NGO Registration in Delhi

Non-Governmental organisations (NGOs) are created for the betterment of society. These organisations carry out numerous activities such as poverty alleviation, environment protection, fighting for social causes, education, and health care. Being the capital of the country, numerous NGOs are registered in Delhi. These groups work together voluntarily to further social objectives in the state.

In Delhi, NGOs can be registered in three ways these are:

• As a Trust under the "Indian Trust Act. 1882"
• As a Society under the " Societies Registration Act, 1860"
• As a Section 8 Company "under the Companies Act, 2013"

What are the benefits of NGO registration in Delhi?

• No threshold for capital requirement:

No minimum capital is required to set up an NGO in Delhi. In order to facilitate the creation of NGOs, the government has not put a limit on the capital required to establish an NGO, unlike other entities.

• Transfer of Ownership Rights:

The government has eased the transfer of ownership of a Section 8 company. This ensures that if an NGO requires funds, it can easily do that by transferring the ownership. This ensures that the NGOs' operations are not affected by the lack of funds.

• Limited liability of the members:

If you registered an NGO in Delhi, it is bound to have limited liability. Limited liability allows the NGO to act as a separate legal entity. This means that the NGO shall be able to buy, sell or hold property under its own name rather than of its members or owners.

• Tax Exemptions:

If the NGO Registration in Delhi is made under section 8 of the companies act, then it shall be able to have numerous tax exemptions. But the condition still remains that all the profit must be reinvested in the NGO to meet its objectives.

• Exemption of Stamp Duty:

The income tax act has exempted section 8 companies from payment of stamp duty. When the stamp duties are exempted, it saves the NGO a lot of costs. This money can be redirected to other purposeful work of the NGO.

• Perpetual Succession:

A registered NGO acts like a legal entity. So, An NGO shall enjoy perpetual succession; this means that an NGO shall continue to exist irrespective of the fact whether its members are in existence or not. NGOs can only be shut down by following the due course of law.

Type of NGO Registration in Delhi

NGO registration in Delhi can be completed in any of the three ways mentioned below:

• By getting registered as a Section 8 company: These are LLPs (Limited Liability Companies) created to benefit society. These companies are regulated by the norms specified under the Companies Act, 2013. Usually, the government and donors prefer this type of NGO.
• By the creation of a trust as per the Indian Trusts Act, 1882: Public trusts are designed to help the public at large. The trusts must clearly specify the purpose for which it is created, and it cannot be changed or terminated without the trustees' permission. Such kinds of NGOs are preferred in cases of permanent institutions such as orphanages/nursing homes/ educational trusts etc.

Registering as a society under the Societies Registration Act, 1860: Societies are created by voluntary membership. It operates under the rules that the members themselves create.

• Details of the Trustees and settlor ( Must include Identification proof and address proof)
• Photographs of the Trustees, the settlor
• PAN card of the Trustees, the settlor
• Documents of ownership/ Rent agreement for the Trusts Registered Address.

• NGO Society Registration
  • Name of the Society
  • Document showing address proof of Society
  • Identity proof of the members.
  • Copies of MOAs and Bye-laws of the Society.

• Documents for Section 8 company NGO
  • Identity proof and Address proof (copy)
  • DIR-2 Form (Consent of the directors) this must include ID and Address proof
  • Utility bills such as (electricity, gas, telecom bills etc) are not older than two months
  • Address proof of the registered office
  • A Non-objection certificate stating the registered office is not on rent
  • Affidavit regarding deposits
  • Declaration by professionals (INC-14) – notarized on stamp paper
  • Declaration by promoters (INC-15) notarized on stamp paper
  • Estimation of annual income
  • Articles of Association and Memorandum of association

Details of the promoters as well as the prosed board members.

The procedure of NGO Registration in Delhi

• NGO Registration in Delhi – As a Trust

A trust is created when the owner is obliged to dispose of his property for the benefit or welfare of a third party (Beneficiaries). The owner of the property lays down all the conditions of the way he wants his property to be used in a document called the Trust deed. The trust deed specifies the name of a few people known as trustees who shall be responsible for ensuring that the property is used per the owner's desire. The trusts are of two types private (usually for family members) and public (for the public at large). The public trust is the ones that function as NGOs as they fulfil social, charitable or religious purposes.

• Process of NGO Registration in Delhi – As a Trust

1. A person who wants to create a Trust as an NGO must make an application to the registrar, which comes under the jurisdiction of the registered office of the NGO, with the necessary documents and the requisite fee.
2. The applicant should have the following details completed:
   1. Name of the NGO
   2. The Name of the Trustor and the details of the proposed successors
   3. A duly signed copy of the trust deed.
   4. The deed must specify the trustor's objectives.
   5. Trust Registration and Stamp Duty- This shall vary from state to state. In Delhi, it is Rs.1100 (100 is the registration of the fee and 1000 is for the keeping the copy of trust with the Sub-registrar)
3. Once the application is submitted, the authorities shall scrutinise it thoroughly. If satisfied, the authorities shall grant registration to the trust and issue a certificate that will bear a unique number.

• NGO Registration in Delhi- As a Society

Society is created when a group of people come together to volunteer and work together to achieve a common/mutual cause. This can be done for various purposes such as fostering religion, culture, art, sports education etc. These societies have to be registered as per the provisions laid down by the society registration Act 1860.

• Process of NGO Registration in Delhi- As a Society

1. The first and foremost step is to choose an apt name for the Society. The applying entity must ensure that no other society is registered with the same name. The name should not be prohibited or banned under the provisions of the Emblem and names act 1950.
2. The members of the Society should devise a memorandum of association and article of association. It should also formulate the other rules and set objectives/ goals for the organisation.
3. After the completing the abovementioned steps. The entity must prepare all the documents and submit them to the registrar of societies that fall under the Society's jurisdiction along with the fee.
4. If the registrar is satisfied, he may issue the certificate for registration along with the NGO registration number.

• NGO Registration in Delhi – As a Section 8 company

An NGO can be registered as a Section 8 company as per the provisions of the companies act 2013. These entities are also called Non-profit organisations. These act as a public or private limited company but solely with a welfare motive. These organisations, if they make any profit, are bound to reinvest the amount to fulfil the NGO's obligations. The members should not take money out of the NGO in any form or manner.

• Process of NGO Registration in Delhi- As a Section 8 company

1. The entity needs to get registered itself on the MCA portal. The applicant must keep an official email id and mobile number to create a login id and password.
2. Necessary licenses need to be provided on the portal, such as :
   1. Application for Digital Signature certificate
   2. Reservation of Unique name (RUN facility) application. Two names have to be proposed along with it.
   3. Application for PAN and TAN identity of the company.
   4. Application for GST registration
   5. Registration of PF and ESI for employees.
   6. Creation of 'current bank account' for the operation of NGO.
3. After this, the applicant needs to fill in details for SPICe+ here; necessary documents and details must be provided. Once the application is duly filled requisite fee needs to be paid.
4. The registrar of companies shall scrutinise the application if the registrar is satisfied with the application and other attachments. Then the registrar shall issue the entity a certificate of Incorporation.