What is NGO Registration?
Multiple nature of NGOs exists in the Indian economy such as Trust, Society, Non-Profit Company. Different types of NGOs are registered depending upon there kind. Thus, NGO registration is done keeping the applicability of the NGO under the Trust Act.
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
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
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.
Frequently Asked Questions
In our country, an NGO can be registered in any of the following three structures:
- Section 8 Companies
- For Trust Registration – Indian Trust act, 1882
- For Indian Societies Act – Indian Societies Act, 1860
- For Section 8 Company Registration – Companies Act, 2013
After three years from the expiration of the NGO registration, you can apply for the FCRA registration.
Since Section 8 Company works for the betterment of society and work with charitable objects, the company is not allowed to pay the dividend to its members.
- TRUST – Minimum 3 members are required plus one assignee and two trustees.
- Society – Minimum 7 members are required.
• But eight members required if the society is registered on the national level, and it varies from state to state.
- Section 8 Company – Minimum of 2 Directors or Shareholders.
You need to acquire the FCRA (Foreign contribution Regulation Act, 2010) registration to accept any kind of foreign grants. After the successful registration of the NGO, the company can apply for the “prior approval” for which the following conditions need to be satisfied:
• The foreign grant will be utilized for a specific project and will be remitted by a particular contributor.
Following factors must be considered while selecting the name for the proposed NGO
- The name to be chosen must not violate any of the provisions of the Names and Emblems Act, 1950.
- The proposed name should not be obscene or hurt the sentiments of a particular society.
- It must not indicate any kind of affiliation to any government body.
- Also, the proposed name should not be identical to the already registered entity in that particular category.
Following persons can become a member of the NGO:
- Any individual residing in our country.
- Foreign individuals provided that they provide all the relevant documents.
- Any LLP or registered partnership firm.
- Companies registered under the Companies Act, 2013
- Any registered Society.
The concerned entity is recommended to apply for the 80G and 12A registration for the purpose of dual tax exemption as it provides tax relaxation to both the employees and its donors.
Yes, a government employee can also become a member of the NGO provided that the NGO is non-profit making organization.
The documents are listed below:
- For the Trust Registration – Trust Deed
- For society Registration – MOA, By-laws, and Forms
- For Section 8 Company registration – MOA and AOA
The most important assistance that the Corpbiz provides is that it helps you in choosing the best business model for your non-profit organization. Also, our team of experts will make the entire process smooth and hassle-free.