An Overview of NGO Registration
A Non-Governmental Organization, popularly known as NGO, is a unit that operates independently without government aid with a particular aim towards the welfare of the public, a social agenda, child education, care of the environment, wildlife, etc. These work at different levels and with a wide range of agendas. NGO Registration may be operational only at a village level and may even be spread across the country in various cities. The agenda may vary from health issues to the elimination of social evils. It is a non-profit organisation. Hence, the profits are only utilised to go forward with the agenda, and no dividends are distributed to any members.
Why is NGO Registration required?
- It brings credibility to the organisation and those providing donations will be more inclined to associate themselves with those NGOs which are registered; the registration gives a sense of authenticity.
- NGO Registration ensures more exposure to the organisation and it may help a local NGO expand its scope or area of operations.
- It widens the scope of bringing both financial and manual resources. More volunteers will come forward and this will be beneficial for the NGO.
- Registering your company as an NGO in India under the Companies Act, 2013 and avail several benefits for the company’s directors. NGOs in India are exempt from several taxes and it helps the company save taxes & invest the saved money in further projects.
- Companies registered as NGOs under the ITR Act, 1961 are not restricted from transferring their ownership or claims of the interest earned.
- All companies incorporated as NGOs under ITR Act, 2013 are exempted from stamp duty which accounts for more tax-saving methods for the company. All the taxes saved via stamp duty are then invested in promoting the motto taken up by the company.
Classification of NGOs in India
In India, NGOs are categorised based on the different levels and you can check the same below:
- Level of Operation:
- City-wide organisation
- National NGOs
- International NGOs
- Community-based organisation
- Level of Orientation:
- Service Orientation
- Charitable Orientation
- Participatory Orientation
- Empowering Orientation
Different Ways to Register an NGO in India
To run an NGO in India in the Form of (Trusts, Societies, and Companies) in a correct manner, a certain set of rules should be followed. In India, NGO Registration can be done in three different ways:
- Society Registration under Societies Registration Act, 1860;
- Section 8 Company Registration under Companies Act, 2013;
- Trust Registration under the Indian Trust Act, 1882.
Vital Documents Required for NGO Registration in India
- Documents for NGO Registration as a Society:
- Name of the society;
- Id proof of all the members;
- Address proof of the premise;
- Two copies of the MoA (Memorandum of Association) & By-laws of the society;
- Documents for NGO Registration as a Trust:
- The objective of the Trust;
- Details of the Trustee and Settlor (such as identity and address proof along with the information related to occupation);
- Latest photographs of Trustee and Settlor;
- Trust Deed on proper stamp value;
- PAN Card of Trustee and Settlor;
- Address proof of the registered Trust and in the case of rented property (NOC from the landlord is required).
- Documents for NGO as Section 8 Companies Registration:
- Copy of identity & address proof (including PAN Card);
- DIR-2 (consent of the directors) along with identity and address proof;
- Utility bill not older than two months;
- NOC is needed if the registered office is not taken on rent;
- Estimated annual income;
- MoA and AoA;
- Affidavit regarding deposits;
- Proof of registered office address;
- Particulars of the promoters and Board Members of the proposed company;
- INC-14 – Declaration by Professionals;
- INC-15 – Declaration by Promoters (INC-14 and 15 shall be on the stamp paper, duly notarised);
Procedure for NGO Registration in India
- NGO Registration as a Society:
Step 1: Choosing a Unique Name for Society: While choosing a unique name for the society, it is vital to remember that as per the Societies Act, 1860, that name should be distinctive. Moreover, the name proposed by the applicant must also not suggest the backing of the Government of India/any State Government/attract the provisions of the Emblem & Names Act, 1950.
Step 2: Prepare MoA: It is vital to prepare the Memorandum of Society. The Memorandum, along with the Rules & Regulations of the Society, must be signed by each of the founding members.
Step 3: Prepare all the Documents: An applicant must prepare all the vital documents required for Society Registration. The document shall be duly signed and the documents are as follows:
- Society name;
- Address proof of the working space;
- Identity proof of all the 9 members;
- Two copies of the MoA and By-Laws of the Society.
Step 4: Filing Application: An applicant must file the signed Memorandum and Rules & Regulations with the Registrar of Societies in the particular state along with the prescribed fees.
Step 5: Issuance of Society Certificate: Once all the documents are submitted and the Registrar is satisfied with the application, then they will issue the certificate.
- NGO Registration as a Trust:
Step 1: Choose a Name for the Trust: The first important step is selecting a Trust name. An applicant should take into consideration that the name so suggested shouldn't come under the restricted list of names according to the provisions of the Emblems & Names Act, 1950.
Step 2: Draft Trust Deed: For the Trust Registration, it is necessary to draft a Trust Deed. It's a document that contains all the vital information regarding the registration and the Deed must be present before the Registrar during Registration.
Step 3: Prepare MoA: After that, the applicant needs to prepare an MoA because it is vital to formulate the Memorandum of Association (MoA) as it represents the charter of the Trust and then pay the requisite fee for the registration.
Step 4: Collection of Trust Deed Copy: Once the applicant submits all the papers, then the applicant can collect a certified or original copy of the Trust Deed from the Registrar's Office.
Step 5: Submission of the Trust Deed: After attaining a copy of the Trust Deed, submit the same to the local Registrar and the same shall be submitted along with attested photocopies.
Step 6: Obtain Registration Certificate: Once the Registrar is satisfied with the application and documents, then they will issue the Registration Certificate.
- NGO Registration as Section 8 Company:
Step 1: Obtain DSC: This is the most crucial step because it is used for affixing the signature in e-forms.
Step 2: Name Reservation via SPICe+: The procedure for name reservation of Section 8 Company is identical to other companies. SPICe+ Form is used for the reservation of name of the company that comprises all the steps rights from Name Reservation to Post Registration Compliances. The applicant of Section 8 Company must fill in the name he or she wants to reserve for Section 8 Company. Provided the name shall comprise the words such as Association, Chambers, Association, Federation, Confederation, Forum, Federation, etc.
Step 3 – Submission of SPICe+ Part A Form: The applicant needs to submit this Form for name reservation and registration purposes and DIN is also included in the SPICe+ Form).
Step 4: Filing SPICe+ Part B: After that, the next step is to file SPICe+ Part for incorporation purposes in format for filing the related Form such as:
- SPICe+ MoA;
- SPICe+ AoA;
- INC-9 and URC-1 and for affixing the DSC.
Step 5: Preparing MoA and AoA: After filing the SPICe+ Form, an applicant needs to file MoA and AoA and all the details which are common in Part-B shall be autofill in MoA and AoA. The applicant is required to fill in all the information in MoA or Aoa As per the requirement of Schedule I. Also, affix the DSC of all the professionals & subscribers on the portal for the same.
Step 6: File AGILE-PRO: The next step is to file this Form. Similar to Part A, the details that are common in Part B shall be automatically filled in AGILE Pro and this Form includes GST (Optional), Bank Account, EPFO or ESIC.
Step 7: Filing Forms with MCA: An applicant needs to file the respective forms with MCA after filling all the details in SPICe+ and AGILE PRO and after submission, the documents can be submitted and Digital Signature Certificate can be affixed to the respective Form.
Step 8: Examination and Payment of Fees: The next step is an examination and after a successful examination, the applicant needs to click on the confirmation button and the applicant company is required to pay a requisite fee for the registration.
Step 9: Certificate: If the Registrar is satisfied with the application and documents, they will issue a Certificate of Incorporation.
Frequently Asked Questions
The term “NGO” denotes a unit that operates independently towards the social welfare of the public, children, animals, etc., that, too, without government aid.
The term “benefits” include Credibility, Exposure, Financial Resources, and Status of Legal Entity.
All the profits earned are used for the Social Agenda of the NGO.
No, an NGO cannot distribute Dividends to its Members.
The tenure of trustees will be from a minimum of 1 year to a maximum 5 years.
The documents required for Trust Registration are Details and Address Proof of Trustees and Settlers, together with the Ownership Proof of Property.
An Application in INC-12 Form has to be made by the individual who desires to incorporate the Section 8 Company to Registrar.
Yes, an NGO is eligible for Government Funding but after the expiry of 3 years.
No, one can start an NGO with a Leased Property as well.
Yes, one needs to obtain NOC from the owner of the property.
Yes, an NGO can accept Foreign Donations, but only after obtaining FCRA Registration.
The term “benefits” include Tax Exemptions; Separate Legal Entity; Limited Liability; and No need add a Suffix in the Company Name.
It is a special provision wherein if a donor donates to the NGOs having 35AC registration, he/she will get a 100% tax rebate.
The term “Member” includes Individual; LLP; Registered Society; Company; and Foreign National.
The term “NGO” stands for Non-Governmental Organisation.