Registration of NGO

A Non-government organization in India is an authorized organization formed by natural persons. It is an organization that operates independently without any interference from the government. Government usually terms the term NGOs as non-government. It helps the government to distinguish the entities that have no government status. A non-government organization in India can immerse itself only in social, cultural, legal, and environmental activities without making a profit.

If an entity/ association of persons want to commit themselves to any specific part of society for betterment. In that case, they have to register themselves as a Non-government organization in the eyes of the law. It enables you to help a part of society without any interference from the government. You also do not have to meet the compliances.

Tax exemptions

Registering as a Non-government organization helps you obtain special status. You can enjoy tax exemptions. As subscribers and donors, people can also claim for exemption under the Income-tax law. Besides, from the tax exemptions, a Non-government organization is also exempted from all types of compliances.

Unique identity

Being a Non-government organization provides you an independent status. It can own assets and accounts in its name without paying any tax to the government.

Limited liabilities

A company that is registered as a Non-government organization in India ensures limited liabilities to all its members. The members are restricted only to the capital contribution.

An entity can register as a Non-government organization only with the following legal, possible ways:

1) The entity must be registered as a Trust under the Indian Trust Act, 1882 or,

2) An entity should be registered as a society under the Society Registration Act, 1860 or,

3) It must have Section 8 company registered under the company Act, 2013

NGOs are usually expected to function without operational profit. However, NGOs are generally offered various exemptions under various Act of the India, when it comes to taxation as an NGO basically represents an active civil society member.