What is 12A Registration?
12A registration is a certification issued under the Income Tax Act that allows NGOs to claim tax exemption on surplus income. Without 12A registration, your NGO must pay tax on its income. Therefore, this registration directly helps you utilize maximum funds for social work instead of tax payments.
In addition, donors also prefer organizations that hold valid registrations. Although 12A and 80G serve different purposes, both strengthen your NGO’s credibility. I always recommend applying for 12A immediately after completing the legal formation of your NGO.
Procedure to Start a NGO Before 12A Registration
Before applying for 12A, you must complete the proper procedure to start a NGO. First, you need to decide the legal structure of your organization. Generally, you can register as a Trust, Society, or Section 8 Company.
1. Society Registration
If you choose Society Registration, you must draft a Memorandum of Association and Rules & Regulations. After that, you submit documents to the Registrar of Societies. Once approval is granted, your NGO becomes legally recognized.
2. Trust or Section 8 Company
Alternatively, you may register a Public Charitable Trust or a Section 8 Company. Each structure has its own compliance requirements. However, I help you select the best structure based on your goals and long-term vision.
Only after completing the legal formation can you apply for 12A.
Documents Required for 12A Registration
When I apply for 12A registration for my clients, I carefully prepare the following documents:
- Registration Certificate (Trust Deed / Society Registration Certificate)
- PAN Card of the NGO
- Memorandum of Association
- Bank Account Details
- Activity Report (if applicable)
- Details of Trustees or Governing Body
Furthermore, I ensure accuracy in documentation because even a small error can delay approval.
Step-by-Step Process of 12A Registration
I follow a structured and transparent process for 12A registration:
Step 1: Online Application
First, I filed Form 10A online through the Income Tax portal. Then, I attach all required documents in the prescribed format.
Step 2: Verification
After submission, the Income Tax Department reviews the application. Sometimes, authorities may request additional clarification. In such cases, I respond promptly and professionally.
Step 3: Approval
Once verification is complete, the department grants the 12A certificate. As a result, your NGO becomes eligible for income tax exemption benefits.
Therefore, with proper guidance, the process becomes smooth and hassle-free.
Why is 12A Registration Important ?
Many founders focus only on the procedure to start a NGO, but they ignore tax compliance. However, without 12A, your NGO cannot claim tax exemption benefits. Consequently, your funds may reduce due to tax liabilities.
Additionally, 12A registration increases transparency and credibility. Donors, CSR contributors, and funding agencies prefer legally compliant organizations. Thus, this registration supports long-term sustainability.
How Do I Help NGO Experts ?
At NGO Experts, I personally guide you through the entire journey—from Society Registration to successful 12A. First, I understand your mission and structure. Then, I prepare and review all documents carefully. Moreover, I track your application status and handle departmental queries efficiently.
Because of my experience in NGO compliance, I simplify legal complexities for you. As a result, you can focus entirely on your social mission while I manage the legal formalities.
Conclusion
If you plan to start a non-profit organization, you must complete the procedure to start a NGO correctly. After that, applying for 12A registration should be your next priority. Proper Society Registration or other legal formation lays the foundation, but 12A ensures financial efficiency.
Therefore, do not delay your tax compliance. Connect with NGO Experts today, and I will help you secure your 12A registration smoothly and professionally.
