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NGO Registration: Applicable Laws in India

Mar 15th 2019 at 5:26 AM

NGO (Non-Governmental Organisation) is a non-profit/charitable organization purpose. In this article, under the Companies Act, 2013, we will explain how to register for an NGO in the form of applicable laws in India.

Applicable Laws in India to an NGO

Each law defines the formation of a different type of organization, namely, trust registration, company registration, and registration of a non-profit company. Choosing the charitable company's type of registration procedure is crucial. Our experts will help you select the right option for your vision and guide you through the process of online NGO registration.

NGO Registration: Applicable Laws in India

Trust under Indian Trusts Act, 1882

One possible way of non-governmental organization can be registered by the trust. NGOs work with eradicating poverty, providing education and also medical assistance to use.  This means that without the court's permission, they cannot change or terminate of trusts are irrevocable.

Society under Societies Registration Act 1860

Society under Societies may refer for charitable purposes to a member of organizations. They will run by a governing body or a board of directors. In contrast to trusts, all societies are cover by a single law known as the Societies Registration Act, 1860.

Section 8 Company under Companies Act, 2013

Section 8 Company has limited liability, and no profits can be made. It is generally formed to promote science, art, charity, commerce, religion, or any other useful purpose for society. Section 8 Companies have more benefit in the sense that they have more legal status and greater credibility among government bodies and donors compared to other Societies and Trusts.

Why NGO Registration in India?

  • The legal status organization ensures that they are accountable for all the funds and donations they collect.
  • An NGO registration is systematically thinking, working and developing and functioning accordingly. For example, when an aspirant donates resources to a charitable fund, they are received under the organization's name and used to benefit others. The asset can be received under the name of anyone in an unregistered company and used for their profit.
  • A company registered as an NGO remains within society's ethical, social and legal parameters.
  • The basic requirement to run a business is to have a bank account under its name. To open an account, registration as a non-profit organization is mandatory.
  • An NGO registration will also assist in tax exemption once it is registered under Income Tax Authorities.

NGO Registration Methods in India

In India, without forming an association or organization, anyone is free to do social activities. But if an individual wants to create a group involving activities, volunteers, and resources, to the certain set of rules must follow to run such companies, trusts, and societies in the right way.

Forms Required for NGO Registration

Forms Required for NGO Registration

Conclusion

There are many reasons for registering an NGO in a better way. You can receive funds from different quarters as an NGO. So aspirants check the details information of NGO Registration, if you are having any quires please comment in below sections.

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