What is NGO
A Non- Governmental Organization (NGO) is a non- profit organization, which aims to work towards the progress of the unprivileged sections of the society or towards the betterment of society in general. NGO’s can be registered as a trust, Society or Non – profit Company (Section 8 Company), depending on the activity you wish to undertake.
Types of NGO Registration
- Trust Registration
- Society Registration
- Section 8 Company Registration
Law applicable in India to an NGO is;
- Society under Society Registration act,1860
- Trust under Society Registration act, 1860
- Section 8 Company under the companies act,2013
Purpose of NGO Registration
Due to the scrutiny that surrounds the setting up and running of organizations such as 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 background 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.
Pre-requisites to NGO Registration
- Need to obtain Digital Signature- Forms applicable for registration processes are signed digitally, so it’s mandatory to obtain DSC. Digital signatures issued by the government recognized authorities.
- Apply for director's Identification Number- You need to apply for DIN, the application has to be made in Form DIR-3. The form needs to be signed by a charted accountant or by Company Secretary.
Documents Required for NGO Registration
Here, listed down are mandatory for registration purpose.
For Trust Registration –
- Electricity or Water bill mentioning the address needs to be registered
- Identity proof of two members; voter Id, Driving License, Passport, Aadhaar card.
For Society Registration-
- The name of the society
- Office Address Proof
- Identity Proof of 9 members; voter Id, Driving License, Passport, Aadhaar card.
- Copy of Bylaws of Society and Memorandum of Association
For Section 8 Company-
- Company name approval
- Office address proof
- Identity Proof for the all the director- voter Id, Driving License, Passport, Aadhaar card.
- Memorandum of Association and Article of Association of Company.
Forms Required for Registration
Form INC 1
This form is required for registration of NGO
Form INC 7
Application for incorporation of NGO is made along with this form
Form INC 12
This form is submitted to acquire a license to run an NGO
Form INC 13
For Memorandum of Association
Form INC 22
Details of the registered address are provided as prescribed in this form
Form DIR 12
For the purpose of appointing the directors in NGO
Procedure of Incorporation
- Firstly, obtain DSC for the proposed director. Once DSC is received, you need to file Form DIR-3 with the ROC for getting a DIN.
- Secondly, after obtaining DSC and DIN from ROC, file Form INC-1 with ROC for applying company name. Total six names can be applied, out of that one would be allotted.
- The third step is to file Form INC- 12 with the ROC to apply for the License for Section 8 Company.
Documents need to be attached with INC-12 are;
- MOA as per Form INC-13
- Declaration as per Form INC -14
- Declaration as perform INC -15 (Declaration from each person making an application)
- Estimated Income and Expenditure for the next three years
- After approval of form license and company incorporation certificate will be issued by ROC.
- Now the company is registered, and TAN and PAN will be provided.
Benefits of NGO Registration as Society Registration
- Separate Legal Entity
- Limited Liability
- Legal Protection
- Exemption from Income Tax
Benefits under Section 8 Company
- No minimum capital required
- Separate Legal Entity
- Tax Exemptions
- No stamp duty payable
- No Title required