Can NGO do business?
What is an NGO and NPO? NGO registration process?
An NGO (non-government organization) or NPO (a non-profit organization) is an organization consisting of people, volunteers, institutions, social workers, community, and citizens working in a social voluntary organizations for the welfare of society.
NGOs are private agencies that work with a cooperative objective to support local, national, or international development by raising policy awareness, influencing policy policies.
If any person wants to work for bringing some social change or for the welfare of society, they can work with an NGO without registration.
An NGO can be identified in its registered form and once it is registered with all the authorities of the Government of India, it can get all kinds of assistance from the government, including financial support for the organization. Is because they are working for the welfare of society.
The main objective of these organizations is to work for the welfare of society and to bring positive social change when needed instead of making profits.
What are the benefits of running an NGO?
Exempt from paying income and other government taxes. If you have registered your organization under the Societies Act, 1860, then you are not required to pay income tax as you are working for social welfare. You are also exempt to pay entertainment and service tax when registered under the Trust Act.
Separate legal entity
The government has a separate legal entity like its other private and public business forms. Money from the government and other
private agencies
Once you have done your NGO online registration, you will get financial support from the government and other private agencies, which want to contribute money for the welfare of society. If you have registered your company under the Trust Act, 1882, you will also get land from the government for your actions.
Good staff for your organization
Employees or volunteers who want to work for your organization can contribute their full efforts to your organization because they are working for a wholeheartedly good cause rather than focusing on their pay factor.
No minimum capital requirements
There is no limit to starting your NGO. Once you start working for society, the government or other private institutions will contribute money to the organization.
Ease of transferring ownership or title
Once you have registered yourself under Section 8 Companies registration Act, 2013. Then you can easily transfer your ownership to another without any hindrance.
Long-lasting organization
This is an important benefit of running an NGO. If you are serving society, society will also cooperate to serve you better in the future, which ensures the long-term operation of the organization.
National and International Cooperation
Once you start running as an NGO, your efforts for the welfare and change of society will invite national and international NGOs to collaborate with your organizations. In some cases, international companies also invest in non-governmental organizations that work to help the poor or change society.
Final words
Therefore, it would be wrong if we say that NGO is not a profitable business. If we work for the welfare of poor people or to bring positive changes in society, then we will surely get huge benefits from society in the form of tax exemption from government, money, land, etc. as well as their support in activities.
The only thing you need to keep in mind while registering your NGO is the purpose of starting the organization. You should ensure that your objective is to work for the welfare of backward communities and those needs.
For any query for NGO registration, please contact our professional team of Chartered Munshi as an NGO consultant.
