NGO compliance involves regular filings, audits, and reporting, which can be time-consuming, especially for smaller NGOs that may not have dedicated legal or accounting staff.
Need NGO Compliances? We are a perfect match.
NGO compliance in India involves adhering to legal and regulatory requirements, including registration, tax obligations, financial reporting, and FCRA compliance (if receiving foreign donations), ensuring transparency and accountability.
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Process of NGO Compliance
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📞 Get in Touch with Us
Call or WhatsApp us for a free compliance consultation. We assess your NGO type, structure, and applicable laws (Income Tax Act, Companies Act, FCRA, Trust Act, etc.).
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📄 Document Collection
We collect governing documents (Trust Deed, MOA/AOA, Registration Certificates), PAN, 12A/80G certificates, FCRA details (if applicable), financials, and activity reports.
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💳 Fee Payment
Pay our professional charges securely via UPI, bank transfer, or online payment link, based on the scope and type of compliance support required.
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📊 Accounts Finalisation & Audit Coordination
We help prepare and finalise books of accounts, assist with NGO-specific accounting standards, and coordinate with your auditor for timely audit completion.
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📝 ITR Filing & 12A/80G Compliance
We file your Income Tax Return (ITR-7), maintain 12A/80G validity, file Form 10B or 10BB audit reports, and ensure compliance with Section 11 & 12 provisions.
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🏛️ MCA Compliance for Section 8 Companies
For Section 8 Companies, we handle ROC filings, Form AOC-4, MGT-7, and all MCA annual returns.
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🌍 FCRA Compliance (If Applicable)
For FCRA-registered NGOs, we handle Form FC-4, banking compliance, renewals, foreign contribution declarations, and ensure FCRA rules are strictly followed.
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📤 Activity Report Filing & State Reporting
We help draft annual Activity Reports, maintain donor registers, and assist in State-level compliance filings for societies and trusts (if required).
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🔧 Post-Compliance Support
We assist with renewals, 12AB revalidation, 80G extension, FCRA amendments, and provide regular reminders and updates to keep your NGO always compliant.
Documents Required for NGO Compliance
Trust Registration
Trust deed, address proof of the registered office, PAN of the Trust.
Society Registration
Memorandum of Association (MOA), Rules & Regulations, and address proof.
Section 8 Company Registration
Memorandum of Association (MOA), Articles of Association (AOA), and address proof.
PAN Card
PAN for the NGO and for the directors/trustees.
12A Application
Application form for 12A, financial statements for the last 3 years, details of the NGO’s objectives and activities.
80G Application
Application form for 80G, PAN, financial records, and documentation proving the non-profit nature of the NGO.
Audit Report
Audited financial statements by a Chartered Accountant.
FCRA Registration
FCRA application, details of foreign donations received (if applicable).
CSR Registration
(for receiving corporate donations under CSR rules)Advantages of NGO Compliances
Legal Recognition
Compliance ensures that the NGO is legally recognized as a charitable or non-profit organization, which can enhance its credibility and trust among donors, government bodies, and the public.
Tax Benefits
NGOs that comply with tax laws, such as registering under Section 12A and 80G of the Income Tax Act (in India), can avail of significant tax exemptions and offer tax deductions to donors.
Funding Opportunities
Proper compliance opens up the possibility of receiving funding from government grants, international donors, and other funding bodies that require NGOs to meet legal and financial reporting standards.
Access to CSR Funds
Many businesses that are required to spend a percentage of their profits on Corporate Social Responsibility (CSR) look for compliant NGOs to fund their projects.
Operational Transparency
By adhering to compliance standards, an NGO demonstrates transparency in its operations, which can increase donor confidence and attract more funding and support.
Public Trust
Compliant NGOs are more likely to gain the trust of the community, donors, and other stakeholders, improving their reputation and outreach.
Disadvantages of NGO Compliances
Complex and Time-Consuming
Cost of Compliance
There are costs associated with maintaining compliance, such as professional fees for legal advice, auditing, and filing fees for necessary registrations and returns.
Frequent Changes in Regulations
Regulations governing NGOs can change frequently, requiring the organization to stay updated on compliance matters, which can be an administrative burden.
Restrictions on Activities
NGOs that enjoy tax exemptions must operate within the framework set by the government, which could impose restrictions on certain activities, such as political lobbying or commercial ventures.
Mandatory Reporting
NGOs need to submit detailed annual reports, which can be intrusive or burdensome, especially for those with limited resources.
Reputational Damage
Non-compliance can damage an NGO’s reputation and erode public trust, making it harder to attract donors and partners.
Requirements for NGO Compliance
Legal Structure
The NGO must be registered as a trust, society, or section 8 company (non-profit company) under Indian laws or equivalent laws in your country.
PAN (Permanent Account Number)
Like any other entity, an NGO must obtain a PAN for tax purposes.
12A Registration
To avail tax exemptions on income, an NGO must apply for and obtain 12A registration under the Income Tax Act.
80G Registration
To offer tax deductions to donors for contributions, the NGO must apply for 80G registration.
Audit
NGOs are required to conduct an annual audit by a Chartered Accountant (CA) to ensure that all financial records are accurate and compliant with laws.
Annual Filing
NGOs need to file annual returns with the government, including financial statements and auditor reports.
FCRA Registration (if applicable)
If the NGO intends to receive foreign donations, it must register under the Foreign Contribution Regulation Act (FCRA) with the Ministry of Home Affairs.
Regular Board Meetings
NGOs are required to hold board meetings at regular intervals and maintain records of these meetings.
Statutory Register Maintenance
The NGO must maintain statutory registers like the register of members, register of donations, and financial records.
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- Registration
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- Statutory Audit
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- Perpetual Existence
- Foreign Ownership
- Taxation Liability
- Compliance Requirement
Frequently Asked Questions (FAQs) about NGO Compliance
What is the difference between 12A and 80G registration?
12A registration allows an NGO to claim tax exemptions on its income, while 80G registration allows donors to claim a tax deduction on donations made to the NGO.
Is it mandatory for an NGO to obtain FCRA registration?
If the NGO plans to receive foreign donations, then FCRA registration is mandatory. Otherwise, it’s not required.
Can an NGO conduct business activities?
An NGO can engage in business activities, but the income must be used exclusively for charitable purposes. Profits cannot be distributed among members.
How often do NGOs need to file returns?
NGOs must file annual returns with the relevant authorities (Registrar of Societies, Charity Commissioner, or Ministry of Corporate Affairs) and also file income tax returns every year.
What happens if an NGO does not comply with regulations?
Non-compliance can lead to penalties, loss of tax exemptions, or even the cancellation of the NGO’s registration. In extreme cases, the NGO could be shut down.
Can an NGO change its objectives or activities?
Yes, but any major changes to the objectives or activities require approval from the relevant authority (Registrar of Societies or the Ministry of Corporate Affairs) and may require the amendment of the governing documents (like MOA or Rules).
Are there any annual fees for maintaining NGO compliance?
Yes, NGOs may need to pay fees for filing annual returns, audits, and for renewing registrations like 12A, 80G, and FCRA.
What is the role of the Board of Directors/Trustees in compliance?
The Board of Directors or Trustees is responsible for overseeing compliance with legal and regulatory requirements, ensuring transparency, and ensuring that funds are used for the intended charitable purposes.
Related business registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an advisor to find out registrations your business may require post registration.
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