NGO Compliance
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Services we provide under NGO Compliance
- NGO Compliance
- Section 8 Complaince
- CSR-1 Filing
- Sec.80G & Sec.12A
- Darpan Registration
NGO Darpan Registration
NGO Darpan is a service provided by NITI Aayog that allows VOs (village organisations) and NGOs (non-government organisations) to be eligible for new government schemes and grants. Furthermore, completing NGO Darpan Registration is mandatory in order to possess any credibility as a non-profit organisation.
Time Taken
NGO Darpan is usually registered within 1 week from the date of submission of documents.
Documents Required
- Copy of the registration certificate as a PDF or JPG
- Pan Card of NGO
- PAN and Aadhaar card copies of 3 members in the executive committee
- Name of NGO/VO
- NGO address
- Registration number
- Date of registration
- Details of three members who are on the executive committee
- Details about funding from the government and chief area of working.
NGO Registration/Revalidation Under Section 80G and Section 12A
NGOs primarily rely on donations to support their functioning. To make these funds exempt from taxation, NGOs are to register under Section 80G and Section 12A of the Income Tax Act. This cannot be obtained without Darpan registration.
80G registration helps you receive donations and enables you to issue exemption certificates to those who have contributed to your NGO. Whereas, 12A registration exempts your NGO’s excess income over expenditure from income tax purview.
Moreover, recent changes have mandated that all the NGOs who have already registered under these 2 sections get re-validated under sections 80G and 12A to continue enjoying those tax benefits.
Time Taken
The overall process may take up to three months, where the application shall be made within 1 week from the date of submission of documents. The registration has to be revalidated every 5 years. The re-application has to be made six months before the date of expiry of the registration.
Documents Required
- Copy of the registration certificate as a PDF or JPG
- Pan Card of NGO
- PAN and Aadhaar card copies of 3 members in the executive committee
- Name of NGO/VO
- NGO address
- Registration number
- Date of registration
- Details of three members who are on the executive committee
- Details about funding from the government and chief area of working.
CSR-1 Registration
If you are operating an NGO and seeking CSR funding, it is mandatory to register with the MCA by filing Form CSR-1 as soon as possible.
Form CSR-1 is for the ‘Registration of Entities for Undertaking CSR Activities’. All entities planning CSR projects must submit this form to the MCA portal.
Time Taken
CSR-1 registration is usually done within 1 week from the date of submission of all documents. We will file the Form CSR-1 on the MCA’s website on behalf of your organisation.
Documents Required
- Copy of PAN card of the NGO Registration
- Mail ID and mobile number
- Details of Governing Body Members
- Copy of registration certificate
- NGO Darpan ID
- Digital Signature of the authorised person with their PAN.
- Check out the full information on CSR-1 registration here
Section 8 Companies Annual Compliances
If you are a Section 8 company, you can opt for our annual compliance package designed specifically for Section 8 companies. The primary list of compliance tasks that are required and will be done for you under the package are listed below:
Other compliance activities are available on request.
- Appointment of an auditor
- Maintenance of a register
- Convening statutory meetings
- Report by directors
- Financial statements of the company
- Tax returns
- Filing of financial statements
- Filing returns
Why Spinach Laws ?
Spinach Laws assists NGOs and VOs in filing forms and annual returns accurately, ensuring the acceptability of any information submitted to department and ministry websites.
- Our CA/CS will fill out the application and submit it on your behalf
- We guide you through the entire process
- You just need to share the relevant login credentials to start the application process.
- All of this is done from the comfort of your home
- Spinach Laws has the experience of working with thousands of NGOs and understands the needs of such organisations
Annual Compliance for Section 8 Companies
Every Section 8 company has to carry out the annual compliance tasks listed under the Companies Act, 2013 and Income Tax Act, 1961. This ensures that the company is trustworthy and credible while avoiding penalties for non-compliance. Compliance tasks need to be carried out throughout the year and can be tedious.
Spinach Laws annual compliance package for Section 8 Companies ensures these tasks are taken care of for you by experts. It saves your time and energy so that you can focus on the core activities of the company.
Benefits of Being Compliant
- Increases the credibility of the company
- Builds trust
- Helps avoid legal complications
- Avoid paying penalties
Annual Compliance Tasks
The following are the annual compliance tasks required to be carried out by Section 8 Companies. All of these are included in the compliance package.
- Appointment of an Auditor: Under Section 139 of the Companies Act 2013, it is mandatory for companies to appoint an auditor. We will appoint an auditor for you.
- Maintenance of a Register: The company shall maintain a statutory register consisting of loans obtained, charges created, its members, etc as enumerated under Section 8 of the Companies Act, 2013.
- Convening Meetings: Annual general body meetings and other statutory meetings have to be conducted.
- Report by Directors: Directors of the company shall file their annual report, consisting of fiscal data and corporate social responsibilities, in an appropriate manner. The board directors are responsible for this report and Spinach Laws will assist them with it.
- Financial Statement of the Company: The balance sheet, profit and loss A/C, cash flow statement, and other financial statements to be filed by the company for the previous financial year.
- Tax Returns: At the end of every assessment year, before the 30th of September, tax returns are to be filed.
- Filing of Financial Statements: The financial statement shall be filed in the appropriate form (E-FORM AOC-4) within 30 days from the last general body meeting.
- Filing Returns: Companies need to file Form MGT-7 with the Registrar of Companies (RoC), for filing returns within 60 days of the annual general meeting.
Other Compliances
Apart from the list of annual compliances mentioned above, a compliance for Section 8 company may have to perform other compliance tasks depending on the situation. While our package doesn’t include such tasks, you might get it done on request at an additional cost. Examples of such tasks are:
- Director’s consent form (Form DIR 2) to occupy the office within 30 days from the director’s appointment
- Returns form (Form MR-1) within 60 days from the appointment of a managing director, manager, or other key managerial posting
In case your company takes donations or funding from donors, then those incomes are eligible for tax exemptions. To claim that exemption, the company has to comply with the conditions specified under Section 11 and register under Sections 80G and 12A. Again, this is not covered under the annual compliance package but is available as a separate service.
Penalties for Non-compliance:
Non-compliance may lead to penalties ranging from ₹25,000/- to ₹5,00,000/- and/or imprisonment. It can also lead to the company and its directors being blacklisted for some time.
Why Spinach Laws
Spinach Laws is experienced in assisting Section 8 companies with filing forms and annual returns accurately, ensuring the acceptability of any information submitted to department and ministry websites.
- Our CA/CS will fill out the application and submit it on your behalf
- We guide you through the entire process
- You just need to share the relevant login credentials for the process.
- All of this is done from the comfort of your home
- Spinach Laws has the experience of working with thousands of NGOs and understands the needs of such organisations
- Your information is always safe with us
An Overview
It has now been made mandatory for NGO Company Registration in order to undertake CSR activities funded by companies and corporations. To receive CSR funding, all NGOs must register with the central government by submitting Form CSR-1. This requirement permits the effective monitoring of CSR spending in the country.
What is CSR-1?
CSR-1 is a registration form that is filed in order to get CSR funding. The Ministry of Corporate Affairs made it mandatory that all entities undertaking Corporate Social Responsibility (CSR) have to file eForm CSR-1 for all their CSR projects. This form is signed and submitted digitally after verification by a Chartered Accountant (CA), Company Secretary (CS) or Certified Management Accountant (CMA). This is done to monitor CSR spending in the country.
Importance of CSR-1
- It boosts the public image of the entity
- It strengthens the goodwill of the NGO
- CSR activities become hassle-free
- Securing funding from corporate has fewer legal hurdles.
Laws Associated With CSR Registration
The laws related to the filing of eForm CSR-1 is according to Section 135 of the Companies Act 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014.
Eligibility Criteria for NGOs
- NGOs can be eligible for CSR registration if they match the following criteria:
- The NGO is to be registered as a section 8 company registered under Section 12A and 80G of the Income Tax Act. It should have at least 3 years of experience in undertaking charitable activities.
- It should be a registered public trust registered under Section 12A and 80G of the Income Tax Act. It should have at least 3 years of experience in undertaking charitable activities.
- It should be a registered society registered under Section 12A and 80G of the Income Tax Act. It should have at least 3 years of experience in undertaking charitable activities.
Filing of Form for CSR Funding
As per Rule 4(2) of the CSR Amendment Rules, 2021 the following procedure is to be followed:
- The entity has to electronically file the form CSR-1 with the Registrar in order to register itself with the Central Government
- As mentioned earlier, it has to be digitally verified by a CA, CS or CMA
- On submission, a unique CSR registration number will be generated.
Checklist:
Section 8 companies, public charitable trusts, or societies registered under section 12A and 80 G of the Income Tax Act
Time Taken:
CSR-1 registration is usually done within 1 week from the date of submission of all documents. We will file the Form CSR-1 on behalf of your organisation.
Documents Required:
- Copy of PAN card of the NGO
- Mail ID and mobile number
- Details of governing body members
- Copy of registration certificate
- Copy of 12A & 80G exemption certificate
- NGO Darpan ID
- Digital signature of the authorised person with their PAN
Attachments Required for Filing Form CSR-1
- Company CSR policy
- Company CSR report
- Company sustainability report
- Details of subsidiary(s)
- Details of other entity(s).
Introduction
NGOs primarily rely on donations to support their functioning. To claim those tax exemptions (available to both donors and recipients), NGOs are to register under Section 80G and Section 12A of the Income Tax Act. The process is complicated and time-consuming, and it can be difficult for non-professionals to do it.
Moreover, recent changes have mandated that all the NGOs who have already registered under these 2 sections re-register under sections 80G and 12A to continue enjoying those tax benefits. Further, if an NGO seeks CSR funding, they are required to register using Form CSR-1.
Re-validation Under Sections 12A and 80G
Time Taken:
The overall process may take up to three months, where the application shall be made within 1 week from the date of submission of documents. It holds a 5-year validity and requires renewal every 5 years.
Documents Required:
- Registered trust deed/society registration certificate/incorporation certificate
- Self-certified copies of audited annual accounts for the preceding three financial years
- NGO DARPAN ID (if receiving government grants)
- FCRA ID (if receiving foreign donations)
- Self-certified copy of the certification previously obtained under 12A and 80G
- A note on the activities of the applicant.
Registration Under 12A:
As registration under Section 12A is for tax exemption, an NGO which has not registered under this cannot enjoy the privilege of tax exemption and would have to pay taxes just as any normal registered company would during the year.
How to Register Under Section 12A
All charitable trusts, societies, and Section 8 Companies, except private or family trusts, are eligible to register under Section 12A. But, before registration under 12A and 80G, an NGO has to first register with NGO Darpan, a register maintained by the Government of India, and then be registered under the Income Tax Act (This is not compulsory, it is an option available to trusts. A charitable organisation without Darpan can also apply for 12A and 80G) by following the steps mentioned below.
Step 1: An application has to be filed in Form 10A with the Commissioner of Income Tax – Exemption
Step 2: The required documents need to be submitted
Step 3: Once the documents are submitted, the application will be reviewed by the Commissioner, who might ask for additional information
Step 4: If everything is found to be satisfactory, the registration will be completed soon after, else it will be rejected.
Benefits:
- Provision to gain grants from governments and international organisations.
- Registration certificate serves as valid proof of the purpose of the NGO and its operations.
- All NGOs, be they trusts, companies, or societies, are eligible to avail exclusion from taxes
- FCRA registration benefits.
Registration Under 80G:
As per Section 80G of the Income Tax Act, if an NGO gets an 80G certification then it’s donors will be allowed to reduce the amount of donation made from its total Income (proportion of deduction allowed depends on the type of organisation), thus being incentivised to contribute some part of their disposable income towards good causes.
How to Register Under Section 80G
Any NGO that wants to register under Section 80G has to be duly registered and should be working specifically towards charitable objectives.
Step 1: An application has to be filed in Form 10A with the Commissioner of Income Tax – Exemption.
Step 2: Important documents are to be submitted
Step 3: Upon submission, the documents would be reviewed by the Commissioner. If required, he may ask for additional documents or information and the same have to be provided within the timeframe to avoid rejection
Benefits:
- 80G certification enhances the prospects and credibility of any organisation
- Donors reap the benefits of less taxable incomes
- Possibility of attracting more donors
- Eligibility to get government funds
- NGO owners can seek foreign contributions without many hassles
New terms of Registration and Re-registration under Section 80G and 12A
- Newly established trusts applying for income tax registration will be given provisional registration for three years. It becomes due for renewal either upon commencement of activities or upon completion of 3 years.
- For Re-Registration, the tenure will be revalidated by income tax authorities for a period of 5 years and renewal will fall due upon completion of 5 years.
Introduction
The NGO Darpan is a service provided by NITI Aayog that allows VOs (village organisations) and NGOs (non-government organisations) to be eligible for new government schemes and grants. This platform works with the NIC and NITI Aayog to strengthen the relationship between the government and non-profit organisations.
Furthermore, completing the NGO Darpan registration process provides greater responsibility and credibility to non-profit organisations. The portal has evolved and fully matured into an e-governance application that helps create a more transparent and healthy relationship between NGOs and the government. Apart from that, any NGO/VO registered as a society/trust/private non-profit under Section 25 of the Companies Act, 2013 or 1956 may apply for NGO Darpan registration.
Checklist
The organisation should be registered as Section 8 company, public charitable trust, or society.
Time Taken:
NGO Darpan is usually registered within 1 week from the date of submission of documents. In case there is objection raised, that may lead to delays.
Eligibility:
Any VO/NGO registered as a trust/society/private limited nonprofit company under Section-25 Company of the Indian Companies Act, 1956 is eligible to register under NGO Darpan.
Documents Required
- Copy of the registration certificate as a PDF or JPG
- Pan Card of NGO
- PAN and Aadhaar card copies of 3 members in the executive committee
- Name of NGO/VO
- NGO registration online address
- Registration number
- Date of registration
- Details of three members who are on the executive committee
- Details about funding from the government and chief area of working
NGO Darpan Registration – How to Register?
The government now requires NGOs and VOs to complete their Darpan registration online. To be eligible for FCRA registration and to apply for other government grants, the NGOs will need the NGO certificate or a unique ID. Here’s a quick overview of the NGO Darpan procedure.
Step 1: Visit the NGO Darpan’s official website
Step 2: Click on the ‘sign up’ button and create a user ID and password
Step 3: Then, select registration and fill out all of the necessary information about your NGO
Step 4: During this step, you will be required to provide basic contact information as well as information about your PAN card
Step 5: Once you receive OTP on your registered mobile number, you can use it for verification and password generation
Step 6: Log in using and choose the appropriate industry, fill in the achievements section and enter the address
Step 7: Finally, click on the ‘submit’ button.
Benefits
1. Assists NGOs and other VOs in interacting and engaging with government departments
2. Obtain a unique ID to help the NGO’s credibility and goodwil
3. Department and Ministry websites collaborate with NGO Darpan to share critical information
4. Up-to-date information on new schemes, projects, and the status of previous initiatives
5. Contributes to the creation of a database or repository of information about VOs/NGOs.
How It Works
Consultation
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Strategize
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Take Action
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