Setting up an NGO in India can open the door to a huge number of possibilities regarding tax benefits, exemptions and deductions! You can pick and choose from a variety of options like trusts, societies, and section 8 companies.
Not all companies are for-profit entities. You can establish a non-profit company under Section 8 of the Companies Act.
Societies are the simplest form of NGOs formed when 7 or more individuals come on board with the objective of promoting social welfare.
If you have a property or an asset which can be used for social purposes, you lend it to a Trustee under the framework of a Trust NGO.
Both NGOs and its donors can seek innumerable tax exemptions and deductions by obtaining 12A & 80G registrations under Income Tax Act.
You can register your NGO on the NITI Ayog-run NGO Darpan portal to stay updated about grants offered by different Government Ministries.
Your NGOs can also undertake CSR activities on behalf of corporations, provided they have obtained CSR-1 registration from ROC.
NGOs can receive funds and donations from foreign individuals and entities, provided they have obtained an FCRA Certificate.