Non-Governmental Organizations (NGOs) play a vital role in addressing social, cultural, educational, and environmental issues in India. To operate effectively and gain credibility, NGOs must register under the appropriate legal structure and comply with tax regulations. This guide provides an overview of NGO registration in India, the types of structures available, and key tax considerations.
An NGO is a non-profit organization that works for the welfare of society without the primary goal of earning profits. NGOs can be registered under various legal structures, depending on their objectives and activities.
NGOs in India can be registered under the following structures:
• Governed by the Indian Trusts Act, 1882.
• Suitable for charitable, religious, or educational purposes.
• Requires a trust deed outlining the objectives, rules, and management structure.
• Governed by the Societies Registration Act, 1860.
• Ideal for cultural, educational, or social welfare activities.
• Requires a memorandum of association and bylaws.
• Governed by the Companies Act, 2013.
• Suitable for promoting commerce, art, science, religion, charity, or environmental protection.
• Requires a license from the Central Government.
Provides a formal structure and legal identity to the NGO.
Eligible for tax benefits under Sections 12A, 80G, and 10(23C) of the Income Tax Act.
Enhances trust among donors, beneficiaries, and stakeholders.
Enables the NGO to receive grants and donations from government bodies, corporates, and international organizations.
Continues to exist even if the founders or members change.
The documents vary depending on the type of NGO structure:
1. Trust deed (stamped and notarized).
2. Identity and address proof of trustees.
3. Proof of registered office address.
1. Memorandum of Association (MOA) and bylaws.
2. Identity and address proof of governing body members.
3. Proof of registered office address.
1. Memorandum and Articles of Association (MOA and AOA).
2. Identity and address proof of directors.
3. Proof of registered office address.
4. License under Section 8 of the Companies Act, 2013.
• Draft a trust deed outlining the objectives, rules, and management structure.
• Submit the deed to the local registrar’s office along with the required documents.
• Pay the applicable stamp duty and registration fees.
• Prepare the memorandum of association and bylaws.
• Submit the application to the Registrar of Societies along with the required documents.
• Pay the registration fees.
• Apply for a license under Section 8 of the Companies Act, 2013.
• Submit the application for company incorporation (SPICe+ form) to the Registrar of Companies (ROC).
• Obtain the Certificate of Incorporation.
NGOs in India can avail of several tax exemptions and benefits:
• Exempts income from donations and grants.
• Required for claiming tax exemptions under Sections 11 and 12.
• Provides tax deductions to donors on their contributions.
• Enhances the NGO’s ability to attract donations.
• Available for NGOs engaged in charitable activities like education, medical relief, or poverty alleviation.
• NGOs providing charitable services are exempt from GST.
After registration, NGOs must comply with the following:
• Trusts: File income tax returns (ITR-7) and audit reports (if applicable).
• Societies: File annual returns with the Registrar of Societies.
• Section 8 Companies: File annual returns (Form AOC-4 and MGT-7) with the ROC.
• Maintain proper records of income, expenses, and donations.
• Mandatory if income exceeds ₹5 lakh in a financial year.
• Renew Section 12A and 80G certifications as required.
• Cancellation of Registration: For prolonged non-compliance or misuse of funds.
• Loss of Tax Benefits: Failure to file returns or maintain records can lead to loss of exemptions.
• Legal Action: Non-compliance with statutory requirements can result in fines or legal action.