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Shalini Singh
| Updated: 18 Nov, 2019 | Category: NGO

NGO Registration – Step by Step Procedure

NGO Registration

Stepping forward to help others in terms of time, money and energy does not only make the world better, but it’s you who become the best version of yourself day by day. Above all, there is more happiness in giving than receiving. With a perspective to give this an edge, ordinary citizens like us across the globe have developed organizations that we address as NGO (Non-Governmental Organization). We cannot blame the government every time for the inability of certain things, thus in a move to help, you need to join hands and work for an NGO. Here we will have a detailed look at the Procedure for the NGO registration.

What is NGO and why it is required?

NGO is an independent organization that is it is neither a part of a government nor a conventional for-profit business. These organizations work independently without any help of the government to help the public, ensure children education, and care for the environment. The agendas of the NGO vary, form health issues to the elimination of social evils. The members of the NGO do not enjoy the dividends, and it is utilized further for the benefit of NGO.

Which Act governs the NGO (Non-Governmental Organization)?

NGO Registration is regulated under the following three Acts:

  • Indian Trust Act, 1882 (Trust Registration)
  • Indian Societies Act, 1860 (Society Registration)
  • Companies Act, 2013 (Section 8 Company Registration)

What are the benefits of registering an NGO in India?

  • The benefit of registering an NGO is that it gives it a legal status and the NGO becomes accountable for all the received funds. But in case of an unregistered firm, the assets are received under any person’s name and they may use it for their own profit.
  • The benefit of registering an organization as an NGO strengthens the social, legal and ethical norms of the society.
  • The basic prerequisite for administration of an NGO is to have a bank account in its name. For the purpose of opening a bank account, it is obligatory to be registered as a Society, Trust or Section 8 Company.
  • The benefit of registering as NGO is that it can seek tax exemption from the Authority of Income Tax.

What is the Procedure for the NGO Registration as a Trust?

Before we go through the registration procedure, let’s have a look at the Documents required for the Trust Registration.

Documents required for the Trust Registration

  • Personal details of the Trustee such as the Name, age, residential address Contact number etc.
  • Address proof such as Voter Id, Driving license or passport of the Trustee and the settlers.
  • Ownership proof of the property such as Electricity Bill or House Tax receipt.

A rent Deed duly notarized with rent receipts and No Objection certificate from Landlord on an INR10 stamp paper.

Procedure for the Trust Registration

Some of the states in India have their own trusts act while some do not have any. These states follow the Indian Trust Act, 1882[1] for their Trust Registration.

  • At first, you need to draft the Trust Deed in which the following details are to be mentioned.
  • Name and Address of the Trustees
  • Name of the Trust (You can give a minimum of three preferences).
  • Address of the registered office of the Trust
  • Objectives and the Beneficiaries of the Trust.
  • Rules and Regulations that are to be followed by the Trust.
  • Tenure of the Trustee varies from 1 year to 5 years.
  • 80G and 12A Certificate application
  • Submit the Trust deed to the local Registrar along with one photocopy of the trust Registration. (Also the settler needs to be physically present at the time of registration along with the Original Id Proofs.)
  • Now, the Registrar will retain the photocopy, and you will get the photocopy of the Trust Deed.

What is the Procedure for the NGO Registration as a Society?

Before we go through the registration procedure, let’s have a look at the Documents required for theSociety Registration.

Documents required for the Society Registration

  • At first, you need to send a covering letter to register the society under the law.
  • MOA (Memorandum of Association).
  • Rules and Regulations of the Society.
  • A list containing the members of the society.
  • Affidavits of the office bearers
  • Address proof of the registered office and NOC from the Landlord.

Procedure for Society registration

  • At first, you need to select the Name of the society for the NGO Registration.
  • The state government will look after the Security registration. You need to submit all the documents with the requisite fees to the Registrar of the societies.
  • After the documents verification an Incorporation certificate with an NGO registration is allotted.
  • It takes about one month for the issuance of the Incorporation certificate.

What is the Procedure for the NGO Registration as a Section 8 Company?

Before we go through the registration procedure, let’s have a look at the Documents required for the Section 8 Company Registration.

Documents required for the Section 8 Company Registration

  • Id proofs such as PAN Card or Aadhar Card of the Directors.
  • Address proof of the registered office.
  • Passport size photograph of the Directors.
  • Rent agreement of the Registered Office.
  • NOC from the owner (in case of the registered office)
  • Utility bills such as telephone bills etc.
  • Assent to work as a Director in Form DIR-2

Procedure for the Section 8 Company registration

  • Firstly, you need to apply for the DSC of the proposed Directors.
  • After this, you need to select a name for the Section 8 Company which should be in accordance with the rules mentioned.
  • Draft MOA and AOA.
  • You need to file an incorporation application for the Section 8 company incorporation. Now, license can also be applied through filing of an incorporation form.
  • After all the verification of the documents, the Registrar of the Companies will issue the Certificate of Incorporation along with the license.

Recent Update

  • According to the bill passed in the Lok Sabha, the Foreign Contribution Regulation Act (FCRA) was amended for the NGO office-bearers to compulsorily submit their Aadhaar numbers while registration.
  • The new act prevents the NGO to accept or transfer the foreign contributions to any organization or person unless it is registered.

Conclusion

Non-Government Organization provides an opportunity for the self-organization of society and is meant for the well being of the people. This can be done a variety of means such as by doing campaigns and participating in pilot projects. Also, it act as an intermediary between the government and local people because it informs us about what the government is planning and doing for us.

Read our article:How to Get 80g Registration for Trust?

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Shalini Singh

Shalini is a B.tech graduate but her keen interest in writing impelled her to continue as a content writer. Further, She has a rich experience in Companies Act and Ammendment related topics.

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