Complications in NGO Compliance? No More!
NGO compliance refers to the adherence to laws, regulations, and standards set by governments and other organisations that govern the operations and activities of NGOs.
Overview of NGO Darpan Registration
NGO Darpan is a portal operated by the Ministry of Rural Development, Government of India, for the registration and reporting of non-governmental organisations (NGOs) that receive funding from the government.
The portal provides a platform for NGOs to register and update their information and file reports on the utilisation of funds and the activities they have undertaken. If you are an NGO seeking to register with NGO Darpan, you must first ensure that your organisation meets the eligibility criteria set by the government.
This includes being a non-profit organisation working in rural development or poverty alleviation, among others. You can find more information about the eligibility criteria and the registration process on the NGO Darpan portal. Furthermore, completing NGO Darpan Registration is mandatory to possess any credibility as a non-profit organisation.
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 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 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.
The overall process may take up to three months, and the application shall be made within 1 week from the documents' submission date. 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.
CSR-1 registration is a process that non-governmental organisations (NGOs) in India must undergo to receive corporate social responsibility (CSR) funding from companies. CSR funding is a requirement for companies with a net worth of over ₹500 crores, a turnover of over ₹1,000 crores, or a net profit of over ₹5 crores
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. The MCA will review the application and may request additional documentation or clarification. If the application is approved, the NGO will receive a CSR-1 registration certificate, which allows them to receive CSR funding from companies.
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. CSR-1 registration is usually done within one week of the submission of all documents.
Section 8 Companies Annual Compliances
Section 8 companies, also known as non-profit organisations, are required to comply with certain annual compliances to maintain their status as a charitable organisation.
If you are a Section 8 company, you can opt for our annual compliance package designed specifically for Section 8 companies. The preliminary list of compliance tasks that are required and will be done for you under the package are listed below:
- 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.
We have a team of expert lawyers and chartered accountants who will completely take care of the NGO registration process. We will set up a call with you and explain the nuances of NGO registration. We will also file the CSR-1 registration on behalf of your organisation. Our process is completely transparent, and you will get timely updates from us. You can get assistance from our team of experts if you have any questions during the registration process. We provide legal services at an affordable price in a hassle-free way.
FAQs on Complications in NGO Compliance
- One common complication is navigating complex legal and regulatory requirements, such as tax laws and reporting requirements
- Another complication is ensuring that donations are used for their intended purposes and not misused or diverted for personal gain.
To ensure compliance with financial regulations, NGOs should establish clear financial policies and procedures, ensure proper documentation and record-keeping, and conduct regular financial audits to ensure that all financial transactions are transparent and properly accounted for.
The consequences of non-compliance for NGOs can be severe, including financial penalties, damage to reputation and credibility, and legal consequences for individuals involved in non-compliant activities. Non-compliance can also undermine the effectiveness and impact of an NGO's work and potentially harm the individuals and communities the organisation is trying to serve.
NGOs can mitigate the risks of non-compliance by implementing effective policies and procedures, training staff and volunteers on compliance issues, and conducting regular audits and reviews to ensure that all activities comply with relevant laws and regulations. It is also important for NGOs to be transparent and accountable in their operations and to actively seek out guidance and support from legal and compliance professionals when needed.
Yes, non-compliance can result in legal consequences for NGOs, such as fines, legal action, or loss of funding. NGOs need to prioritise compliance to avoid any negative consequences.
Why CA Desk?
CA Desk 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
- Cadeskindia has the experience of working with thousands of NGOs and understands the needs of such organisations
- Your information is always safe with us.