What do you mean by an NGO Registration?
An NGO refers to a non-governmental organization that exists for not making a profit. It is generally involved in welfare activities and it usually works for the poor section of the society or may even work towards a particular region or a cause. They may focus on different sectors like environment, or for animal rights or for human rights. They may also work for the improvement of health and welfare of children or for developmental work and may even for raising awareness about a particular activity or a cause such as art. Many of the NGOs can also work for religious or for political interests in a country. Since these NGOs exists for not making a profit, which means they cannot pay any profits or dividends to their members and if they do end up making a profit from their activities, they end up reinvesting it back into their cause. NGOs are able to raise funds from what they get in the form of donations and may or may not get tax breaks on the donations. When it comes to setting up a non-governmental organization in India, it has to be set up either as a society or a section 8 company or simply as a trust. You can do NGO Registrationor Trust Registration through Corpbiz.
Different types of NGO Registration
- NGO Under the India Trust Act of 1882
- NGO under the Indian Societies Act of 1862
- NGO under the Indian Companies Act of 2013
A trust exists for the general welfare of the public in a society. A trust is set up having different types of interests which may be animal welfare or education or it may even be religious or recreational as well. It is however, usually set up when there is the involvement of some form of property, such as a hospital or a school, for example. The different states in India have different acts that are related to the trusts, while others are generally under the Indian Trust registration Act of 1882. In order to have a trust set up, you are required to draft and submit a trust registration deed to the government in order to have it NGO registration officially.
An organization that is set up under the Indian Society Act of 1860 is referred to as a society. It has a proper managing council as well as a governing authority that carries out its principles and manages the running of the society. The NGO Registration process of running of the society as well as the process of setting it up is quite similar to that of a housing society. Similar to a company under the section 8 law, a society also requires Articles of association, as well as a memorandum of association. Moreover, there are by laws in it as well, which can however be amended by the managing council.
A company that is under section-8 is quite often formed in order to promote recreation, commerce as well as religion or even art. Such a company has limited liability. One of the prerequisites of such a company, under section 8 relates to their profits. The profits earned by such a company cannot be divided amongst its members and they should only be used strengthening and for the further promotion of their work as an organization. The set up and the running of NGO Registration is similar to that of a private limited company.
NGO Registration Process
- A working day
- Seven Working Days
- At least three months
Once we are aware of what your requirements are, we can then suggest the type of NGO registration that will suit the cause which you are working for. This depends on a number of factors, such as the amount of money you are willing to spend on it in the initial days, as well as the duration of time you are willing to wait for the set up of NGO registration and also the different features which are there in a society, trust registration or a section 8 organization.
Once you have decided which form of organization you want to go for NGO Registration, which one suits your requirements, we will then inform you regarding the documents which are required for setting up and the NGO registration of each type of these organizations. As soon as you have provided these documents to us, we can begin the NGO Registration process of drafting them. This will probably involve the drawing up of the trust Registration deed, if your organization is being registered as a trust, or alternatively, go with the Trust registration process of the directors with the MCA, if it is section 8 company.
Registrars are very careful about which of the organizations or entities they will be registering and approving. It usually takes a longer time for a society and a trust as well as section 8 companies to be set up due to the tedious process of approvals and checking and the scrutiny done by the authorities.
Differences Between a Society, Trust and a Section 8 Organization
The Management System
A functioning and running of a society is managed by a managing council or a committee. A Trust Registration on the other hand, is run by its board of trustees while a section-8 company is more like a private limited company that is managed by a board of directors. For a trust registration, it must have a minimum of two trustees; a society should have a minimum of seven committee members, if it is a state level society and eight committee members if it is a national level society. A section-8 company on the other hand, should have a minimum of two members if it is registered as a private limited company and at least seven members if it is registered as a public limited company.
Jurisdiction and Law
The Registrar of societies is responsible for the governing of a society, while a trust is governed by the registrar of trusts and therefore there has to be a trust deed to be drawn up and registered for the running of the trust. On the other hand, the registrar of companies and also the commissioner is responsible for overseeing the section-8 companies. The section 8 companies therefore are also subject to an audit requirement every once in a year.
Due to the scrutiny that surrounds the setting up and running of organizations such as the section 8 companies, societies and trust, it takes much longer of them to set up and get NGO registration. This is in contrast to private limited companies, which are set up only in about two week's time. The reason for taking longer with the scrutiny NGO Registration process is for the governing body to do their thorough back ground checks in order to ascertain that these organizations are really being set up with a genuine and a real interest in the cause. It takes around 75 days for the registration of a section 8 company; it takes about 45 days for registering a society while it takes around 20 days to trust registration.