Frequently Asked Questions about NGO Registration in India
Q1. After NGO registration am I eligible for government funding?
In general practice you will be eligible for government funding after 3 years of successful NGO registration. However, in certain special cases if the NGO can get project approvals government funding can be acquired after just one year of NGO registration.
Q2. Can a Section 8 company pay dividends to its promoters?
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.
Q3. What is the minimum member requirement for NGO registration?
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.
Q4. After NGO registration can it accept foreign grants?
In order to accept any king of foreign grants the NGO is required to acquire FCRA registration under Foreign Contribution (Regulation) Act, 2010.
Q5. Can a newly registered NGO apply for FCRA registration?
In general practice FCRA registration can be applied only after expiry of 3 years from the date of NGO registration. However, after successful NGO registration the entity can apply for 'prior approval' under FCRA regulation for accepting foreign remittance.
In order to apply for prior approval following conditions must be satisfied;
1. The foreign grant will be remitted by a specific contributor.
2. Such grant will be utilized for a specific project.
3. NGO must be in possession of a approval letter issued by such contributor.
Q6. What are the factors to consider while selecting a name for NGO registration?
The most important point of consideration before initiating the NGO registration procedure is finalizing a name for the proposed NGO. Following factors must e considered in the process;
1. The proposed name must not violate any of the provisions of The Names and Emblems (Prevention of Improper Use) Act 1950.
2. The proposed and must not be obscene or shall not indicate any kind of mis-regard to any section of society or group of people.
3. The name for the proposed NG registration must not indicate any kind of affiliation to any government body.
4. Name must not be similar to any already registered entity in that particular category.
Q7. Who can become a member at the time of NGO registration?
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.
Q8. Is there any tax exemptions granted after NGO registration?
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.
Q9. Why should I choose Enterslice?
At Enterslice, we have group of expert professionals like Chartered Accountants, Company Secretaries, lawyers and other industry experts who are dedicated towards a common goal i.e. customer satisfaction. We provide consultation is choosing the best business model for your non-profit organization.
Along with that we ensure smooth and hassle free NGO registration services.
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