Overview of NGO registration in Maharashtra
Non-Government organisations are essential for the welfare of the people of the state. It is an entity in which the government plays no role. These Non-profit organisations are run by volunteers, people and associations whose primary motive is societal well-being. They deal with a barrage of tasks such as women empowerment, child education and welfare, environment conservation, social awareness and poverty alleviation, to name a few. Many instances in the past decade have shown us the importance of NGOs and their role in a populous state such as Maharashtra. To function smoothly in compliance with the law and the government, an NGO must get itself registered. NGO registration in Maharashtra can be completed in three ways:
- Registering your NGO as a Trust
- Registering your NGO as a Section 8 Company
- Registering your NGO as a Society
Benefits of NGO Registration in Maharashtra:
Benefits of Registering as a Trust
- The government may provide land if the trust is created for charitable or religious purposes.
- These NGOs are permitted to use a registered government name.
- They are entitled to Tax exemptions.
- Donors can claim 80G tax benefits.
- The Indian government may give capital construction of the office.
Benefits of Registering as a Society
- Registration of an NGO as a society will make it a separate legal entity. This means that all members shall be responsible for their individual actions and not the entire group.
- The membership of an NGO registered as a society is limited, and their liability shall be equal to the shares they hold.
- An NGO that is registered as a society has the benefit of tax deductions.
- The members of an NGO registered as a society under the Societies Act of 1860 have exclusive use of its name and assets.
Benefits of Registering as a Section 8 Company
- Basic funding is not needed to establish an NGO as a Section 8 Company.
- NGOs registered under the companies act become separate legal entities.
- Various types of Tax exemptions are given to an NGO registered under Section 8.
- It is more credible for fundraising campaigns as compared to the other two forms.
Change of ownership is much easier for both movable and immovable assets.
Types of NGO registration in Maharashtra:
Ngo registration in Maharashtra as a Section 8 Company
Registering an NGO as a section 8 company is the most common practice. This form of registration shows credibility to the stakeholders, such as donors and the government. These NGOs must be registered as charitable institutions under the Companies Act of 2013. They should promote science, arts, sports, religion, social welfare etc. The NGO under this can be registered either as a private or public limited company.
NGO registration in Maharashtra as a Trust
NGO registration as a Trust must be done per the Indian Trust Act of 1882. Here, the trustor pledges his property to trustees for the benefit of a third party known as the beneficiaries. There are two types of trust, namely, Public trust and private trust. The NGOs register themselves as a public trust as the public trusts do not have any specific beneficiaries and are accessible for the welfare of the public at large.
NGO Registration in Maharashtra as a Society:
Society is a form of Not for profit organisation. It is created by individuals who volunteer to obtain a non-profit objective and further a charitable cause. The society must register itself as per the provisions of the Societies Registration Act,1860. The members of such NGOs are liable for up to the shares each of them holds.
Pre-requisites for NGO Registration in India
Section 8 Company
Documents Required for NGO registration In Maharashtra.
- Identity proof or all the members
- Utility bills of the registered office
- Documents showing the registered office address
- Memorandum of Association
- Copy of passport
- PAN details of the members
- A copy of Bye-laws (For society registration only)
- Articles of Association ( For Section 8 company only)
- Documents showing Identity proof of all the directors ( For Section 8 company only)
- Trust Deed ( For Trusts only)
Process of NGO Registration in Maharashtra
NGO Section 8 Company Registration
- Apply for DSC
- Check for availability of name on the portal
- Apply for section 8 License
- Filling up the forms of SPICe (INC-32)
- PAN, TAN and incorporation certificate shall be issued
- Get the organisation name approval
- Creation and filing of Bye-laws
- Creation of Trust deed
- Getting the deed registered with the registrar
- A registration certificate shall be issued.
- Application for name approval
- Draft and file memorandum of association
- Getting the rules and regulations approved
- Issuance of the registration certificate and memorandum