Charges for NGO Registration in Delhi: Complete Breakdown with PayMy Tax

Non-Governmental Organizations (NGOs) play a vital role in addressing societal issues and promoting charitable work. To operate legally, NGOs need to be registered under various acts based on their purpose and structure. Understanding the charges for NGO registration in Delhi is critical for those looking to start an NGO. This comprehensive guide covers the types of NGOs, the registration process, and the associated costs. With PayMy Tax, you can streamline your registration process while ensuring all legal and financial aspects are handled professionally.

Types of NGOs in Delhi

Before we delve into the charges for NGO registration in Delhi, it’s essential to know the different types of NGOs that can be registered, as this affects the overall cost.

1. Trust

   • Purpose: Trusts are created for charitable, educational, or religious purposes.
   • Governing Law: Indian Trusts Act, 1882.
   • Registration Cost: Lower registration costs compared to other types of NGOs.
   • Key Requirement: Minimum of two trustees.

2. Society

   • Purpose: Societies are registered for the promotion of literature, science, fine arts, or charitable activities.
   • Governing Law: Societies Registration Act, 1860.
   • Registration Cost: Medium-level registration fees and requires a group of individuals (minimum of seven members).

3. Section 8 Company

   • Purpose: Companies registered under Section 8 of the Companies Act, 2013, aim to promote commerce, art, science, sports, education, research, social welfare, etc.
   • Governing Law: Companies Act, 2013.
   • Registration Cost: Highest charges for NGO registration in Delhi as compared to trusts and societies, but it provides more credibility and transparency.

Factors Affecting Charges for NGO Registration in Delhi

The charges for NGO registration in Delhi vary depending on several factors. Here’s a breakdown of what influences the cost:

1. Type of NGO

As discussed above, the charges for registering a trust, society, or Section 8 company are different. Trusts generally have lower registration fees, while Section 8 companies have more significant charges due to additional legal requirements.

2. Professional Fees

Many organizations opt to hire professional services such as PayMy Tax to handle the legal and documentation work. Professional charges vary based on the complexity of the registration process and the specific services provided, such as preparing the MOA (Memorandum of Association), AOA (Articles of Association), or drafting the trust deed.

3. Stamp Duty

Stamp duty is an essential component in the charges for NGO registration in Delhi. The cost differs depending on the type of NGO. Trusts require a trust deed to be prepared, and stamp duty varies based on the value of the property (if any) held by the trust.

4. Government Fees

Each type of NGO has specific government fees attached to its registration:

• Trust: Charges related to preparing and registering the trust deed.
• Society: Charges for filing with the Registrar of Societies.
• Section 8 Company: Government fees for company registration and obtaining a license under Section 8 of the Companies Act, 2013.

5. Document Preparation and Legal Work

Proper documentation is critical during the registration process. Charges related to the preparation of legal documents, including notarization and attestation, contribute to the overall cost.

Step-by-Step Breakdown of Charges for NGO Registration in Delhi

Let’s walk through the specific charges associated with each type of NGO registration in Delhi.

1. Charges for Trust Registration

Registering a trust in Delhi involves several steps and associated costs:

• Drafting the Trust Deed: A professionally drafted trust deed costs between ₹5,000 to ₹10,000.
• Stamp Duty: The stamp duty on trust registration varies from ₹500 to ₹1,000 depending on the state rules.
• Professional Fees: If you hire a consultant like PayMy Tax, the charges can range from ₹10,000 to ₹20,000 based on services offered.
• Total Cost: The overall charges for NGO registration in Delhi for a trust can range from ₹15,000 to ₹30,000.

2. Charges for Society Registration

The registration of a society in Delhi follows these steps:

• Name Reservation Fee: This fee is around ₹500 to ₹1,000.
• MOA & Rules Drafting: Professional fees for drafting the Memorandum of Association (MOA) and rules range from ₹7,500 to ₹15,000.
• Registration Fee: A fee of ₹2,000 to ₹5,000 is paid to the Registrar of Societies.
• Total Cost: The total charges for NGO registration in Delhi for a society range from ₹20,000 to ₹40,000.

3. Charges for Section 8 Company Registration

Registering a Section 8 company is more complex and thus incurs higher charges:

• Name Reservation Fee: A small fee of around ₹1,000 for reserving the company name.
• Professional Fees: The legal fees for drafting MOA, AOA, and the application for a Section 8 license are typically between ₹25,000 to ₹50,000.
• Government Fees: The fees for company incorporation range from ₹3,000 to ₹10,000.
• Stamp Duty: Additional stamp duty may apply, costing around ₹500 to ₹1,500.
• Total Cost: The overall charges for NGO registration in Delhi for a Section 8 company can range from ₹40,000 to ₹80,000.

Additional Costs for NGO Registration in Delhi

Apart from the basic registration charges, there are several other costs to consider:

1. Digital Signature Certificate (DSC)

For registering a Section 8 company, you will need a DSC for each director, costing around ₹1,000 to ₹1,500 per certificate.

2. Director Identification Number (DIN)

For a Section 8 company, each director must have a DIN, which costs around ₹500 to ₹1,000.

3. Annual Compliance Costs

Once your NGO is registered, maintaining compliance comes with its own set of charges. The annual compliance cost includes filing income tax returns, maintaining financial records, and other legal requirements.

Why Opt for Professional Services for NGO Registration?

Registering an NGO can be a complex process, requiring precise documentation, legal formalities, and compliance with government regulations. Opting for professional services like PayMy Tax can simplify the process. Here are the benefits of choosing a professional service provider:

• Expert Guidance: PayMy Tax offers expert consultation, ensuring that your NGO’s structure and documentation are legally sound.
• Hassle-Free Process: Professionals handle all paperwork and filing, saving you time and effort.
• Accuracy: With experience in NGO registration, PayMy Tax ensures that your application is error-free, reducing the risk of rejection.
• Cost Efficiency: Although professional services come at a cost, they can save you from future legal complications and penalties, making it a worthwhile investment.

Conclusion

Understanding the charges for NGO registration in Delhi is crucial for anyone planning to start a non-profit organization. Whether you opt for registering a trust, society, or Section 8 company, each comes with its own set of costs. From government fees and stamp duty to professional charges, these expenses vary based on the type and complexity of the NGO.

For those looking to streamline the registration process, professional services like PayMy Tax can be a valuable resource. By providing expert legal assistance, accurate documentation, and end-to-end registration services, PayMy Tax ensures a smooth and efficient NGO registration process.

By choosing PayMy Tax, you can focus on your organization’s mission while leaving the legal and financial intricacies to us. Get in touch with PayMy Tax today and take the first step towards building a legally compliant and impactful NGO in Delhi.