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Compliances For Ngo

Compliances For NGO :


The word NGO stands for Non-Government Organization or Non-voluntary Organization. These organizations work for welfare of the societies. The various types of the Non-Government Organization are society, trade union, trust co-operative society and section 8 companies. State and Central government agencies gave regulatory authority over non-profit organizations.

The term NGO (Non-Government Organization) cover all legal entities that look for philanthropic and charitable funds and utilize them towards the development of the society without the motive to earn profit from it or use the profit from the business of the NGO and utilise the same in the execution of its objects.

Different types of NGO

These are the following different types of NGO in India:

  • Trust:

It is a public charitable institution registered under the Charity Commissioner’s office having jurisdiction all over the state. Maharashtra has adopted the Bombay Public Trust Act, 1950, which has become a model for more other states. The law that regulates all trusts are known as Indian Trusts Act, 1882.

  • Society:

As per Societies Registration Act, 1860, states have adopted their version from the model Societies Act, 1860.. It has broad membership, which elects a governing body periodically for the management of affairs of the society. The body is accountable to all the members. There are different types of societies that may be registered under the Act.

  • Company:

Companies Act, 2013  allows “Section 8 companies” to be formed. According to the Act, Section 8 Companies are those which are formed for the purpose of art, charity, religion, and other useful objects. Internal governance of Section 8 Company is as same as society. The members of the committee are elected by the members of the Charitable Company. A section 8 company can be dissolved. The registration process takes time and it requires the memorandum of association and articles of association that has to be submitted with the ROC.

  • Trade Union:

Under Trade Union Act, 1926, a Trade Union is defined as temporary or permanent combination formed to regulate and control the relations between employers and employees.

  • Multi-state co-operative societies:

The Multi-State Co-operative Societies Act, 2002 has replaced the previous Act of 1984. The Act provides compliance for both primary and federal co-operatives.

Legal compliances of NGO

These are various types of legal compliances of the NGO

Permanent Account Number (PAN) 

Permanent Account Number (PAN) is a unique ten-character alphanumeric identification number issued by the Income Tax Department of India. The PAN card number is used as the national identification number. The tenth character of a PAN card number is an alphabetic check digit.

  • Tax Deduction Number (TAN)

Tax Deduction and Collection Account Number (TAN) is a unique ten-character alphanumeric identification number issued to entities responsible for deducting or collecting taxes on behalf of the Income Tax Department in India. It is primarily used for tracking tax deducted at source (TDS) and tax collected at source (TCS) by organizations.

The TAN number is required at the following places-

  1. Return filled in respect of Tax Deducted at Source (TDS).
  2. A certificate is issued against the tax deducted.
  3. Challan deposit the tax so deducted.
  4. Section 12A registration

For getting some benefits of taxation, the registration of NGOs under Section 12A is mandatory under the Legal Compliances for NGOs. On the contrary, section 12A certificate is not an obligatory registration. The main reason for getting this registration under section 12A is to get the benefit of exemption if all the rules and regulations are fulfilled from the Income Tax on the Income/revenue (Legal Compliances for NGOs).

  • Section 80G registration:

The registration under this section is not mandatory under the Legal Compliances for NGOs. However, to get the advantage of ‘50% or 100%’ exemption over the donations to the donors, it is needed to get the registration under section 80G of Income Tax Act. It gave huge benefit to NGOs to raise funds.

  • FCRA registration under Income Tax Act:

Once the procedure of registration is done, there will be an opportunities to receive Foreign Funds for the objective of NGO. NGOs cannot get any type of foreign donation or funds without FCRA registration. It depends upon the type of registration and its legal compliances for applying FCRA registration.

  • Goods and Service Tax (GST) registration:

NGO has to firstly apply for the GST registration as a Legal Compliance if the gross turnover exceeds the basic exemption limit of GST and if an NGO is providing services such as research activity or consultancy work etc.


The information have mentioned above are the details of Legal Compliances for NGO in India and the various advantages of it. At company suggestion, our experts will solve your all queries regarding NGO registration and its legal compliances.

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