NGO

NGO Organizational Structure & Section 8 Company Registration Process

calendar13 Oct, 2020
timeReading Time: 4 Minutes
NGO Organizational Structure & Section 8 Company Registration Process

NGO is a non-profit, private, and self-governing organization. The scope, size, history, goals, affiliations, and governance portray the character of each NGO. NGO across India play a vital role in the upliftment of the lower strata of society. Empowerment of weaker individuals and providing better support to needy ones is the primary goal of such an organization. NGO in India can be formed voluntarily but they are not permitted to pursue their business activities unless local authority allowed them to do so. And this is the reason why they need registration to operate seamlessly in India. In this blog, we will look into the NGO organizational structure and registration process. 

Detailed NGO Organizational Structure

Detailed NGO Organizational Structure

Outlines on Business Goal and Societal Protocol

NGOs working across India don’t have a general outline of the organizational structure due to diverse business goals and complex audience base. Though nearly all NGOs work towards the upliftment of the society, their working protocols and organizational hierarchy may differ to a significant extend.   

NGO’s top management comprises three entities – the board of directors (BOD), Executive Directors[1], and the General Assembly. While daily operations and management are controlled by the boards, the executive directors and the rest of the members look into other affairs of the company related to its growth and development.

A general assembly, on the other hand, is accountable for improving the image of the organization by imparting transparency within its structures and day to day operations. The assembly also strives to extend the footprint of the organization through fundraising activities and public relation. 

Staff members are responsible for ensuring the seamless functioning of day to day task. They are also held accountable for implementing the organization’s projects and programs. The executive director is the one who looks after ongoing projects. In general, the NGO’s staff members are grouped into: 

  • Publicity
  • Administration
  • Projects/programs 

The roles and responsibilities mentioned above may vary from company to company. 

Allocation of Duties in NGOs

The allocation of duties in NGOs is not confined around specific team members. For instance- the duties of public relations or project coordination can be handled by the same staff member. In the case of the newly established NGOs, where manpower is not adequate, the task related to planning, coordination, and implementation may be addressed by a single team member. NGO organizational structure is not as complex as multinational companies where authorities are delegated to numerous members due to large scope of operation.

Bylaws are required for the statutory registration of an NGO and can be revamped or altered with the permission of BODs and general assembly. 

Read our article:Guide on NGO Registration: Types and Benefits

NGO Registration Process U/s 8 of Companies Act, 2013

NGOs can be established as a Society, Trust, and Non-Profit Company (Section 8 Company). The registration process under section 8 of Companies Act, 2013

Step 1:

Before indulging with application process, it is smart to gather all the documentation required in the process of incorporation as it consume plenty of time.

Document list is as follow:

1. For application related to DSC, self attested copy of:

  • Photo Identification – DL/PAN/Voter ID.
  • Address Proof- Bank statement, Voter ID, Utility bill (not older than two months).
  • Applicant’s photograph (even soft copy will be sufficed)

2. For Name Availability

  • Proposed name of the company (it’s mandatory to use the term like Foundation or Association etc for Sec8 Company.)
  • Main Objects of the company.

3. For SPICE+ form– (Application for Certificate for Incorporation)

  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Subscribers’ PAN card to the memorandum
  • Identification proof and address of directors to the memorandum.
  • Rent deed of the registered office (notarized).
  • No Objection Certificate from owner where is the office is situated.
  • Utility bill of the registered office (should be the latest one)
  • Declaration from all the directors under form INC 15.
  • Declaration from the Chartered Accountant under form INC 14
  • Estimated expenditure and earnings for the next three years in the given format.

4. For AgilePro (Formats Attached)

  • Bank’s name, where the entity wishes to open the bank account.
  • Specimen Signature
  • Specimen Signature for Employees’ Provident Fund 
  • NO objection Certificate for opening an account in the bank.
  • Declaration of Authorized signatory for GSTN

Step 2:

1. Use the RUN utility for the Name availability.

2. Login to the website of MCA and select MCA services>RUN

3. Fill the online form and attach the object clause and submit. (Attach the detailed object clause)

Key takeaway: The approved name will remain valid for 20 days, so once the authority approves the name, SPICE + needs to fill within that time span.

Step 3:

Filling of Web Form Spice +

After the name approval, the SPICe forms will be available for further process. As per the recent changes in the incorporation procedures, pdf forms are substituted with the Web forms, which need to be filled on line for the purpose of affixing DSC.

Steps to fill the Web Form:

1. Head over to the MCA offices and completes the login formalities.

2. Next, select MCA services> Spice +> Existing Application

3. Fill up the form deliberately.

4. Attach the request documentations in the attachment section, each doc should be attested by the subscribers and must enclose place and date.

5. Submit the form.

6. In addition to the SPICE, also make sure to fill the Agile and INC9 file. (Note that INC 9 is an offline based form whereas Agile is a web form)

7. After submitting the form successfully, the download option shall be activated. All you need to download the verification form and affix DSC.

8. Submit all three forms as LINKED Forms at Ministry of Corporate Affairs Website, with the requested fees.

9. Upon approval of AGILE and SPICE, COI and license no shall be granted which will enclose Incorporation date, Company identification Number, TAN, and PAN of the company.

Conclusion

NGOs are the indispensable entities that ensure the well-being of the deprived section of the societies. But not all NGOs serve the common objective. Some NGOs focused on empowering the youth while some engaged in delivering basic amenities to underprivileged societies. Their goals could be different but their intention is more or less the same i.e. human welfare.

This is something that sets them apart from the rest of the organizational models. Registration helps these organizations to carry out their operation within the framework of the law which consequently improves their credibility over time. If you have a groundbreaking idea to support society in any way, you can turn that idea into reality with the help of NGO registration. Call the CorpBiz experts to avail NGO registration without any technical or legal hassles.

Read our article:An Outlook: Registering an NGO in India

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