NGO REGISTRATION.docx

1. NGO REGISTRATION NGO Registration in Jaipur refers to an entity that remains once Government and Business are removed from the framework. These entities work towards the general betterment of society and function as small units which fill the gaps at places where Government can’t reach them effectively and business cannot be done with meaningful returns. The term Non-Government Organization or NGO is used as an umbrella to cover all legal entities that seek charitable and philanthropic funds for the betterment of society without the motive to derive profit from it. However, there is no such legal entity as an NGO. It can either be a Trust, a Society, or a Section 25 Company. We must understand the legal framework of an NGO and the important tax benefits available to an NGO. What are the benefits of NGO Registration in Jaipur? Below-mentioned are the benefits of NGO Registration:- ● Avails Tax Exemption Registering the company as an NGO under the Companies Act, 2013 helps in availing several taxation benefits i.e. NGOs are exempt from several taxes which as result helps the company save money from taxes and utilize the saved money in further projects. ● Right To Acquire Assets When your organization is officially registered, it then becomes permitted to acquire land, owns fixed assets, and/or acquire liabilities under its common seal. It is against the law for an unregistered organization to buy, hold/or sell land anywhere. ● No Minimum Share Capital Requirement No minimum share capital requirement is needed to function independently. NGOs can be directly funded by the charity made to them. This means that NGOs do not need a higher share of capital to function independently. ● Protection From Personal Liability You can buy, acquire & register assets and stakes in the name of your NGO.

2. This is a very well-groomed way of protecting by hand from unlimited liability for an untoward occurrence such as foreclosure, bankruptcy, judgment debt, divorce, etc. ● Transfer Of Ownership Under the Income Tax Act 1961 NGOs registered under the Companies Act, 2013 are not restricted to transferring their ownership or claims of the interests earned. ● Corporate Entity As a corporate body, your organization’s transactions and engagements with the community will improve. The NGO can also sue to enforce its legal rights or be sued via its registered trustees. ● Exemption On Stamp Duty Under Income Tax Act, Section 8 companies as NGOs are exempted from stamp duty, which results in more tax-saving methods for the company. All the taxes saved through stamp duty are then invested in the promotion of the objectives taken up by the company. Also, it helps in protecting funds for the company, which as a result helps in smoother functioning of the company and increasing the productivity of the company. ● Structured Financial Plan Having an NGO can bear a tax-free mechanism for actions you are carrying on under the registered NGO. NGOs are considered not-for-profit and tax exempted. You can develop a structured financial plan that allows the organization to do business devoid of tax liabilities. ● Stability Of Entity The registration of your organization can suggest that there is effective and

3. responsible leadership in place. The public will perceive the same as being more stable than an unregistered organization. Political parties, government, donor agencies, financial institutions, charity organizations, and other NGOs will want to partner with a registered body to further common objectives. ● Perpetual Succession This means an NGO got an unlimited lifetime and will carry on existing even if the founder/trustees die or leave the NGO. The organization’s continuation will only cease if it is formally wound up by the Order of the Court of India. Along with other benefits, this may allow perpetual succession. ● Admission To Credit Registering an NGO can afford access to credit from lenders and financial institutions. You can use a loan facility to promote the organization’s activities, finance a mortgage, acquire land, or fixed assets. Banks will want to see proof of registration with a condition precedent to giving a loan. ● Name Preservation Once your organization is registered, no one can use the same name or name similar to it throughout India. This has the benefit of protecting your corporate image and name from unauthorized use. ● Opening Bank Account Opening a corporate account with a bank for the NGO may signal the fact that is transparent. Some private persons, government, donor agencies, and other NGOs will not be comfortable writing you a cheque for your organization in your name. A bank account for the NGO would signal its corporate existence and its readiness to receive donations. You need to provide proof that your organization is registered to be able to open an account with a bank.

4. What is the Classification of NGOs in Jaipur NGOs are classified based on the following levels, which are as follows:- ● By the level of Orientation. ● By the level of Operation. By The Level Of Orientation ● Charitable Orientation ● Service Orientation ● Participatory Orientation ● Empowering Orientation. By The Level Of Operation ● Community-Based Organization ● City Wide Organization ● National NGOs ● International NGOs. Types of NGO Registration There are three ways through which you can register NGOs in India: ● ● ● Society registration Trust registration Section 8 Company registration Purpose of registering NGOs in Jaipur If you desire to serve society and help the people, then the best way to achieve this goal is by going for NGO registration in Jaipur. Various reasons for registering a society in India are:

5. ● These are self-governing bodies that aim toward the betterment of society by helping the poor and the needy The ultimate goal of NGO is to help the underprivileged people and provide them with an opportunity for growth ● ● Once you have defined the agenda of an NGO, you can go ahead with NGO registration; there are several benefits that NGOs enjoy and will be discussed ahead. How to Register an NGO in Jaipur? Registering an NGO in India is quick, easy, and can be done online with Vakilsearch in 3 simple steps: 1. Right Entity Selection – We address all your queries about entity selection and guide you to choose the most appropriate one. 2. Online Paperwork – We help you get the entire process of filing and registration completed. 3. Registration – We will register the NGO and handle all the formalities (Trust Act, Society Registrations Act, or the Companies Act, depending on the entity chosen). Wrapping it up: Forming an NGO in India is a simplified process only if you have complete documents and other papers ready as per the protocol. However, the information mentioned above gives the details of different types of NGO registration in India and what are the different benefits of registration for the same. Therefore, the paperwork requirement may vary based on the different types of NGOs that you want to register.