NGO india rules.

Following are rules for ngo’s in india.

Section 8 of Companies Act,2013.

NGO as a ‘Section-8 Company’:

As per Section 8(1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 company can be established for If the NGO is intended to be in the form of an organization ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or any such other object. The NGO can be registered as a ‘Section-8 Company’. Thereafter, it has to function as a not-for-profit organization and thus, all profits generated during the course of its functioning have to be applied for promoting the objectives of the organization i.e. no dividend can be paid to the members of the company.

Registration of Ngo:

To register as a Section-8 company, the provisions regarding incorporation of a company as contained in the Companies Act, 2013 would be applicable. Thus, Section-8 companies would be governed by the same act throughout the country. In this sense, they are very similar to other limited companies. Only few differences exist such as a section-8 company does not have to add the word ‘limited’ at the end, the income generated through its working cannot be paid as a dividend to the shareholders, it enjoys tax benefits which are enjoyed by the trusts etc. The incorporation and registration of the section-8 companies are also similar to that of normal companies.

Section 20 of Society Regulation Act,1860.

An NGO with seven or more members can be registered as a society (under the provisions of the Societies Registration Act). Even though the process of registration is more cumbersome and complex than other methods, a society gives more flexibility in its functioning and working. An NGO can be established as a society under the Societies Registration Act, 1860. Section 20 of the Act lays down certain areas of working in which an NGO can be formulated as a society. A Society can be formed for the promotion of literature, science or fine arts or the diffusion of useful knowledge or political education or for charitable purposes. As per Section 20 of the Societies Act, 1860, a Society can be registered for the following purposes: Grant of charitable assistance.

Creation of Military Orphan funds.

Promotion of Science.

Promotion of Literature.

Promotion of Fine Arts.

Promotion or Instruction or Diffusion of useful Knowledge.

Diffusion of Political Education.

Foundation or maintenance of libraries or reading rooms.

Foundation or maintenance of Public Museum or Galleries.

In addition to the above purposes specified by the Societies Act, 1860, a Society can also be registered for other purposes based on the amendment that has been enacted to the Societies Act, 1860 by the concerned State Government. https://www.indiafilings.com/learn/uttarakhand-society-registration(Important)

A Society can be formed by a minimum of seven or more persons. Besides persons from India, foreigners, companies and other registered societies can subscribe to the Memorandum of a society. Like Partnership Firms, Societies can also be registered or unregistered. However, only registered Societies can hold vested properties and/or have a suit filed by or against the Society. Society registration is managed by State Governments. Therefore, the application for registration of society must be made to the concerned authority in the State, in which the registered office of the Society will be situated. To register a Society, the founding members must first agree on a name for the Society and prepare the Memorandum and Rules and Regulations of the Society.

#### Society Registration – Name Selection While choosing a name for the society, it is important to remember that as per Societies Act, 1860, similar or identical name of an existing registered society is not permitted. Further the proposed name for the society must also not suggest patronage of the Government of India or any State Government or attract the provisions of Emblem and Names Act, 1950. Memorandum of a Society The Memorandum of the Society and the Rules and Regulations of the Society must then be signed by each of the founding members, witnessed by an Oath Commissioner, Notary Public, Gazetted Officer, Advocate, Chartered Accountant or Magistrate 1st Class with their official stamp and complete address. The following documents must be prepared, signed and submitted for Society.

Registration:

Covering letter requesting registration of the Society, signed by all founding members. Memorandum of Association of the Society in duplicate along with a certified copy. Rules and Regulations of the Society in duplicate along with a duplicate, duly signed by the founding members. Affidavit sworn by the President or Secretary of the Society stating relationship between the subscribers. Address proof for the registered office of the Society and No-Objection Certificate from the Landlord. The signed Memorandum and Rules and Regulations must then be filed with the concerned Registrar of Societies in the State with the prescribed fee. If the Registrar is satisfied with application for Society Registration, the Registrar would certify to deem the Society to be registered.

Section 2(15) Income Tax Act,1961.

“charitable purpose” includes relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility:

Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless—

##### (i) such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and ##### (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year;

Section 12(A) of Income Tax Act,1961.

Section 80(G) of Income Tax Act,1961.

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