Getting an NGO registered in India doesn’t have to be expensive. We will cover the steps you need to take and the costs involved so that you don’t overspend.
What Is an NGO?
Non-governmental organizations are known as NGO’s in India. An NGO is not affiliated with the government, but rather promotes the public good independently.
NGO registration in India has a few requirements. In order for an NGO to be relevant to India’s society, it must have a purpose or goal relevant to it. NGO registration with the Indian government is the second requirement. In addition, the NGO must have a minimum membership, which can vary based on the type of NGO. As a result, it is important to verify the state laws as well as the national laws.
Registering an NGO
Registration costs for NGOs in India can be difficult to figure out, but there are some resources available. NGO registration costs can be estimated by contacting the Indian Ministry of Home Affairs (MHA) or the National Registration Authority (NRA). Detailed information about the registration process and costs can be obtained from both organizations.
NGO registration in India involves three steps: submitting an application, paying fees, and undergoing background checks. The application form can be found on the MHA website, and fees vary according to the type of organization being formed. There are also different fees charged by the NRA for different types of organizations. NGOs that receive foreign funding, for example, must pay additional fees.
Getting an NGO registered can take a few weeks to several months, but it’s worth it since it allows NGOs to operate freely and enjoy tax exemptions. It is relatively easy and affordable to register an NGO in India, but it is important to plan ahead.
Organisational Structure of NGOs in India
In India, registered non-government organizations (NGOs) are required to adhere to specific organizational structures, which vary from state to state. In general, NGOs must have a governing body composed of volunteers and donors from a variety of stakeholder groups. In addition, most NGOs are required to maintain a financial and operational budget.
Depending on the state in which the NGO is located, the registration and operating costs can vary. However, there are some common costs associated with starting and running an NGO, including:
– Application fee: The registration cost for a non-profit organisation can range from $100 to $500, depending on how many employees and resources it intends to hire.
– Tax ID number: For an NGO to operate legally in India, a tax identification number (TIN) must be obtained. An NGO’s TIN is assigned by the government and is generally required for all commercial activities.An NGO’s TIN is assigned by the government and is generally required for all commercial activities.
– Registration fees: State governments charge registration fees, which cover the cost of verifying an organization.
How much does it cost to register an NGO in India?
The most important aspect of registering an NGO is its eligibility for government assistance. These are some of the most common grants available to NGOs:
- A grant for startups (GST) helps new businesses get started and grow.
- National rural livelihoods mission (NRLM) – A financial assistance program designed to help rural communities build sustainable livelihoods.
- Social development fund (SDF) – Provides financial assistance to social welfare projects across the country.
Other costs involved
NGO’s must also register with the government and pay taxes and fees.The following are some of the more common costs:
- The cost of registering as a nonprofit organization with the government can range from $1,000 to $5,000.
- All donations to NGOs are subject to a registration tax of around 2%. The NGOs’ bank or credit card company typically deducts this tax.
- Each year, an annual registration certificate (ARC) must be submitted to the government. This certificate can cost between $10,000 and $15,000, depending on the country.
- Non-profit organizations must also file a non-profit organization tax certificate (NOTC) with the government every year. Certificates of this type can also vary in price, but are usually priced between $2,500 and $5,000.
Can individuals register as NGOs in India?
To register with the government of India, an individual or NGO must follow several steps. NGO registration can be time-consuming and expensive, but it is worth it if you want to participate in public policy. Following are the steps involved in registering:Following are the steps involved in registering:
- Gathering all the necessary documents is the first step. It includes a memorandum of association (or constitution), an officer list, and financial statements. The list of donors and your organization’s goals and objectives must also be included
- After that, you will need to submit an application to the Ministry of Social Justice and Empowerment. Your application must include your organization’s name, address, and contact information for board members. You may also need to provide documentation verifying your organization’s tax-exempt status in India
- The ministry will send you a notice confirming your NGO registration once your application has been accepted. Your organization will then need a secretary and a bank account. In addition, you will have to submit quarterly reports to the ministry.
An NGO’s registration cost in India can be difficult to determine, as there are a number of factors to consider. If you can find a helpful resource or two, it will likely be much less expensive than you expect. If you would like more information, please contact us. Thank you for reading this!