All posts by Uma Nathan

Everything You Need to Know Before You Fill an NGO Online Registration Form

An NGO is a non-governmental organisation that aims to promote the happiness, wellbeing and comfort of the people of a society. Such societies are not dependent on the government. Most often they work on:

  1. Curbing misuse of power
  2. Remove corruption
  3. Protect the environment
  4. Safeguard vulnerable groups
  5. Aid health of women and children

The Vital Need of NGOs

Because an NGO is separate from the support of the government, it can help democracy work better. Mostly, they do so in two ways:

  • Educate the public:

An NGO teaches the citizens of a nation on how a government works, what it is doing for them and how the work affects the people. They provide crucial information about people in power to the average person. Once the public is informed about politicians and companies, they can use the date to make better decisions.

  • A conduit of communication:

Though a democracy allows every person to write to their political representative about their views and opinions, it is not an effective way of communicating. NGOs, on the other hand, speak as the voice of hundreds of people. Therefore, when they weigh in on the decisions made by people in power, they are heard. These organisations are essentially a channel between the layman and the government. A few areas when NGOs can express the views of the public are:

  1. Nuclear energy
  2. International treaties
  3. Constitutional rights
  4. Protection of rights
  5. Fair worker pay
  6. Freedom of speech

Essentially, NGOs work to ensure that officials keep their legal obligations and protect democracy.

How Do NGOs Raise Money?

The first source of income, when an NGO is at the budding stage, is the donations they get from the citizens. But these are not enough to keep an agency running. Since they do not have the financial backup for promotions and advertisements, like other businesses, they look towards the government for funding. A government can offer money to NGOs for a plethora of reasons. A few of them are:

  1. For supplying legal advices to individuals who have been mistreated like in the case of an employer and employee.
  2. For representing special groups of people like those who are specially-abled. The government funds such an organisation because they want to guarantee that every class of citizen has a voice in policymaking. Furthermore, when officials back up such agencies, they get ready data on the opinions and expertise of this segment of individuals which can be used to make better laws.
  3. For keeping a careful eye and oversight on the government itself. These NGOs perform the vital task of making certain that the present government fulfils the promises they made and uphold all laws. It may seem like a counterintuitive reason to fund an NGO, but it is one of the most crucial. People in power have the tendency to misuse it. When there is a body of people checking on each decision you make, the temptation to abuse power is reduced.

When a government funds an NGO, it does so through a third party. This is imperative because giving direct money to an agency can equate to complete control over their decisions. Whereas, an independent body uses impartial criteria to decide who receives the donations.

How and Where to Register an NGO?

There are departments and officers allocated within a government that deal with registrations of NGOs. At present, there is also a society registration online process for which one can opt. Before registration can be done, one has to decide the type of agency it will be:

  1. non-profit organization
  2. voluntary organization
  3. people’s organization

Once the decision is made, the submission of required documents takes place. These would include:

  1. Information on the NGO/NPO Board
  2. The mission statement
  3. Memorandum of Association or Bye-laws
  4. Programmes and projects information
  5. Staff members details
  6. Funding sources and pattern of income and expenditure
  7. report of annual activities such as financial and audit reports
  8. letters of support (references)

The Basic Steps of Running an NGO

After NGO registration fees has been paid and the government recognises the agency, it is time to operate it. Majority of such organisations work on a set framework of five steps:

  1. Get funds from national or international resources to implement the project in the pipe-works.
  2. Hire the correct people to carry out the plan and pay them the required salary.
  3. Attend meetings held by governments and bodies like the Un as a representative of the public.
  4. Sell a product or service or publish works. It is to be noted that this is not done for-profit but to gain some capital to keep the NGO operational.
  5. Leverage all tax-breaks and support the government offers to keep the agency functioning.

Registering an NGO is a massive responsibility, as will be apparent from the information in the article. It is akin to starting a viable commercial trade. There are obligations that need to be fulfilled like finding an office space, creating detail reports of financial records and reporting to the local government with the correct documentation.

The only way to ensure that the registration procedure goes seamlessly is to employ a well-known Tax return filing company like VakilSearch. Their years of experience in the area and know-how will is precisely what is need to get the non-profit organisation up and running in no time. The brains behind the company offer a comprehensive package for registration. Swing by their site to get more information on how to register an NGO or give them a call to start the process now!

Article Source: http://EzineArticles.com/10095549

Selecting the Business Structure and the Process of Company Registration in India

To work legally, in India, every business has to register itself. The process of company registration starts by deciding the structure of it. By selecting the proper structure, a company can:

  1. Meet targets set easily.
  2. Operate at its highest efficiency.

A Business Structure – the Vital Necessity of it

The structure of a corporation determines two essential factors:

  1. The filing of Income Tax returns.
  2. The compliances that have to be adhered to.

To give a clearer picture take this example:

A business registered as a company has to file income tax returns along with annual returns to the Registrar of Companies. On the other hand, a firm registered as a sole proprietorship merely has to file income tax returns. Moreover, a company’s financial books need must be audited once a year which means extra expenses of:

  1. Auditors.
  2. Accountants.
  3. Tax filing authorities.

Another example of how a business composition can influence the company is:

Some structures like a PLC or LLP have the image of being investor-friendly because they are separate legal entities. It signifies that a business which hopes to get a monetary backup in the future would fare better as a PLC or LLP. If the owner chooses to register as a sole proprietor, he or she may face issues while looking for outside investors.

Essentially, it means consider many factors before electing the business structure because they impact the venture in the long run.

Four Primary Business Structures in India

The options an entrepreneur has when deciding the formation of business are:

  • OPC

One Person Company allots a single individual as the sole-proprietor of a firm. This type of structure is ideal for a company that has just one owner or promoter. It was introduced in 2013.

  • LLP

Limited Liability Partnership has more than one owner. Called partners, there is a restriction on the liability they have to bear. It is equal to the contribution they made. The LLP is a separate legal entity.

  • PLC

Private Limited Company is also a separate legal entity from its creator. The most common type of structure, it has directors and shareholders. The firm considers all of them as employees.

  • PLC

Public Limited Company also has a separate legal existence, and like an LLP, the liability of its members is restricted to their shares. This structure is formed by “a voluntary association of members.”

A Business Structure – How to Select the Right One While Applying a Company Registration Online

To pick the right choice of a business structure, ask the following questions.

  • What is the number of owners of the business?

An OPC is ideal when one individual is putting up the total initial capital. An LLP or a Private Ltd. Co. would be better suited for businesses that have 2 or more owners and are also looking for further investment by new entities.

  • Does the initial investment affect the structure?

Yes, it can influence the decision. For example, owners who don’t want a substantial investment at the starting can pick:

  1. A Partnership.
  2. Sole Proprietorship.
  3. A Hindu Undivided Family.

Entrepreneurs who are sure to recoup compliance and setup cost can choose:

  1. Private Limited Company.
  2. OPC.
  3. LLP.
  • How much liability can be borne?

Structures like PLC and LLP have a clause for restricted liability. It indicates that in case there is a default of loans the members will only repay the amount equal to:

  1. Their contribution.
  2. Value of shares held.

In other structures such as partnership, HUF, and sole-proprietor, the liability has no limit. They members or owners have to repay the entire cost which can put personal assets at risk.

  • What are the applicable tax rates of the business structures?

For an entity registered as a company or partnership, a flat tax rate of 30% is applicable. For HUF and sole-proprietorship, the slab rates applied are standard.

  • Will others be investing in the company?

Any business that hopes to get investments from venture capitalists or other parties should register it as a Private Limited company or LLP. They are measured as trusted entities and therefore easier to get financial backup.

The Process to Registering a New Business

A new company Registration or startup in India can now be easily registered easily online. The new process was incorporated by the Ministry of Corporate Affairs a few years back. The basic steps that need to be taken to register a business are:

  1. Get a Digital Signature Certificate, also known as DSC.
  2. Get a Director Identification Number, also called DIN.
  3. Accurately fill in the New User Registration form, also termed as eFrom.
  4. Submit the eForm.

The company is now registered and ready to work in India legally.

It is apparent that to run a legitimate business in the country registering it is mandatory. While the process has been significantly simplified in recent times, it is something that has no scope for errors.

Therefore, it stands to reason that professionals like VakilSearch would come in handy while registering a company. They are well-known NGO registration online service providers, who also have experts in setting up a business entity. They provide step-by-step guidance in every category of business structure registration. VakilSearch also aids in procuring the PAN and tax return filing of a company.

Furthermore, all of it can be done online without the need of visiting a brick and mortar place. Swing by their website to get more information on how they can get a business its legal license. You can also call them and set up a free first consultation!