NGO FIRM
A trust/NGO firm is a type of non-governmental organization (NGO) that is established as a trust under the Indian Trusts Act, 1882 or any other state-specific law. A trust is an arrangement where one party (the trustee) holds property or assets for the benefit of another party (the beneficiary).
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What is NGO Registration
A trust/NGO firm is a type of non-governmental organization (NGO) that is established as a trust under the Indian Trusts Act, 1882 or any other state-specific law. A trust is an arrangement where one party (the trustee) holds property or assets for the benefit of another party (the beneficiary). A trust/NGO firm is formed for charitable, religious, educational, or social purposes and does not aim to make any profit. A trust/NGO firm can receive donations and grants from individuals, corporations, or government agencies, but it cannot raise funds from the public by issuing shares or debentures. A trust/NGO firm is governed by a board of trustees who are responsible for managing the affairs of the trust and ensuring that its objectives are fulfilled. A trust/NGO firm has to file its annual accounts and returns with the relevant authorities and comply with the tax laws applicable to it. A trust/NGO firm is different from a society/NGO firm or a section 8 company/NGO firm, which are other forms of NGOs in India.
Types Of NGO Registration
Trust registration
This is when a property is transferred to a trustee for the benefit of the public. Trusts are usually formed for charitable causes such as poverty relief, education, medical aid, etc. Trusts can apply for land from the government, enjoy long-term taxation benefits, and have fewer audit formalities. Trusts are registered under the Indian Trusts Act of 1882
Society registration
This is when a group of individuals come together to promote a common goal such as science, social work, culture, art, etc. Societies are typically formed to advance philanthropic activities and have a democratic structure. Societies can become a separate legal entity, Societies are registered under the Societies Registration Act of 1860.
Section 8 company registration
This is when a company is formed to promote commerce, art, science, religion, charity, or any other useful object. Section 8 companies are not-for-profit entities that do not distribute profits to shareholders but use them for the company’s objectives. Section 8 companies can have a national presence.
What Are The Benefits of Registering a Trust/NGO Firm?
Some of the benefits of registering a trust/NGO firm are:
- Asset protection: A trust/NGO firm can protect its assets from being seized or attached by creditors or legal claims, as the assets are held by the trustee for the benefit of the beneficiaries.
- Privacy: A trust/NGO firm can maintain a high level of confidentiality and anonymity, as the details of the trust deed, the beneficiaries, and the assets are not disclosed to the public.
- Control over asset distribution: A trust/NGO firm can decide how and when to distribute its assets among the beneficiaries, according to the objectives and terms of the trust deed. The trustee can also make changes to the trust deed as per the changing needs and circumstances of the beneficiaries.
- Tax benefits: A trust/NGO firm can enjoy various tax exemptions and deductions, such as income tax, dividend distribution tax, minimum alternate tax, etc., if it is registered under Section 12A and 80G of the Income Tax Act, 1961. A trust/NGO firm can also receive donations and grants from individuals, corporations, or government agencies without paying any tax on them.
Document Required Income TAX
PAN Card
Your Permanent Account Number (PAN) card is a unique identification number that you’ll need for tax purposes. It’s a crucial document for filing your income tax return.
Aadhar Card
In many countries, including India, linking your Aadhar Card with your PAN card is mandatory for filing income tax returns.
Bank Statements
You may need bank statements for all your savings and current accounts to reconcile your income and expenses. These statements can also serve as proof of income and expenses.
Previous Year's Tax Return
Having a copy of your previous year’s tax return can be helpful, especially for reference and to report any carry-forward losses or tax credits.
NGO Registration Fees
The total fee for NGO firm registration in India is Rs 11,999 which includes the Government fee as well professional fee of GSTBOY.COM
Frequently Asked Questions
If you are still thinking about opting for GSTBOY.COM you can always check out the common queries about our service and support.
A Non-Governmental Organization (NGO) is a not-for-profit entity that operates independently of the government and is usually formed to address social, environmental, or humanitarian issues. NGOs can take various forms, including charitable trusts, foundations, or associations.
A Charitable Trust is a legal structure often used by NGOs to further their philanthropic objectives. It provides a framework for managing and distributing funds to support specific charitable causes, such as education, healthcare, poverty alleviation, or environmental conservation.
NGOs are distinct from for-profit organizations in that their primary goal is not to generate profit for owners or shareholders but to contribute to the social good. NGOs often rely on donations, grants, and volunteer efforts to fund their activities and pursue their mission.
In many countries, anyone with a commitment to a social cause can start an NGO. The process typically involves registering the organization with the relevant government authorities, outlining its mission and objectives, and adhering to specific legal requirements for nonprofit entities.