NGO Registration in Telangana

Overview of NGO Registration in Telangana

NGO stands for a non-governmental organization. It is a type of organization driven by the aim of social welfare rather than profit and primarily runs without government interference. 

As per the norms laid by the government for NGOs, they are required to use all the profit earned during a fiscal year to further their non-profit goals. These profits should not be distributed among the partners. 

An NGO can operate in a variety of fields, activities performed by NGOs include but are not limited to viz. art, commerce, science, sport, education, research, social welfare, religion, environmental and human rights work.

Registration of an NGO serves multitude of benefits. But before the enrollment for the registration process, you should be aware of the meaning of an NGO, how such an organization operates in Telangana and thereafter the criteria for registration of such an organization.

NGOs are categorized into three (3) classes mentioned here under:

1.    Trust 

Advantages – 

•    Applicable to get land from the government

•    Long-term taxation benefits

•    Lesser audit formalities

•    80G Deductions certificate benefits

•    Administrative autonomy

2.    Society

A registered society assumes a separate legal identity. Each member of the society is responsible for their acts and not the individual/collective acts of other members.

Advantages –

•    Income tax benefits and exemptions

•    Freedom to accept funds and donations

•    Ease in property acquisition

•    Can be easily winded

3.    Trust

Ideal for –

•    Easy transfer of ownership

•    A section 8 company is more credible. The registration process is governed by the central government, 

•    Its legal structure is considered more trustworthy in comparison with other categories

The process of NGO registration is governed by the below-mentioned laws:

1.    Indian Trusts Act of 1882 for Trust Registration

2.    Societies Registration Act of 1860 for Society Registration

3.    Companies Act of 2013 for Section 8 Company Registration

Benefits of NGO Registration in Telangana

1. Helps in availing tax exemption

2. Provides a right to acquire assets

3. No Requirement for a minimum share capital 

4. Protects from personal liability

5. No Restrictions on transfer of ownership

6. Provides an exemption on stamp duty

7. Facilitates Smooth perpetual succession

10. Access to admission to credit

11. Helps in name preservation

12. Helps in opening a corporate bank account

Eligibility Criteria to Start an NGO in Telangana

To be eligible to start an NGO in Telangana, you need to keep in mind the following points listed here:

Why is NGO Registration Required in Telangana?

• Registering an NGO in Telangana serves a lot of benefits by expanding the horizon of both financial and human resources and any NGO can benefit largely from this.

• Registration provides legal recognition to an NGO and can help to reinforce societal and ethical norms.

• A business having an NGO registration serves to the benefit of its owners by providing its members limited liability protection.

• The NGO Registration grants certain tax exemptions and exemptions from several annual compliances. 

NGOs in Telangana are eligible to receive rebates in income tax under the following heads –

• Section 12A and 80G. 

• Furthermore, 80G certification can used to attract more donors.

Documents Required for NGO Registration in Telangana

The documents enlisted hereunder are required for registration of an NGO in Telangana:

•    Memorandum of Association (MOA)

•    Articles of Association (AOA)

•    Company’s name for the approval

•    Aadhar Card/Voter ID/Copy of passport

•    Driving license/ identity proof of all the directors

•    Address proof of the office

What is the NGO Registration Process in Telangana?

• Firstly, you are required to choose the name and the type of NGO that you are willing to register.r

• Secondly, the applicant is obligated to obtain n DSC.

• After obtaining of DSC, the applicant must further obtain DIN-3 from ROC

• Thereafter, Drafting of the firm’s constitution is required i.e. the AOA and MOA

• Register the NGO with the appropriate authority

• After registration NGO must obtain a PAN card

• Finally, for the tax exception, NGOs must apply under Section 12A and 80G of the Income Tax Act.

Conclusion

An NGO can avail legal recognition, certain tax exemptions and several benefits after registration. NGOs in Telangana are eligible to receive rebates in Income Tax under sections 12A and 80G. It is ideal to register an NGO to gain legal credibility and to attract more donations. The assistance of an efficient legal team can facilitate smooth registration and the fulfilment of all post-registration compliances.

Want to start your NGO? Start with Section 8 as an NGO at a very affordable cost.

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Author:

Disha Chauhan
Delhi, India
Campus Law Centre, University of Delhi, Final Year Law