Non Government Organisation
Non Government Organisation (NGO's) are those organisation that operate without any government aid and whose main objective is to benefit the public at large serving specific social or political purposes.
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Non Government Organisation (NGO’s) are those organisation that operate without any government aid and whose main objective is to benefit the public at large serving specific social or political purposes. The guideline of management of non profit organisation contains in its charter / Memorandum of Association / Articles of Association or any other executed legal document based upon the nature and type of Non Profit Registration.
The core objective of Non Government Organisation (NGO) is to serve the public at large with the help of self driven funds from the members of NGO or donation / contribution accepted.
There are various ways of registering a Non Government Organisation, these are to form a Trust, Society or register a Section 8 company. The most common and easy to manage and operate a Non Government Organisation is to incorporate Section 8 Companies, however it depends upon the size and nature of the organisation, the organisation may register for Trust or Society.
Benefits of registering a Section 8 company for NGO’s are:
a. Separate Legal Entity: Being Section 8 governed by Companies Act 2013, all companies registered under section 8 need to comply the provisions of Companies Act and enjoys corporate status having separate legal entity from its members.
b. Limited Liability: The liability of Section 8 company registered is maximum upto the extent of capital contributed.
c. Tax Exemptions: After registration of section 8 company, the NGO can proceed for section 80G registration for exemption of donation and section 12AB for overall trust income exemption.
d. No Corporate Name: NGO can register under section 8 without having last name as “Private Limited” or “Public Limited”, The trust can use last name as association, council, trust, foundation, forum, federation, chambers, electoral trust etc. The name of proposed NGO need to be approved by the Registrar before proceeding further for Section 8 company registration.
Non Government Organisation are prohibited to distribute any form of incentive to its members. There are numerous tax exemption benefits available to Non Government Organisation like 12A registration. This section 12A is governed by Income Tax Act and the holder of this 12A registration is exempt from paying any taxes subject to fulfillment of conditions enumerated in this section. 80G certificate can also be applied by a Non Government Organisation if such organisation also accepts grant. This section 80G is governed by Income Tax Act, this 80G certificate entitled to claim deduction by the donor making donations to Non Government Organisation.
We at ReturnFilings.Com will understand the purpose of your proposed set-up of Non Government Organisation and thereafter will provide you analysis of registering in various categories as compared to other form of business i.e. trust or society or Section 8 companies covering almost all scenarios to carry out your activities effectively and efficiently. Based upon the Registration Certificate we need obtain a PAN (Permanent Account Number) in the name of registered entity to carry out the business. We at ReturnFilings.Com will apply for PAN on behalf of your registered entity and thereafter provide registration under other regulatory requirement based upon the need of such registration i.e. GST, TAN, Import Export Code etc.
Apart from above, even after obtaining registration under various laws, we at ReturnFilings.Com also fulfill various compliance on your behalf in order to ensure proper and smooth functioning of business and to avoid unnecessary interest or penalty for non-compliance. We at ReturnFilings.Com are determinate to provide end to end solution, our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.