Documents Required for NGO Registration

Here, listed down are mandatory for registration purpose.

For Trust Registration –

• Electricity or Water bill mentioning the address needs to be registered
• Identity proof of two members; voter Id, Driving License, Passport, Aadhaar card.

For Society Registration-

• The name of the society
• Office Address Proof
• Identity Proof of 9 members; voter Id, Driving License, Passport, Aadhaar card.
• Copy of Bylaws of Society and Memorandum of Association

For Section 8 Company-

• Company name approval
• Office address proof
• Identity Proof for the all the director- voter Id, Driving License, Passport, Aadhaar card.
• Memorandum of Association and Article of Association of Company.

 

Applicability of 80G and 12A Registrations

80G and 12A registrations apply only to NGOs and Charitable Organizations if they fulfill the following conditions;

• They must not have any income generated from a business
• They should either be a charitable trust or a registered society
• Also, such organizations should not be using their assets or income for any other purpose other than making charity
• Furthermore, they must maintain a regular book of accounts in favor of their receipts and expenses.
• The trustees or any other body governing the organization should not be involved in deriving any undue benefits from these funds
• They should not be working for the benefit of any particular caste or religion
• Also, in the case of business-related income, the organization should maintain a separate book of accounts. However, the donations received by the NGO must not be used for such businesses.

An NGO must apply for 12A and 80G Registration immediately after its incorporation.

What is an 80G Certificate?

An 80G Certificate is issued by the Income Tax Department to a non-governmental organization (NGO) such as a charitable trust, or a Section 8 Company. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations. Furthermore, the donor gets a tax exemption of 50% when they make donations to such organization, as they become eligible to deduct such amount from their Gross Total Income. Additionally, in order to avail the exemption, the donor needs to attach the stamped receipt of the donation made. Such a receipt must contain the donor’s name, date of donation, and PAN of the organization.

What is the procedure for 80G Registration

80G Registration procedure consists of the following steps:

• Apply for an 80G certificate to the Commissioner of Income Tax (Exemption) within the jurisdictional area of the entity along with the required documents.
• An on-premise inspection is done by the Income Tax department after the form, and the required documents for 80G registration are submitted
• However, the Income Tax Officials might ask for additional documents or evidence if they seem fit, or if they feel anything to be missing
• Upon satisfactory verification of documents and the office of the NGO, the 80G certificateis granted to the institution by the Commissioner.

Note: The Validity of an 80G Certificate is for a lifetime of the institution.

What are the Documents Required for the 80G Registration?

The following documents are required for 80G registration are as follows:

• MoA and Registration certificate in case of Section 8 companies and Societies and a Trust Deed in case of a Trust
• No objection certificate from the owner of the property where the registered office of the Institution is situated
• Form 10G
• A copy of the PAN of the NGO
• Copy of Utility Bills such as Electricity bill, water bill or House Tax Receipt
• A list of the donors along with their address and PAN
• The documents related to Income Tax Returns and the Book of Accounts for the past three years
• The list of the welfare activities being carried out & the progress report for the last three years
• A detailed list of the Board of Trustees
• Original RC, MoA, or Trust Deed.

About 12A Registration

Now that we have covered the 80G Registration process, we will know about Section 12A and how to get registered under Section 12A of the Income Tax Act, 1961.

Section 12 A of the Income Tax Act, 1961, is a onetime tax exemption provided to trusts, NGOs and Section 8 Companies. Such organizations holding a registration under section 12A are exempted from paying taxes on their surplus income.

Through 12A registration, Trusts, NGOs and Section 8 companies are exempted from paying income tax on their surplus income. NGOs are organizations involved in charitable and non-profit activities. However, they do earn income and they are required to pay tax as per normal rates if not registered under section 12A, Income Tax Act.

What is the Procedure for 12A Registration?

You are required to follow these steps for 12A registration;

• You need to file an application in the Form 10A, as per Rule 17A of the Income Tax Act, 1961
• The application needs to be filled as per the guidelines of the Jurisdictional Commissioner of Income Tax (Exemptions)
• The Commissioner verifies the genuineness of the activities of the organization, Once he receives the Form and the documents. Also, He can call for additional documents or information if he considers necessary
• On the satisfactory report, the Commissioner passes an order in writing for the grant of 12A Registration. If the Commissioner is not satisfied he will reject the application, after which the applicant is provided a fair chance to be heard.

12A Registration can be canceled at any point of time subject to the proof that the activities of the organization

• Is against the object of the institution
• Are not genuine
• Is benefitting a specific religion or caste
• The funds are being invested in prohibited means
• The income of the institution is used for the benefit of specific individual or group of persons

Note: The12A Registration is valid for a lifetime of such institution

What are the Documents Required for 12A Registration?

The following documents are required for 12A registration;

• Documental evidence of the creation of the Trust or NGO {Trust Deed of a Trust; Registration Certificate and Memorandum of Association {MOA} of a society}
• Section 8 companies need to submit a certificate of incorporation and copies of MoA and AoA of the company
• Form 10A.
• Three-year bank account statement of the Trust.
• PAN of the organization.

What is Society Registration

Society is an association of persons who came together to deliberate and act jointly on mutual consent to attain a common objective. Societies are registered to attain to promote social welfare such as education, arts, culture, charity, religion, sports, music, etc.

Society Registration Act 1860 governs the procedure of registration & operation of a society registered in India. Members of the society shall maintain the mutual understanding and follow the guidelines of this act to maintain the harmony to develop and enhance social welfare.

What are Objectives of Society Registration in India

Section 20 of Society Act 1860 defines the following purposes for getting society registered in India:

• Promoting fine arts
• Promoting political education
• Providing charitable assistance
• Promotion of science and literature
• Creating funds for military orphan
• Maintaining or developing the public museum
• Maintain or developing libraries
• Promoting or maintaining education or useful knowledge.

What is The Registration Procedure for Online Society Registration

Societies can be registered or unregistered, similar to a partnership firm. However, registered society can enjoy several advantages over unregistered society. There must be a minimum of 7 members or more for creating society. Following members are allowed to register for Memorandum of society:

• Indian resident individual
• Foreign companies
• Indian companies
• NRIs
• Other registered society

Apply to concerned state authority for society registration online as the state authorities deal with society registration. Following are the five steps for Society registration:

a) The name of the society shall be unique and not resembling the registered society as per the guidelines of the Indian Society Act. The name shall be mutually agreed and accepted by all the members. No name shall be prohibited under statutory provisions of any act nor shall it violate a provision of any law.

b) After deciding the name, the society shall have a memorandum of association that frames the rules and regulations to be adhered to by the society and its members. The memorandum shall be signed and attested by the members along with witness by oath commissioner, notary and first-class magistrate with their stamp and complete address.

c) Complete the following documents and attach them with the application for society registration:

• PAN of every member
• Residence proof of members such as Aadhar card/electricity bill/bank statement/gas bill etc
• Covering letter that mentions the objective and purpose for the society registration and it shall be signed by all the members
• Complete list of all the members like name, address, contact details, etc.
• Certified copy and duplicate copy of the memorandum of association
• Copy of rules & regulations of society signed all the members
• Registered office address proof such as electricity bill, NOC by the landlord, etc
• Affidavit declaring the relationship amongst subscribers vowed by secretary or president of the society
• Minutes of the previous meeting of society confirming the registration of the society.
• Declaration by the president of the society stating his willingness and competency to hold the post of president

d) Apply along with the above-stated documents (Two copies of each document) to the registrar of the society of the concerned state with authority for society registration. Authority shall sign the first copy as acknowledgement and shall return the second copy to the applicant on approval. After receipt of the application, the registrar shall scrutinize the application for its correctness and on approval shall allot Certificate of Registration by allotting registration number on it.

Effects of Registering the Society

Following are the effects and advantages a registered society gets:

• A registered society gets legal status.
• Registered society can legally open its current account
• Can get registration and approvals under the Income Tax Act with an ease
• Registered society gets the legal status that is essential for lawful vesting of properties of society
• Registered society gets legal recognition before all forums and authorities
• Members of the registered society are legally bound to the same extent as if they had signed the memorandum
• A registered society enjoys a separate legal entity.
• Registered society is a legal person that can acquire and hold the property in its name
• A registered society can sue or can be sued.

Books and Accounts of Registered Society

The registered society holds the property and funds in its name that is provided to them by members or any other person by donation or other similar nature. Providers of funds and properties expect the society to attain its objective for which the society is registered. Thus, society must maintain the books of account and a proper statement which shall be audited regularly. Audited statements shall be presented before the members at the general meeting which shall be filed with Registrar for verification. Once in a year, accounts shall be audited by a qualified auditor and must prepare a balance sheet.

 

Wh

Registration of trust for a non-profit is well known and Trust can be formed by 2 or more people for a social cause. In this article, we will discuss the checklist and documents required for trust registration.

What is the Trust Registration?

Trust is registered and governed by the Indian Trust Act. In simple word, it is a financial vehicle which transfers property from its owner to a trust for the lawful purpose. Normally we hear the word trust for religion purpose; however, there is no such restriction. There are even sports academies registered as trusts.

In India, some societies are registered as a public trust. Often, you’ll even hear of the wealthy creating private trusts; this is done because of the tax-efficient nature of the trust (dividend distribution tax or minimum alternate tax do not apply). It is the easiest way to transfer than making a will. However, it does much involve more effort to register a trust than to write a will.

Documents required for Trust Registration

• The details of trustees like Name, Occupation, Address, Age, Father’s Name, Designation, Mobile Number, Email Address and Two Photograph are required.
• Address Proof of Trustee & Settler required: – Voter I.D / Driving license / Passport.
• Electricity Bill or House Tax Receipt or Water Bill Receipt or Ownership Proof of Property required.
• In the case of Rented, Rent Deed duly notarised with rent receipt and NOC form Land Lord on Rs 10/- Stamp Paper. Name of Landlord, Father’s name, Residence Address.
• Physical Presence of Settler/all required at the time of Registration along with Original ID.
• Physical Presence of Two witnesses with original ID Proof at the time of Registration.

Steps to Register the Trust

Preparation of the Trust Deed

The first step is to draft the Trust deed. Trust deed is nonmandatory but is desired as it is enforceable by law. The following details should be mentioned in Deed:

• Name and address of the Settler (Settler is the person who is setting up the trust)
• Name(s) and address (es) of the other trustees
• Name of the trust (minimum 3 preference shall give)
• Minimum and maximum number of trustees
• Address of the registered office of the trust
• Objectives of the trust
• Rules and Regulations of trust.

Parties to the trust

Three parties are required to form the Trust.

Applicant /Author of the trust

The author is the person who declares confidence in the Trust. The Name & Address of the author shall be mentioned in Deed.

Details of trustees / Members

The trustee should not be a minor & be of sound mind. Mention full Name, Address, Occupation & Age, and designations of the Trustees / Members.

The beneficiary of the Trust

A person who is going to be benefitted by the formation of trust. Usually, Author himself is the Beneficiary or it is public at large.

Objects of the Trust

Trust can be formed for charitable purposes only. The detailed objective of Trust shall be incorporated indeed.

Subject matter

The subject matter of the trust is the property in respect of which the trust has been created. The subject matter shall be defined and property of trust shall be capable of disposition to create a valid trust.

Registration of the trust by Trust Deed

After preparation of Trust now another step is to register the Trust deed. NGO Registration is not compulsory but is needed to get the trust registered under the Income Tax Act for availing the exemptions and more over a deed is a prima facie evidence of the existence of a trust. The trust deed shall be submitted to the local registrar along with the one photocopy and settler shall sign all the pages.

Name of the Trust

Give at least 3 options in the order of preference of name of a Trust.

Address for correspondence & Evidence

Recent electricity Bill/ Telephone Bill/ Property Card of the Trust location.

Tenure of Trustees

Tenure shall fix a minimum 1 year to a maximum of 5 years.

at is FCRA Registration?

FCRA stands for Foreign Contribution Regulation Act that governs and regulated foreign contributions occurring within India. FCRA Registration Certificate issued by the government authority is a mandatory obligation to acquire or receive any foreign contribution or foreign grants by any registered trust, society, institution, association, and NGOs.

The primary objective of FCRA registration is to legalize the receipt of any foreign contribution by domestic entities and for ensuring the proper utilization of such funds for the specified objective. In this article, complete details and information relating to FCRA registration and topics related thereto have been discussed in detail.

FCRA Registration Process

Following is the step by step online process of applying for FCRA license:

• Apply online through filling online form FC-3 available on the official website of FCRA https://fcraonline.nic.in
• Click option “FCRA Online Forms” for registration under FCRA.
• The applicant will be redirected to the next page for several options such as application for seeking the permission of the central government, foreign receipt intimation, application for FCRA registration, etc.
• Select “Apply Online” option under Application for FCRA Registration (FC-3)
• New user needs to sign up for completing the application form
• Fill the form and complete all the mandatory details
• Once the form is completed, click the save button after which “User id” will be generated automatically.
• Then applicant needs to sign up using the login credential generated automatically on the above procedure.
• Continue to start step by step registration.
• Once the entire form is completed, the applicant needs to scan and attach the documents in PDF Format.
• Complete the online registration by making online payment through online payment gateways.

Documents: Following documents shall be annexed with the online application:

• Self-certified copy of incorporation certificate, trust deed, or any other certificate hold by such entity
• PAN of NGO
• Copy of MOA & AOA of associations and institutions
• Signature of the chief judiciary in JPG format
• A detailed report on activities of the preceding three years.
• Audited copy of financial statement, P&L account, Income-Expenditure details, and cash flow statement of the preceding three years.
• CTC of the resolution passed by a governing body authorized by NGO
• Certificate obtained under section 80G and 12A of Income Tax. Section 80G and 12A provide tax exemption to NGOs under the Income-tax Act.

The minimum requirement for FCRA Registration

Following is the key requirement for applying FCRA Registration depending upon the type of registration such as:

a) Obligations for Proper FCRA Registration:

• The applicant shall be a registered entity and must be operating for a minimum of 5 years.
• Applicant entity must have spent at least INR 10 Lakhs in the previous three years for the attainment of its main objects for which the entity was registered excluding administrative expenses made.
• The last three years financial statement audited by a qualified chartered accountant shall be submitted by an applicant.

b) The obligation for Prior Permission FCRA Registration:

• If the newly registered entity is willing to receive a foreign contribution or foreign grants shall apply for prior permission
• During applying for the same, it shall give the details relating to a foreign owner who is contributing the fund
• The fund received shall be utilized only for the specified purpose

Eligibility for applying for FCRA Registration

Following are the eligible entities for applying for FCRA registration:

• Trust registered under the Indian Trust Act
• Societies registered under Indian Society Registration Act
• Section-8 companies incorporated under the Companies Act
• The applicant must be registered as NPO set up with charitable objectives for serving the society by promoting health, education, economic development, promotion of art, culture, religion, sports, etc
• The entity must not be prohibited in any form by the provision of the Foreign Contribution (Regulation) Act.
• Foreign contribution accepted shall not endanger the life or safety of any individual or shall not lead to any offence.

Non-Eligible entities for applying for FCRA Registration

Following entities are not allowed to be granted FCRA registration:

• The applicant is fictitious or Benami.
• Applicant against whom prosecution is conducted for indulging in any unfair activity
• An applicant who has been convicted or prosecuted for any communal tension made in any area of specified district or any part of the country
• Is engaged in any violent activities
• Has utilized foreign contribution for its personal use
• Any entity de-bared for accepting any foreign receipt or foreign grant under any provision of law.
• Any such acceptance of foreign grant that affects prejudicially:• The sovereignty of India• Public Interest• Relationship with any state.

Renewal of FCRA License

FCRA registration remains valid for five years, which can be renewed by applying for the renewal. An entity shall apply for renewal within the following timelines:

• At least six months before the date when the license is getting lapsed.
• At least 12 months before the date when registration lapses, in cases the entity is operating on a multi-year project.

Cancellation/Suspension of FCRA Registration

In case authorities are of the view that registered entity is not operating as per the provisions of law and its license needs to be cancelled, such authority can do so by giving the notice to the concerned entity. Following are the few reasons that can be considered while cancelling the license:

• NGO fails to comply with the provisions of the Foreign Contribution (Regulation) Act.
• If the entity fails to submit an annual return within the due date
• In case any inquiry is made for any allegation imposed against such organization for any wrongdoing in operations, and such allegation proved to be true
• Contribution received is not utilized for the attainment of the main object of entity neither for achieving the purpose stated during FCRA registration application