NGO/Trust Registration

A Non-governmental organization (NGO) refers to the organization which is established by a group of people to render their services not with the intentions of profit but with the sole purpose to help the society. The NGO is described as a non-profit making organization in which funds are raised from members, donors or contributors besides from receiving donations for their time or their energy and skills for accomplishing the social objectives such as imparting education, providing economic assistance to needy, providing medical facilities, managing disasters and other emergent situations.

NGOs are basically formed to serve the nation and its people. The main source of income or receipts of NGOs is donations or the subsidy, the grants from governments and the other donors who are willing to contribute to society. 

Arpitha & Associates assist in the registration procedures of Societies, Trusts and Section 8 Companies and host of corporate and charitable institutions. It provides single window services for all registration under Trust, Society, Section 8 Companies, 80-G, 12A, FCRA, 35AC, Section 35(1)(ii), Section 35(1)(iii) etc and NGOs, from conceptualization to fund-raising, project implementation to institution building, legal requirements to compliance services, Income Tax Services, Audit Services, FCRA compliance & FC3 returns, , Accounts Outsourcing Services, Trademark Registration, Copyright Registration and ISO Certification etc.

We guide our clients through the modes and methods, procedural formalities and the process of documentation. We also counsel them regarding the benchmark required for registration. Our panels of accountants with their sound professional information help organizations to meet the requisite criteria to obtain and avail tax exemptions for noble causes.

NGO REGISTRATION

NGOs can choose any option to select the form of their constitution 

Charitable Trust Registration 

Charitable Trust is the simplest and less time-consuming method for registering a NGO which is organized for the purpose of philanthropic and religious purposes. Charitable trusts are those trusts whose object is to provide the services to all people in the society without discrimination of cast, creed and gender etc. However, these charitable trusts can be formed only for the benefit of Schedule Cast/Tribe or women. The Government of India has given various exemptions to charitable and religious trust keeping in view of the services they render to the nation.

Society Registration 

A society is an association of several individuals combined using a mutual accord to deliberate, govern and act cooperatively for some communal purpose. Societies are usually registered for the advancement of charitable activities like sports, music, culture, religion, art, education, etc. Societies are usually managed by a governing council or a managing committee. Societies are governed by the Societies Registration Act 1860, which has been adapted by various states. Societies are similar in character to trusts, although there a few essential differences. While only two individuals are required to form a trust, a minimum of seven individuals are required to form a society. The applicants must register the society with the State Registrar of Societies having jurisdiction in order to be eligible to apply for tax-exempt status. Unlike trusts, societies may be dissolved.

Section-8 Non-Profit Company Registration

Section 8 is a company that is licensed under section 8 of Companies Act, 2013, formerly known as the section 25 company under Companies Act, 1956 with its main objectives to promote social welfare, religion, charity, protection of the environment, research, education, sports, commerce, art, science or any such other object; and intends to apply its profit, if any, or other income in promoting its object and intends to prohibit the payment of any dividend to its member.

Audit for NGO

There are four types of financial audit carried out for NGO to independently examine the activities of NGO and to verify that the NGO is working in adherence to law and order. The types of audits are as follows:

External Audit

An external audit is executed by independent auditors to give a professional opinion on the credibility and fairness of the financial statements on the basis of careful examination of an array of samples of the records. The opinion of the auditor plays an important role as it provides a set of proofs that financial reports are true and can be trusted by stakeholders, trustees and donors.

Internal Audit

An internal audit can be executed by the staff of the NGO or by competent professionals exclusively hired for audit. It includes verification of the NGO's policies and procedures and their consonance with law. This offers authenticated and updated information about the methods being followed to the trustees.

Donor Audit

A donor audit can be performed by the NGO’s external auditors or by donors themselves. This entrusts confidence among the donors that their donations have been duly utilized under the legal conditions. A successful audit often bolsters additional funding’s.

Investigative Audit

An investigative audit can be performed when an NGO suspects a particular issue (which is usually related to fraud) and auditor needs to uncover all the primary as well as secondary facts. The auditors may put forth the proofs for the next steps that the NGO may opt to take.

INCOME TAX REGISTRATIONS & COMPLIANCES

12 AA Registration 

35 AC Registration, 35(1)(ii) & 35(1)(iii)

80 G Registration

Annual Return Submission of Income Tax Returns

Audit Report of Income and Expenditure

Annual Report Submission to Registrar of Societies

FOREIGN CONTRIBUTION REGULATION ACT – FCRA 

FCRA Registration

FCRA Registration Renewal

FCRA Reports and Returns