
NGO Experts is a legal company dedicated to helping non-profit organizations with their registration process. One of the key steps in starting an NGO in India is obtaining a 12A registration. This registration offers tax exemptions to non-profit organizations, making it an essential process for NGOs. In this article, we will guide you through the procedure to register an NGO and explain the importance of 12A registration.
What is 12A Registration?
12A registration is a process that allows an NGO to gain tax-exempt status under the Income Tax Act. This registration is crucial for organizations that want to avail themselves of exemptions on income tax and maintain their non-profit status. With 12A registration, the NGO can accept donations and funding from individuals or organizations without worrying about tax implications.
NGO Procedure for Registration
The procedure to register an NGO is straightforward but requires careful attention to detail. First, you need to decide the type of NGO you want to form. NGOs can be registered under various acts such as the Societies Registration Act, the Trust Act, or the Companies Act. Choose the structure that best suits your organization’s goals.
Once you decide on the type of NGO, the next step is to gather all the necessary documents, including the memorandum of association (MOA), articles of association (AOA), and details about the governing body members. These documents will be required to register the NGO with the relevant authorities.
After gathering the necessary documents, submit the registration application to the appropriate government department. The government will review your documents and grant approval once everything is in order. This process can take a few weeks, so be patient.
Procedure to Register NGO for 12A Registration
Once your NGO is registered, you can apply for 12A registration. Here’s the procedure to register ngo for 12A registration:
- File Application: You must file an application with the Income Tax Department. The application should include documents like your NGO’s registration certificate, a copy of your trust deed or memorandum of association, and financial details of the organization.
- Submit the Form: The form for 12A registration can be filled out online. You will need to upload the necessary documents and provide details about your NGO’s objectives and activities.
- Verification Process: The Income Tax Department will verify the details provided in the application. This process may take some time. They may request additional documents if necessary.
- Approval: Once the department is satisfied with the application, they will approve the 12A registration. This will give your NGO the legal status to claim tax exemptions.
Importance of 12A Registration for NGOs
The 12A registration provides several advantages to NGOs. First, it allows organizations to receive donations without worrying about tax deductions. Secondly, 12A registration helps establish credibility for the NGO, encouraging more individuals and organizations to donate to the cause.
Additionally, it helps the NGO in accessing government grants and other funding opportunities. Without 12A registration, an NGO would not be able to avail these benefits.
Conclusion
Registering an NGO and obtaining 12A registration is a crucial step for any non-profit organization. The procedure to register NGO involves careful planning and documentation, but with the right guidance, it can be completed efficiently. NGO Experts can help you navigate through the NGO procedure for registration and ensure that your NGO is set up properly, legally, and with all the necessary tax exemptions. If you are planning to establish an NGO, make sure to follow the correct steps for 12A registration to reap the benefits of tax exemptions and grow your organization.