NGO registration in India can be a daunting task due to various challenges. It is a complex process that requires proper planning and preparation. In this article, we will discuss registration process of an NGO and some of the challenges that organizations face during the NGO registration process and offer some solutions to overcome them.
Registration process of an NGO
Step-by-step guide for NGO registration:
- Decide on the type of NGO
The first step is to decide on the type of NGO, whether it should be registered as a society, trust, or non-profit company. This decision should be based on the objectives and activities of the NGO.
- Choose a name for the NGO
The name of the NGO should be unique and not similar to any other registered NGO in the state.
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA)
The MOA and AOA should be prepared, which describe the objectives, activities, and rules of the NGO.
- Obtain the required documents
The required documents should be obtained, such as address proof of the registered office, identity proof of the members, board resolution authorizing the registration, bank account details, and fee payment receipt.
- Submit the application for registration
The application for NGO registration should be submitted to the Registrar of Societies, Registrar of Trusts, or Registrar of Companies, depending on the type of NGO.
- Follow up with the Registrar
After submitting the application, follow up with the Registrar to ensure that the application is processed on time. The Registrar may ask for additional documents or clarification during the process.
- Obtain the Certificate of Registration
Once the application is approved, the Certificate of Registration will be issued. This is a legal document that confirms the registration of the NGO.
- Apply for tax exemptions
After obtaining the Certificate of Registration, the NGO can apply for tax exemptions under Section 12A and 80G of the Income Tax Act, 1961.
- Open a bank account
The NGO should open a bank account in the name of the organization and start its operations.
Problems faced during registration and their solutions
There are certain problems which can be faced during an NGO registration and solutions provided for them:
- Lack of Information
Many organizations lack adequate information about the NGO registration process. This can lead to mistakes and delays in the registration process.
It is essential to gather information about the registration process, including the legal requirements, necessary documents, and the registration authority. You can also consult with legal experts or hire professional registration services to assist you.
- Lengthy and Time-Consuming Process
The NGO registration process in India can take a long time, often spanning several months. This can be a challenge for organizations that require immediate funding and resources.
To overcome this challenge, organizations can start the registration process early and plan accordingly. They can also hire professional registration services that have experience in the registration process and can expedite the process.
- Complex Documentation
NGO registration requires various documents, including organizational documents, financial statements, and board member details. The documentation process can be complex and time-consuming.
Organizations can prepare the necessary documents in advance and ensure that they are complete and accurate. They can also seek professional assistance in preparing the documents.
- Lack of Funds
The NGO registration process can be expensive, and many organizations may not have the necessary funds to complete the process.
Organizations can explore funding opportunities through grants or loans. They can also seek pro-bono legal services or hire professional registration services that offer affordable rates.
- Understanding of Legal Requirements
NGO registration requires a thorough understanding of legal requirements and compliance regulations.
Organizations can consult with legal experts or hire professional registration services that have a deep understanding of the legal requirements and can ensure compliance.
The NGO registration process in India can be challenging, but it is essential for organizations that want to operate legally and receive funding and resources. By understanding the challenges and implementing the solutions mentioned above, organizations can overcome these obstacles and successfully register their NGO. It is also crucial to seek professional assistance and support throughout the registration process to ensure compliance and avoid any legal issues in the future.