Starting an NGO requires following a legal process. One important step is 12A registration. It helps NGOs get tax exemption. If you run a nonprofit, this registration is essential. I assist NGOs through my legal company, NGO Experts. We handle 12A registration, 80G certificate, and complete NGO registration.
Introduction to 12A Registration
12A registration is a process under the Income Tax Act. It allows NGOs to claim tax exemption on their income. Without this registration, all donations or grants received by an NGO are taxable.
I always advise NGOs to apply for 12A registration at the beginning of their operations. This ensures that the income used for charitable purposes remains exempt.
Through my work with NGO Experts, I’ve guided many organizations in applying for 12A registration successfully.
Why 12A Registration is Important
This registration provides a strong legal standing. It proves the nonprofit nature of the organization. More importantly, it helps NGOs save money. The saved funds can be used to expand welfare activities.
When I help clients with NGO registration, I include 12A registration in the checklist. It’s one of the first things I recommend. It builds trust with donors and improves credibility.
Without 12A registration, donors also lose tax benefits. This makes it harder to raise funds.
Difference Between 12A and 80G Certificate
While both are important, they serve different purposes.
12A registration is for the NGO. It gives tax exemption to the organization.
The 80G certificate is for donors. It allows them to claim deductions on the amount they donate.
At NGO Experts, we handle both processes. I ensure that clients understand the importance of these certificates. When you complete NGO registration with our company, I guide you on the steps for both 12A and 80G.
This combination attracts more donors and reduces the financial burden of taxes.
Process of 12A Registration
Getting 12A registration requires proper documentation and accuracy. I have seen many applications rejected due to errors. That’s why it’s important to follow the process step-by-step.
Here’s how I guide my clients at NGO Experts:
- Prepare the NGO documents.
- Submit Form 10A to the Income Tax Department.
- Attach PAN, trust deed, or society memorandum.
- Upload financial records.
- Complete any query or hearing if asked.
Once approved, the NGO receives a registration certificate. This document is valid for five years. I help clients keep track of the expiry and assist in renewals too.
Eligibility Criteria for 12A Registration
Not every organization is eligible. The NGO must be formed as a:
- Trust
- Society
- Section 8 Company
It should work for charitable or religious purposes. I review the objectives before applying. At NGO Experts, we ensure that the NGO’s work matches the rules set by law.
During NGO registration, I always ask my clients to define their purpose clearly. This helps during 12A registration and later while applying for the 80G certificate.
How 80G Certificate Helps Donors
Donors are more willing to give when they receive tax benefits. The 80G certificate allows individuals or companies to claim deductions under Section 80G of the Income Tax Act.
I have worked with many clients who saw an increase in donations after getting this certificate. It makes your NGO more attractive to corporations and CSR funding.
When I handle 80G certificate applications, I make sure that:
- The NGO has 12A registration.
- There is proper financial transparency.
- All documents are up to date.
Common Mistakes to Avoid
I often see NGOs make mistakes during the registration process. These include:
- Not having proper financial records
- Skipping NGO registration before applying
- Confusing 12A with 80G
- Submitting incorrect forms
At NGO Experts, I prevent these errors. I review everything before submission. It saves time and avoids delays.
Why Choose NGO Experts for Legal Services
My company, NGO Experts, specializes in legal support for NGOs. We offer NGO registration, 12A registration, and 80G certificate application. I personally assist in every step.
We understand the law. We understand the challenges faced by NGOs. I offer clear guidance and quick processing.
Our team is well-trained. We ensure your application is accurate and complete.
Whether you are just starting or want to regularize your existing NGO, we can help. Our goal is to make the legal process easy for you.
Conclusion
If you run a nonprofit or want to start one, 12A registration is the first legal step. It gives your NGO tax benefits and builds trust. Along with an 80G certificate, it helps attract donors.
I, through NGO Experts, offer expert help in this process. From NGO registration to legal compliance, I provide all legal support under one roof.
Take the right step with the right legal help. Register your NGO properly and secure your 12A registration today.
