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Mandatory Registrations for NGO |Society |Trust

As we all know, in India, there are lacs of NGOs are registered to do social welfare activities. An NGO can be registered in the form of Trust, Society & Section 8 Company with MCA i.e. Ministry of Corporate Affairs. Each year numbers of new NGO’s are registered but because of unawareness of activities and proceedings to be done after registration mostly even do not able to start even single social welfare activities. After the CSR Provision’s incorporation in Companies Act, role of active NGO’s has been significantly increased. Companies who are liable to Corporate Social Responsibility Provisions, aims to do social welfare activities in collaboration with active NGO’s. In this article, we will discuss about the actions that needs to be taken from incorporation of NGO and mandatory registration of NGO to ultimate doing of social welfare activities. to ultimate doing of social welfare activities.

Incorporation of NGO: Firstly, we need to incorporate an NGO. NGO can be registered as a Trust, Society, Section 8 Company etc. Each type of registration has various registration procedure and formalities. The time period needed for registration can be vary from Act to act, it depends on which act you want to incorporate your NGO.

Conduct of Board meeting: After incorporation, board meeting will be conducted to decide about the next steps to be taken related to fund raising activities and core area of social welfare activities.

What the essential Registrations That Must Be Taken to Smoothly Run NGO?

Section 80G and Section 12AB Registration: NGOs are registered for social welfare activities and for this they need funds. If any NGO raise funds from society then donors want to get Section 80G Deductions against donated amount. Hence, it is suggested that every NGO must register under both section at their initial stage.

NITI Aayog Registration: If NGO have the intention to receive any government grants, then it is mandatory for them to get registered with NITI Aayog Department.

CSR Registration: If funds or donations are required from corporate/ CSR Liable companies then NGO should register with Ministry of Corporate Affairs in Form CSR-1 before approaching companies for Corporate Social Responsibility Grants.

What are the Annual Compliances to Be Done by All NGOs?

Essential Audit: All NGOs are required to do mandatory audit of their BoA (books of accounts) on annual basis by a Practicing Chartered Accountant.

Filling Income Tax Return: Income Tax return filling within specified due date. In case of delay ITR filing, exemptions or relief given to NGO may be withdrawn.

Records Maintenance as required by Corporate Social Responsibility Donors Company: If your NGO is receiving Corporate Social Responsibility Grants then you need to maintain the required documents as prescribed by Donor Company. Misutilization of funds may raise problem for the NGO as well as governing body members.

Renewal of Section 80G and Section 12AB Registration: Now every NGO is needed to renew their Section 80G and 12AB registration on regular intervals as prescribed by law.