NGO Registration Pasan
NGO Registration Process in India A Comprehensive Guide
Non-Governmental Organizations (NGOs) play a critical role in the development and welfare of societies. They work towards the betterment of the community, advocating for social justice, environmental conservation, healthcare, education, and various other social causes. In India, NGOs are required to register under the laws of the country to operate legally and effectively. One such registration process is through the Public Affairs and Service Act, 2020 (PASAN). In this comprehensive guide, we will take a closer look at the NGO registration process under PASAN and the essential considerations for NGOs seeking to register in India.
Understanding PASAN and Its Importance
The PASAN Act, which came into effect in 2020, is a significant development in the legal framework for NGOs in India. It aims to regulate and streamline the functioning of NGOs, ensuring transparency, accountability, and compliance with the law. The Act specifies the obligations and responsibilities of NGOs, including registration requirements, reporting standards, and financial transparency.
The Importance of NGO Registration
Registering as an NGO under the PASAN Act is crucial for several reasons. Firstly, registration provides legal recognition and credibility to the organization, making it eligible for various government schemes, grants, and collaborations. Secondly, it establishes the NGO’s legitimacy and accountability, creating trust and confidence among donors, partners, and beneficiaries. Lastly, registration under PASAN ensures compliance with the law, safeguarding the organization from potential legal issues and liabilities.
NGO Registration Process under PASAN
The registration process under PASAN involves several steps and requirements. It is essential for NGOs to understand and fulfill these criteria to obtain legal recognition and operate effectively. The following is a comprehensive guide to the NGO registration process under PASAN in India:
Step 1: Preparing the Necessary Documents
Before initiating the registration process, NGOs must gather and organize the required documents. These include:
– Memorandum and Articles of Association
– Board of Directors/Trustees documentation
– A copy of the NGO’s annual report
– Financial statements and audit reports
– Registration certificate (if applicable)
– Project proposal and work plan
– Bank account details
– Address proof and PAN card of the organization
Step 2: Choosing the Appropriate Registration Type
Under PASAN, NGOs can register as a Trust, Society, or Section 8 Company. Each type of registration has its specific requirements and benefits. NGOs must determine the most suitable registration type based on their mission, scope of operations, and long-term objectives.
– Trust: To register as a trust, NGOs must create a trust deed outlining the organization’s objectives, governing regulations, and the role of trustees. The trust deed must be signed and notarized by the trustees and submitted to the local registrar’s office.
– Society: NGOs opting for society registration must draft a memorandum of association and rules and regulations of the society. These documents should detail the organization’s objectives, membership criteria, and governing structure. Once prepared, the documents must be submitted to the registrar of societies in the relevant state.
– Section 8 Company: NGOs seeking to register as a Section 8 company must apply for a license under the Companies Act, 2013. The application must include the organization’s memorandum and articles of association, along with the prescribed forms and fees.
Step 3: Application Submission and Verification
Once all the necessary documents are in order, NGOs can proceed with submitting their registration application to the respective registrar’s office. The application is then scrutinized, and the documents are verified to ensure compliance with the PASAN Act. It is essential for NGOs to accurately and comprehensively provide all the required information to expedite the verification process.
Step 4: Registration Certificate Issuance
Upon successful verification and compliance, the registrar’s office issues a registration certificate to the NGO. This certificate serves as proof of the organization’s legal recognition and authorization to operate as an NGO under the provisions of PASAN. The registration certificate is a vital document that NGOs must maintain and present when engaging in partnerships, seeking funding, or conducting activities.
Ongoing Compliance Requirements
After obtaining the registration certificate, NGOs must adhere to the ongoing compliance requirements set forth by PASAN. These include:
– Annual Reporting: NGOs must submit annual reports, financial statements, and audit reports to the registrar’s office. Compliance with reporting standards is essential to maintain transparency and accountability.
– Financial Disclosure: NGOs are required to disclose their sources of funding, expenditures, and utilization of funds as per PASAN’s financial transparency provisions. This information helps ensure the proper utilization of resources and prevent fraudulent activities.
– Governance and Operations: NGOs must adhere to the governance and operational standards specified in the PASAN Act. This includes maintaining a board of trustees/directors, following ethical practices, and complying with the laws governing the functioning of NGOs.
Conclusion
Registering as an NGO under PASAN in India is a fundamental step towards establishing a credible and legitimate organization. It provides the legal recognition and framework necessary to operate effectively, engage in social initiatives, and build partnerships. By understanding the registration process and compliance requirements, NGOs can navigate the legal landscape and contribute meaningfully to the development and welfare of communities in India. It is imperative for NGOs to prioritize transparency, accountability, and compliance with the law to gain the trust of stakeholders and make a lasting impact.,
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This article is only published for informational purposes. Please consult your Chartered Accountant or Financial Advisor before making any important financial decisions. This article has been written by Chartered Accountant Avik Kedia.The images displayed here have been generated using openai chatgpt or google gemini or microsoft bing copilot or google bard or Twitter Grok Ai other X AI artificial intelligence ai tools and plugins and scripts and websites and applications. You may download and use these images for your personal projects at your own discretion.
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NGO Registration Pasan
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