NGOs and charitable organizations that are based in India have to register with the government as per the Foreign Contribution Regulation Act of 2010 (FCRA). This process, however, can take months to complete. In this article, we’ll explore everything you need to know about NGO registration in India, from what’s required of NGOs to what forms you need to fill out and submit with the government. We’ll also look at some of the different types of registrations your NGO can apply for, depending on its structure and where it’s located.
What is an NPO?
Non-profit organizations, also known as NPOs or NGOs (non-governmental organizations), are independent voluntary associations of citizens or residents that seek to provide services for members of their community. They are not allowed by law to generate profit and should operate independently from government agencies. There are several different kinds of NGOs, which can focus on a number of different issues including human rights, health and medicine, social welfare, education and religion. Some NGOs can be political in nature—groups like Greenpeace and Médecins Sans Frontières were created as advocacy groups against specific causes—but they all aim to provide some kind of beneficial service. To learn more about how you can start an NGO, read our comprehensive guide.
What is the process of registering a new NGO?
In order to be formally recognized as an NGO, you’ll need to follow a few steps. Here’s what you should know about NGO registration in India and what it will take to start your own organization. How do I register my NGO?: The first step is understanding if your organization is legally considered an association or a trust. For-profit organizations cannot become NGOs, so it’s important that you understand how these terms are defined. If you’re organizing other volunteers and there’s no money involved, then you’re most likely a trust. If there is any profit-sharing involved, however, it means that you’re registered as an association instead of a trust—and therefore ineligible for being classified as an NGO by law. What paperwork do I need to register my NGO?: Next, you’ll have to file three documents with your local government. These include a memorandum of association (MOA), articles of association (AOA) and rules and regulations. While each document has its own specific requirements, they all must include information such as:
The name of your organization
The purpose behind its creation
The address where it will operate from
How much funding it needs from donors or members To ensure that all details are correct before submitting them to authorities, ask one member from each department (finance, marketing, operations) to check over each document independently before sending them off. When can I officially call myself an NGO?
Registering your organization with the State/UT
NGO registration with MHA is a very simple process and all details can be found on the MHA website. The main thing to keep in mind is that you must have a valid address at which you can receive communications from government agencies. It should not be your own residence (in case of individual applications) or office premises (in case of organization applications). An address that matches your business activity is recommended. For example, if you are running an orphanage, you could use your home address for correspondence but then use a different location for sheltering children. If you are running an animal shelter, it would make sense to use your office premises as registered address. Other documents required are PAN card copy, proof of identity and one passport size photograph. Once MHA receives these documents they will issue an acknowledgement letter which will contain a Unique ID Number (UIN). UIN is important because it acts as reference number for all future communication with Ministry of Home Affairs about your NGO application status.
How to register your organization with the Ministry of Home Affairs (MHA)?
Organisations looking to get registered as an NGO must first create a Memorandum of Association (MOA) that defines your organisation’s goals and objectives. Thereafter, register your NGO with the Registrar of Societies (ROS). The MHA is responsible for approving all applications submitted by NGOs. NGO registration ensures that you are recognized as a legal entity within Indian laws, entitling you to various benefits like tax exemption under section 12(13) and 80G of Income Tax Act (IT)1961, and Section 25(1)(C)(i) of Companies Act 1956. Once your organization has been recognised as an Association, it is able to apply for ‘fiscal sponsorship’ from other organisations such as CSOs. In order to be eligible for NGO status, your association must not have any share capital or paid-up capital. Additionally, any association formed with a view towards profit or gain cannot be considered an NGO. For example, if you want to start a company whose main objective is commercial trade or manufacturing then it cannot be considered as an NGO. Similarly if you wish to establish associations whose main objective includes acquiring gain through employment of its members then also it will not qualify as an association eligible for registration under Society Registration Act 1860 (SRA). To learn more about how to register your organization as an NGO please read our guide on How To Register Your Organization As An Non-Profit Organisation In India.
Things you must consider while applying for MHA registration
NGO registration is a tedious process and it takes lots of time and effort, but it’s worth going through all that trouble. Here are some things you must consider while applying for MHA registration. It is important that these points are duly noted so as to avoid unnecessary difficulties at a later stage. These points should also be read through by your NGO lawyer who will guide you further with what you have to do and what documents are required. Note down each of these points: – The first thing to note down is that an organization can only apply for registration under one category or activity area. So, if you are running a social organization where your primary aim is to work towards environmental conservation then you cannot register under both categories. The reason behind this rule being followed is because every NGO has its own goals and objectives which can differ from another organization’s goal or objective. Therefore, registering under two different categories may lead to confusion about which activities fall under which category. This may result in difficulty when it comes to monitoring organizations activities since there would be no clarity about which department has jurisdiction over certain activities carried out by NGOs.- The second point on our list deals with how much time does an organization get once they have applied for registration?