 12, 2014 at 2:43 pm
asdfas
Reply
LAKSHMI NARAYANA NAGISETTY
LAKSHMI NARAYANA NAGISETTY says:
August 6, 2015 at 12:43 pm
It is informative and certainly useful for the NGOs. In addition to the above, pl add the following as:
1. Registration with Planning Commission, GOI (with change one) NGO Partnership System.
2. Tax Exemption under 35 AC.
3. Registration under the National CSR HUB.
Looking forward for better connectivity.
All the best.
Reply
N L Narayana
N L Narayana says:
February 20, 2017 at 6:44 pm
The employees at NGOs get honorarium around 5,000 to 10000 will come under the provision of professional tax. This payments are not regular. Clarification helps NGOs to do the needful.
Reply
Jahir Mansuri
Jahir Mansuri says:
February 21, 2017 at 1:17 pm
PT is a local tax and governed by state departments. So if you are in a state where PT is there and it is as per slab. yes.
For taxes, honorarium is not clearly define. Either it can be treated as SALARY so PT is to be deducted or it can be treated as CONSULTANCY so TDS is to be deducted. No other option.
Reply
N L Narayana
N L Narayana says:
March 21, 2017 at 6:16 pm
It is heard that Tax Exemption under 35AC is valid upto 31st March 2017. Will it be closed or someother section will be continued to continue the tax exemption. Please clarify.
Reply
Jahir Mansuri
Jahir Mansuri says:
March 22, 2017 at 7:53 am
Yes as per Finance Act, 35AC exemption is going to abolished from 01.04.2017. However, off the record we are getting news, that there may be some categories or activities will continue giving 100% exemption to their donor. Mostly, some circular or notification will be released by government.
Reply
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Ms.Usha Kapoor
(Expert) 14 August 2017
If you've appreciated my above answer please click the like button.
R.K Nanda 
(Expert) 14 August 2017
nothing more to add.
Kumar Doab
(Expert) 14 August 2017
You can benefit from the description posted by Ms. Usha Kapoor.
Kumar Doab
(Expert) 14 August 2017
Subsequently; Check in person at O/o Authority.
Rajendra K Goyal
(Expert) 14 August 2017
Please visit following link:
http://thenationaltrust.gov.in/content/innerpage/ngo-registration.php
Dr J C Vashista
(Expert) 14 August 2017
It would be appropriate to entertain and advise the needy litigants for their dispute, which is missing in instant procedural topic.
No comments on the article.
Kumar Doab
(Expert) 14 August 2017
In case you are unable to resolve on your own.................avail services of a local senior counsel of unshakable repute and integrity specializing in such/civil matters...
Ms.Usha Kapoor
(Expert) 14 August 2017
i WAS MISLED BY SOME ONLINE INFORMATION AND HAD TO ERR.Despite IN TRYING CIRCUMSTANCES I'm DOING VERY Best IN MAJORITY O F MY ANSWERS.Occasionally 1 or two mistakes happen.Here NO BODY IS OUT OF board. Every BODY COMMITS MISTAKES. .Correct WEBSITE ADDRESS FOR AN ONLINE REGISTRATION of NGO IS:
http://ngo-registration.in/online.php
Kumar Doab
(Expert) 14 August 2017
Dear Ms. Usha Kapoor,
To err is human....
Barring IT in all forms the die hard chronic daily nuisance abuse sarcasm litterer the experts are considerate to each other.....
