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NGO Registration Chandigarh Punjab Haryana

What is Non-Governmental Organisation (NGO) and what is their procedure for Registration in Chandigarh Punjab 

Non-profit organizations or NGOs have long been in existence. The term NGO was first coined in 1950 by the United Nations. These have been formed to provide help and support to the underprivileged and those who suffer. Indeed, there are various objectives served by the NGOs. However, they work towards the betterment of society NGO Registration Chandigarh Punjab 

Types of NGO registration and their Advantages of registration

If we wish to start an NGO in India, then the first thing that we would require is NGO registration. Besides, we would also require information about the different NGOs in India. In this blog, we will explore different types of NGOs and what are their advantages. NGO Registration Chandigarh Punjab

Types of Non-Governmental Organisation (NGO)

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

  • Society registration

  • Trust registration

  • Section 8 Company registration

Purpose of registering Non-Governmental Organisation (NGO)  in India NGO Registration Chandigarh Punjab

If we desire to serve society and help the people, then the best way to achieve this goal is by going for NGO registration. Various reasons for registering a society in India are:

These are self-governing bodies which aim towards the betterment of society by helping the poor and the needy. The ultimate goal of NGO is to help the underprivileged people and provide them with an opportunity for growth

There are different procedures and provisions for the registration of Non-Governmental organizations.

Trust Registration

The registration for trust can be done via the Society Registration Act, 1882. These are public charitable trusts and are usually formed when the land or property is involved. Indeed, usually, the usage of trust is for the relief of poverty, education, medical aid, etc.

Trust is registered when a property in the form of land or building is involved. Different states in India have different Trust Acts which govern the trust. In case a state doesn’t have the Trust Act, then the Indian Trust Act, 1882 is applicable.

To register a trust in India, you would be required to submit the following papers:

  • Valid Address Proof like electricity bill, water bill, etc.
  • ID proof like Aadhaar card, driving license, passport
  • Voter ID
  • Once you have all the documents, submit the form along with the trust deed and the payment for the registration process before the competent authority of your state. It takes around 8-10 working days for the online process as per The Indian Trust Act, 1882.

Advantages of Trust Registration

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

Society Registration

Another way to register NGOs is in the form of society. To form a society, the individual comes together for promoting scientific purpose, charitable purpose, and various other objectives, as mentioned in Section 30 of the Society registration Act 1860.

As per Section 20 of the Society Registration Act 1860, one can register the following societies:

  • Charitable societies
  • Societies for promoting science, culture, fine arts, etc.
  • Society for the diffusion of political education
  • Military orphan fund
  • Society for maintenance of libraries
  • To form a society, you would need at least seven members, there is no limit to the number of members, but the bare minimum number of members is 7.

Following documents are required for the registration of society:

  • Name of the society
  • Address Proof
  • Identity Proof
  • Copies of MOA and By-laws of the society
  • For registration of a society, you need to submit the papers along with payment. Once the paperwork is done, it takes 8-10 days for drafting Memorandum of Association and By-laws of the society. After this, it takes 21-30 days for the completion of the registration process.

Benefits of Society Registration

  • A registered society gets a separate legal identity. Each member of this society is responsible for their actions and not the other members.
  • Limited liability – Since society NGO is a separate legal identity, the liability of members is limited to their share only.
  • Benefits of income tax.
  • Legal protection, nobody can use your name, and in case there is an issue as such, there will be a penalty.

Also Read:- Marriage Registration In Chandigarh

Section 8 Company Registration

The third way to register an NGO is by Section 8 of the Indian Companies Act, 2013. These companies are established to protect 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. You can register the company as a public limited company (requires three directors) and a private limited company (2 directors).

You can register a non-profit organization as a Section 8 company. The objective is to promote commerce, trade, charity, education, religion, social welfare, sports, and research. In case the Company gains the profit, it is again put to use for the promotion of the work for which the company has been established.  To form an NGO under Section-8 Company, it must have at least 2 directors (for private limited Company) and three directors (public limited Company).

Following documents are required for a Section 8 company registration:=

  • The name of the Company for approval
  • Address proof of the office that can be electricity or water bill or house tax receipt
  • Identity proof of all the directors that can be:
  • Driving License
  • Copy of Passport
  • Voter ID
  • Aadhaar card
  • The Memorandum of Association and Articles of Association of the Company

Benefits of Section 8 company registration

  • There is no minimum capital requirement for establishing NGO as per section 8 company.
  • Similar to the trust, a Section 8 company also gets the special recognition of a separate legal entity.
  • One of the benefits that every NGO reaps is the benefit of tax. Apart from the stakeholders, the contributors to the NGO can also get tax exemption for the donation made to the NGO.
  • NGOs are exempted from stamp duty which is otherwise applicable for the registration process.
  • There is no title requirement. Moreover, section 8 companies are not required to use a suffix to its name, which the public limited or private limited company has to use.
  • There is better credibility. When compared with any other NGO structure, a Section 8 company is more credible. Its legal structure is more trustworthy as compared to society NGOs or trust.
  • Easy transfer of ownership is something that Section 8 Company enjoys. As per Section 8 of the Income Tax Act of 1961, people can transfer the ownership of both moveable and immobile assets without any restrictions.

Conclusion– As per the data available on NGO Darpan, there are a total of 94386 signed up VOs  NGOs till 04.07.2020. However, you can start an NGO if you are planning to help the society and bring a transformation in it. To start an NGO, there is a need for huge commitment and self-motivated individuals. There is a greater need for NGOs in the society to form the establishment which can help the people when in need and spread information for their betterment.

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