Step 1: Apply for a Certificate of Digital Signature (DSC)

Step 2: Requesting Availability of Name

Step 3: Submitting a Section 8 License Application

Step 4: SPICe Form (INC-32) filing

Step 5: e-MOA (INC-33) and e-AOA (INC-34) filing

Step 6: Certificates of Incorporation, TAN, and PAN are issued

Documents you’ll get after NGO incorporation

Following Section 8 Company's incorporation, you will receive the following documents:

1. Certificate of Incorporation
2. Section 8 License
3. Permanent Account Number (PAN) of the company
4. Articles of Association
5. Memorandum of Association (MOA)
6. Director Identification Number (DIN)
7. Digital Signature Certificate (DSC)
8. EPF and ESIC registration documents
9. Company Master data. 

What is the Duration Required to Register an NGO?

The section 8 company process takes 10–14 days. The trust incorporation process takes 20 days. The society registration process takes an additional 25 days.

Benefits of NGO Registration

We are already familiar with the social, moral and humanitarian approaches any non-governmental organisation adopts. It is undeniably one of the biggest virtues, serving people or establishing a legal entity for expansion and attracting opportunities. Nonetheless, NGO Registration is here to serve as a catalyst and drive growth with the following benefits-

1. Tax Exemptions

NGO Registration comes with many tax benefits, which act as a boost to your NGO’s financial sustainability. After all, it all boils down to the nature of the NGO work, which is that you may find yourself eligible for exemptions, ranging from income tax, customs duties, and property tax. These incentives are a great way to maximize your impact and reach.

2. Legal Recognition

The registration process gives the NGO legal recognition as a distinct entity. It distinguishes the organization from its founders or members and establishes its identity and validity. This accreditation enhances the NGO's legitimacy and credibility in the eyes of stakeholders, including funders, beneficiaries, and government representatives. 

3. Ability to purchase Assets

After obtaining legal registration, your company will be allowed to make real estate purchases, retain fixed assets, and/or incur liabilities. The legislation forbids unregistered organisations from buying, retaining, or selling land. 

4. Organizational structure

An NGO is a great way to have an organizational structure in place, one that has a specified number of board members acting as a governing body along with the trustees. This is mainly to ensure transparency within your organization’s operations and make sure that decisions are taken collectively. Now, once you have the necessary structure in place, you can aim for long-term growth and sustainability.

5. Increase visibility

NGO Registration focuses on serving as the gateway to opportunities along with the partnerships held with other organisations. These platforms, therefore, connect with the NGOs, giving them a platform to represent their work, collaborate and be a part of joint initiatives. Undoubtedly, they exemplify the impact, better your reach and connect with like-minded individuals. 

6. Legal protection and benefits

Organizations that are registered as non-profits are granted benefits and rights. Laws regulate their organization, operations, and activities. In the event of a dispute, this arrangement shields the organization from capricious intervention and lays the groundwork for legal action.

7. Accountability and transparency

NGOs frequently need to abide by governance and reporting standards in order to be registered. This promotes accountability and openness within the company, ensuring that funds are distributed wisely and projects are carried out successfully. Regular reporting and audits increase stakeholder confidence and transparency. 

How to Raise Funds for NGOs in India?

1. Events

Organising an event is a proven method to mobilise funds and support for a cause. Many organisations who engage in fundraising for the first time choose to run an event. The range of event types is endless, and new creative events are invented every day. One can raise a lot of funds with an event that is well organised but should balance the resources invested versus the expected gains. It is wise not to choose a one-off event but to select or develop one that can become a recurring activity (e.g. annually). Thus, the experience of the organisers and public awareness can grow by repetition, and very often, profits will grow as well.

2. Personal solicitation

Meeting potential individual donors face to face offers excellent opportunities to mobilise support and funding. After all, personal contact has a stronger impact than any other form of communication. Personal solicitation is a time-intensive way of mobilising support, which, depending on the size of the gift you are planning to ask, can take some time before the relationship and trust have developed to the stage where you can make the ask.

3. Network Fundraising

Network fundraising or Friend raising means that you approach new donors through your own networks and contacts. A ‘friend-to-friend’ approach works like an inkblot and can be used almost everywhere. This method is especially effective if you cooperate with so-called ‘connectors, ' meaning people who know a lot of other people, people who are well-known and respected in their community, and who are prepared to spread the message amongst their network. However, any existing donor or other well-wisher can also be a good source of new donors. You can also involve the own staff and board members of an organisation to promote the cause. People are more easily inclined to give when directly asked by a person they know and respect rather than when asked by a stranger.

Network fundraising can be done through social media such as Facebook, through e-mailing or through personal contact. This fundraising can be done by any organisation, but it works especially well when an organisation has good contacts with journalists, the media, and/or a large group of followers.

4. Online Fundraising

Over the past ten years, fundraising via online media has literally exploded. However, we know that some continents and countries have much stronger access to the internet than others. But it is undeniable that the situation is changing quite rapidly everywhere in the world. This technological transformation creates a vast potential for fundraising via online giving platforms (e.g. Social for Action), mobile phones (via Instant Messaging (I)) and social networks (Facebook, Instagram, Twitter). The evident advantages of e-giving are the speed, flexibility, low cost, wide outreach and online help that this type of fundraising provides. Often, online fundraising is combined with other types of offline, live activities, such as events.

5. Volunteering

Volunteers can play a really important role in an organisation, bringing in extra time and expertise at far lower costs than when recruiting a member of staff. At the headquarters, volunteers can be used to provide general help around the office with their expertise or provide a particular service. Volunteers can also assist in fundraising. Many organisations also mobilise volunteers for (part of) the implementation of their programmes. There are some costs involved in using volunteers, though, as volunteers need supervision and compensation for expenses, e.g. travel.

6. Donations in Kind

Apart from money, support in kind can be a very good additional way of mobilising resources needed for the organisation and its cause. Many people are more willing to contribute donations in kind than to give money. This applies to individuals as well as companies.

7. Raising Money from Young People and In Schools

Raising resources from young people and in schools goes hand in hand and should always be connected with the objective of getting them to understand the work of the organisation. Children are likely to have time rather than money, but they also have access to the support of their families. Fundraising with young people will foremost involve young people in the cause and lay an important base for future support.

8. Periodic Donation Through the Adoption of a Project

Recruiting regular donors is a proven method to keep donors involved for a long period of time. This approach links the donation to the support of an individual beneficiary or a specific piece of work. It encourages people to give on a monthly or yearly basis. Donors continue to give for a long time when they feel an emotional connection and when their involvement is nurtured in a good way. This way of giving works best with existing donors. Periodic donations are the most durable and stable source of income: the most effective way to run an organisation!

9. Collections

Collections can be a successful strategy to raise funds when you can mobilise enough people who want to do the collecting. There are different kinds of collections:

• Collections in churches and amongst the local community

• House-to-house collections, where a person visits homes and asks for support

• Street collections, where collectors ask people on the streets to donate

• Collection boxes in shops, companies or public places

• Collection boxes at the homes of supporters of an organisation

The strength of a collection is that, over time, one can reach a very large audience. Apart from raising funds, a collection can also have an impact in terms of awareness creation and publicity for a cause.

10. Product Sales

This involves the sales of products from which a (preferably large) share of profits goes to the organisation. You can think of products made by the organisation itself, by the beneficiaries of the organisation, by the community, or those produced ‘in license’ and sold through commercial channels. Product sales have the advantage that the buyers receive something tangible in return for their money and that they are reminded of the organisation when they use the product. On the other hand, it can be a financially risky enterprise that requires a very different skillset from an organisation. Thorough research, knowledgeable partners, and starting on a small scale are therefore advisable.

11. Corporate Partnerships

For non-profit organizations, forming corporate partnerships can be a significant source of funding. Companies may be willing to sponsor or underwrite your organization's programs or events because social responsibility is emphasized by so many organizations. This is especially true if your group's efforts complement the company's mission or values. Corporate gift matching programs, in which an organization matches employee donations with an equal amount, are another common feature of corporate partnerships. Businesses that collaborate with non-profits occasionally provide their executives or staff to the latter in order to help them raise funds or provide volunteers.

12. Crowdfunding

If you’re looking for a way to raise money fast, using a crowdfunding platform like Social for Action may be a wise choice. With this option, you can quickly and easily solicit contributions from people who might be able to provide gifts of all sizes. This option has the potential to go viral and can be used to raise funds for a specific project or to quickly raise funds for an unexpected need that calls for a prompt response, like collecting money to assist those impacted by an unexpected tragedy or funding unanticipated repairs to the building where your organization offers community services.

Why sangeethatax?

We at sangeethatax offer expert consultation to help you choose the right kind of Non-profit organization as per your requirements. With a deep knowledge in obtaining NGO Registration, the team has expertise in this area. Our proficiency in understanding the complexities of the process allows us to offer comprehensive consultation services to our clients, including thorough research, meticulous documentation, and efficient coordination.