#1  
1st August 2014, 05:21 PM
Unregistered
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Can a NGO be registered as per Company Act 25? What type of support we can expect from government?


We want register ngo ( crime branch of india ) as a company act 25
we will get which type of support by the government? Can register a ngo company act25




  #2  
7th April 2023, 05:09 AM
SidhuMoosewala
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Join Date: Feb 2023
Location: Chandigarh
Posts: 246
Default Re: Can a NGO be registered as per Company Act 25? What type of support we can expect from government?

Registering an NGO under Section 25 of the Companies Act, 1956 can provide some benefits from the government. Here are some key points regarding this:

An NGO registered under Section 25 essentially obtains legal status as a not-for-profit company. This allows it to open bank accounts, enter into contracts, acquire and transfer property, sue or be sued in courts, etc. It provides more financial flexibility and accountability.

NGOs registered under Section 25 can receive certain tax benefits like exemption under Section 11 of the Income Tax Act or reduced applicability of taxes on some income. Donations to such NGOs can also qualify for tax deductions under Section 80G of the Income Tax Act. However, the NGO has to meet criteria prescribed for Section 11 exemption and 80G registration. Not all NGOs get this benefit automatically upon registration.

Registered NGOs can access funding opportunities from the government like grants, endowments, project-based funding, CSR funds, etc. Some ministries and government departments provide grants for NGOs working in specified development sectors or themes. Prior registration will be required to apply for such funds.

The government may provide certain operational or infrastructure support to Section 25 NGOs based on the nature of work, target beneficiaries, key objectives, impact, etc. This could include things like subsidized office space, equipment, technical resources, volunteer participation, promotions, etc. But there is no automatic entitlement to such support. NGOs will have to propose reasonable support requirements along with justifications to related government ministries or agencies.

Registered NGOs may get preferential consideration during government empanelment or partnerships. Some NGO partnership models provide funds, resources and promotions to selected NGOs. Prior registration will strengthen an NGO's case for partnerships.

However, it is not mandatory for an NGO to register under Section 25 of Companies Act to receive any government support. Unregistered NGOs can also apply for certain grants, funds and partnerships depending on their work and credibility. Section 25 registration basically provides additional benefits of a formal legal status and structure. It also ensures more transparency, accountability and legitimacy which the government prefers to associate with.

In summary, yes an NGO can register as a company under Section 25 of Companies Act, 1956 which may provide some advantages in obtaining government support and benefits. But there are no guarantees, and each NGO will have to make reasonable proposals and where possible, forge strategic partnerships to access opportunities based on their interests and work.
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