What is Legal Advice for NRI?
What is NGO Registration?
A Non-Governmental Organization, popularly known as NGO is a unit that operates independently without the aid of government with a particular aim towards the welfare of public, a social agenda, child education, care of environment, wildlife etc. These operate at different levels and with a wide range of agendas. AN NGO registration may be operational only at a village level and may even be spread across the country in various cities. Agendas may vary from health issues to the elimination of social evils. It is a non-profit organization hence, the profits are only utilized to go forward with the agendas and no dividends are distributed to any members.
Why NGO Registration is required?
- NGO Registration brings credibility to the organization. Those providing donations will be more inclined towards associating themselves with those NGOs which are registered since NGO Registration gives a sense of authenticity.
- NGO Registration ensures more exposure to the organization. NGO Registration may help a local NGO expand its scope/ area of operations.
- NGO Registration widens the scope of bringing in resources both financial and manual. More volunteers will come forward and that will be beneficial for the NGO.
- NGO is a general term used and to make it a legal entity, it requires to be registered with the appropriate authority under the appropriate law. NGO registration may be done as:
- A Trust under The Indian Trusts Act, 1882
- A Society under Societies Registration Act, 1860
- A Section 8 company under Companies' Act, 2013
All the three shall serve the same purpose of working towards a common agenda which is not for the benefit of the members and the others involved, only are governed by different regulations.
How to Process NGO Registration as a Trust?
Few states in India have their own Trusts Acts in force to govern the trust registration in that particular state. If the state does not have any Trust Act for itself, then for Trust Registration the provisions of the Indian Trust Act, 1882 shall apply.
- The first step is to draft the Trust deed. Trust deed is non-mandatory but always preferred. Details to be mentioned in Deed are:
- Name and address of the Settler
- Name(s) and address(es) of the other trustees
- Name of the trust (minimum 3 preference shall give)
- Minimum and maximum number of trustees that are allowed
- Address of the registered office of the trust
- Objectives of the trust
- Beneficiaries to the trust
- Rules and Regulations to be followed by the trust
- Address for correspondence & Evidence: recent electricity bill/ telephone bill/ property card of the trust location.
- Tenure of Trustees: Tenure may be fixed as minimum 1 year to maximum 5 years.
- Application for 80G and 12A certificate
- Approach a local registrar & submit the Trust Deed, along with one photocopy for Trust registration. Physical Presence of Settler/s and two witnesses is required at the time of Registration along with Original ID proofs.
- The Registrar retains the photocopy & returns the original registered copy of the Trust Deed.
B. Documents Required for Trust Registration
- The details of trustees - Name, Father's name, Age, Residential Address, Occupation, Contact Number and Email address with two latest photographs
- Any address roof of the Trustee & the Settlers - Voter I.D / Driving license / Passport.
- Electricity Bill or House Tax Receipt or Water Bill Receipt or Ownership Proof of Property. If the property is rented, then a Rent Deed duly notarized with rent receipts and NOC from landlord on a Rs.10/- stamp paper.
How to Process NGO Registration as a Section 8 Company?
- Prepare all the required documents for NGO Registration.
- Apply for the DSC and DIN for the proposed Directors.
- Apply for the name of the company which should be according to the rules provided for the name and also check for name availability for NGO Registration
- A Memorandum of Association and Articles of Association has to be drafted.
- An application in INC-12 form has to be made by the individual who is desires to incorporate the Section 8 Company to the Registrar.
- After complete satisfaction of the documents, required details and the fee, the Registrar of Companies will issue the Certificate of NGO Registration
B. Documents Required
- Identity proofs and PAN of all the Directors/Promoters
- Address proof (Telephone Bill/Electricity Bill/valid Passport/Driving License/Aadhar)
- Latest passport size photographs of all the Directors/Promoters
- Rent Agreement or a Leave &License Agreement, of the registered office, if on rent
- NOC from the owner of the Registered Office
- The Utility Bills of the proposed registered office
- The Consent to act as a Director in Form DIR-2
- Details of the Director's directors in other companies, if any.
How to Process Ngo Registration as a Society?
- Name of the society has to be selected for NGO Registration.
- State Government looks after the Society Registrations. All the required documents with requisite fee as prescribed in 2 copies should be submitted to the Registrar of the Societies of the State where the society shall be situated.
- After careful examination of the documents, an Incorporation Certificate with a NGO registration number shall be allotted.
- The procedure till the allotment of the Incorporation Certificate takes about 1 month of time to be completed.
B. Documents Required
- A covering letter with a request to register the society under the law.
- A Memorandum of Association
- Copy of detailed Rules and Regulation of the Society
- List of all members of the Society
- Affidavits of the office bearers
- Residential proof of all the members
- Proof of address of the registered address, or NOC from the Landlord