Non-Profit Organisation (NPO) Registration India: Legal Types, Process & Tax Exemptions

A A Non-Profit Organization (NPO) in India is an organization established with a primary objective other than making a profit. These organizations work for charitable, social, educational, religious, or other altruistic purposes. Profits, if any, are reinvested into the organization to further its mission.

A The most common structures are:
• Trust: Governed by trust law, created by a trust deed.
• Society: Registered under the Societies Registration Act, focuses on specific objectives.
• Section 8 Company: A company registered under Section 8 of the Companies Act, 2013, for charitable or not-for-profit purposes.

A Key features include:
• Non-profit motive.
• Reinvestment of profits.
• Focus on charitable or social causes.
• Distinct legal identity (for companies and some trusts).

A Advantages include:
• Legal recognition and credibility.
• Access to funding and grants.
• Tax benefits (subject to meeting specific criteria).
• Exemption from certain regulations.

A The registration process varies depending on the chosen legal structure:
• Trust: The process involves drafting a trust deed, registering it with the sub-registrar, and obtaining a PAN card.
• Society: Registration is done with the Registrar of Societies in the respective state. It involves submitting an application with the required documents.
• Section 8 Company: Registration is done through the MCA portal (SPICe+ form). It involves obtaining a DSC and DIN, reserving a name, drafting the MoA and AoA, and filing the forms with the RoC.

A The required documents vary depending on the structure:
• Trust: Trust deed, identity proof of trustees, property documents (if applicable).
• Society: Application form, MoA and AoA, list of members, identity proof of governing body members.
• Section 8 Company: Application form (SPICe+), MoA and AoA, identity and address proof of directors, PAN card of directors, DSC, NOC for registered office address.

A Yes, a registered office is mandatory for all NPOs, irrespective of structure.

A The registration process can take several weeks or even months, depending on the chosen structure and the processing time of the registering authority.

A Yes, foreign nationals can be involved, but they must comply with relevant regulations, including those related to foreign contributions (FCRA).

A NPOs can raise funds through:
• Donations.
• Grants (government and private).
• Membership fees (for some structures).
• Income from activities related to their objectives.

A Compliance requirements vary, but generally include:
• Maintaining proper books of accounts.
• Conducting annual audits.
• Filing annual returns.
• Complying with tax regulations.
• Adhering to specific regulations based on the structure and activities (e.g., FCRA for receiving foreign donations).

A NPOs can avail tax exemptions under Sections 80G, 11, and 12A of the Income Tax Act, subject to meeting specific criteria and obtaining necessary certifications.

A The FCRA regulates the receipt and utilization of foreign contributions by NPOs in India. Registration under FCRA is mandatory for NPOs receiving foreign funds.

A Covered in the registration process details.

A Discussed in the legal structures section.

A Application shall be made to the Commissioner of Income Tax.

A Application shall be made online through the FCRA portal.

A Covered in the compliance section.

A Maintain accurate records, conduct regular audits, ensure transparency.

A The process varies based on the structure and is governed by applicable laws.

A Yes, NPOs can own property in their name.

A The name should not be similar to existing organizations and should reflect the NPO's objectives.