NGO Registration in India

NGO Registration can be obtained by making a trust deed, Memorandum of Understanding. The MOU contains full name and address of an NGO along with the objectives and mission of an NGO.

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Overview of Private Limited Company Registration

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

  • A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business.
  • Help owners from personal liability and protects from other risks and losses.
  • Draws more customers
  • Ease in obtaining bank credits
  • Offers limited liability to preserve your company’s assets
  • Greater funds supplement and more attractive stability
  • Enhance the potential to grow big and expand

Starting a private limited company offers many advantages. Some of them are as follows:

Limited Liability
The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
Separate Legal entity
A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
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FAQs

No, promoters are not eligible to receive any kind of dividend out of the earnings as Section 8 company work with charitable objects. If any promoter has incurred any expenses or cost while performing any duly on behalf of the NGO then only such amount can be reimbursed to the promoters by the organization.
Following are the minimum no of member required for NGO registration; 1. For Trust, minimum 3 members are required. One Assignee and minimum two trustees.
2. For Society, minimum 7 members are required. However, if the society is registered on national level than 8 members are required from different states.
3. For Section 8 Company, minimum 2 members are required.
In order to accept any king of foreign grants the NGO is required to acquire FCRA registration under Foreign Contribution (Regulation) Act, 2010.
Following person can become a member at the time of NGI registration;
1. Any resident individual.
2. Any foreigner can also subscribe to the incorporation document.
3. Any registered partnership Firm or limited Liability Partnership.
4. Company registered under Companies act, 2013.
5. Any registered society.
Yes. after NGO registration is completed you are recommended to apply for 80G and 12A registration under Income Tax Act, 1961. These registrations ensure dual tax exemptions, to the NGO as well as to its donors.

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