3 minutes, 58 seconds
-148 Views 0 Comments 0 Likes 0 Reviews
Starting and running a non-profit organization in India requires multiple registrations to ensure legal compliance, tax benefits, and eligibility for funding. Here's a concise guide on key registrations every NGO should consider:
1. Section 8 Company Registration
A Section 8 Company Registration is a non-profit organization formed under the Companies Act, 2013, for promoting commerce, art, science, religion, education, or charitable purposes. It doesn’t distribute profits to its members and is a popular legal structure for NGOs due to its credibility and governance framework. Registration is done through the Ministry of Corporate Affairs (MCA) and requires a minimum of two directors, a registered office, and approval of the company’s name and objectives.
2. FCRA Registration
The Foreign Contribution Regulation Act (FCRA) registration is essential for NGOs that wish to receive foreign donations. It ensures transparency and accountability in the use of foreign funds. An organization can apply for either Prior Permission or Permanent Registration (valid for five years) through the Ministry of Home Affairs. To be eligible, the NGO must be in existence for at least three years and must have spent a minimum of ₹15 lakh in its core activities using domestic funds.
3. CSR-1 Registration
Form CSR-1 Registration is a mandatory registration for NGOs intending to receive funds from companies under the Corporate Social Responsibility (CSR) provisions of the Companies Act, 2013. Only registered entities like Section 8 Companies, Trusts, or Societies with 12A and 80G approval can file CSR-1 with the Registrar of Companies. Upon approval, NGOs are issued a unique CSR Registration Number, making them eligible to receive CSR project funding.
4. NITI Aayog Registration (NGO Darpan Portal)
Registration on the NITI Aayog Registration NGO Darpan Portal is a voluntary but increasingly essential step for NGOs seeking government grants or partnerships. It helps bring transparency to the NGO sector and is often a prerequisite for applying for government schemes. The portal generates a unique NGO ID upon successful registration, linking the NGO to various ministries and departments.
5. 12A Registration
12A registration exempts an NGO’s income from income tax. Granted by the Income Tax Department, it allows organizations to use their income exclusively for charitable purposes. Without this registration, the income of the NGO is subject to taxation. NGOs must apply online using Form 10A and submit required documents including their founding deed and financial statements.
6. 80G Registration
80G registration allows donors to claim tax deductions on donations made to the NGO. This makes it easier for organizations to raise funds as contributors get tax benefits. Like 12A, it’s issued by the Income Tax Department. The application is made through Form 10A or 10AB, depending on the type of registration needed.
Conclusion
These registrations form the legal and financial backbone of any NGO operating in India. Completing them not only ensures compliance but also builds donor trust and opens doors to greater funding opportunities—both domestic and international.
fcra registration Section 8 Company Registration NITI Aayog Registration 12A and 80G Registration CSR-1 Registration