NGO Registration in Kerala
Kerala is one of the southern states in India. The state depends on tourism, exports and the industrial sector for the welfare of its people. According to the government's data, Kerala ranks high in various Human development indexes, such as human life expectancy, literacy rate, gender ratio and population growth. Apart from the government initiatives, the NGOs in Kerala have proven to be major players for these positive numbers. The NGOs in the state have relentlessly contributed to poverty alleviation, education for all, women empowerment, environment protection and employment generation. NGO registration in Kerala can be completed in the following ways:
- As a trust under the Indian Trust Act 1882
- As a Society, under the Societies Registration Act 1860
- As a Section 8 under the Companies Act 2013
Types of NGO Registration in Kerala
NGO registration in Kerala can be completed in three ways:
As a Trust: To create an NGO as a Trust, the settlor must pledge his property to be used for charitable purposes or for the welfare of people. The settlor also needs to select a group of individuals called trustees; Trustees are individuals who shall take care of the property and make sure its benefits are given to the third party. All such details must be drafted in a document called the trust deed. The trust must ensure that it is formed as per the provisions of the Indian Trust Act 1882.
As a Society: A group of individuals can set up a Society as an NGO. It is crucial that society's object must be the welfare of the people. The society must be formed as per the provisions of the society registration act 1860.
As a section 8 Company: NGOs can be registered as Section 8 companies as well. The registration can be completed as per the rules laid down by the companies act 2013. This kind of registration is popular with both governments and donors because of its transparency. If an entity registered under this generates any profit, it must reinvest the money back into NGO to fulfil its objectives.
Benefits of NGO Registration in Kerala
Benefits of Trust Registration in Kerala
- The government may choose to provide land to the trust.
- NGOs registered as trusts can claim tax exemptions and are eligible for government grants and schemes.
- The donor shall be able to claim benefit under Section 80G
- The benefit of using a Registered name throughout the country
Benefits of Society Registration in Kerala
- A society registered as an NGO shall act as a separate legal entity, and members of the society will be held accountable for their own actions
- The liability of the members shall be in proportion to their shareholding capacity.
- The NGO shall be able to claim benefits under the Income Tax Act 1961
- Societies can also reserve the use of their name throughout India.
Benefits of Section 8 of the Companies Act
- There is no minimum capital requirement for an NGO registered as a Section 8 Company.
- No stamp duty is imposed on Section 8 Companies.
- The entity shall be eligible for tax exemption by the government
- Along the same lines as that of the trust and society, section 8 company can act as a separate Legal entity.
- The Transfer of ownership under Section 8 Company is easy.
Documents required for NGO registration in Kerala
The following documents are required for NGO registration in Kerala
- Selecting a Name for the organisation (Mandatory for all)
- Creating Trust Deed (for Trusts only)
- Documents of all the members (Common for all)
- Utility bill for verification of office address (Common for all)
- Memorandum of Association (for Society and Section 8 Company only)
- Articles of Association (For Section 8 company only)
- Digital signature Certificate (For Section 8 company only)
- NOC certificate from the landlord in case of rented property (Common for all)
- Pan Card Details (Common for all)
- Details of promoters and board members (For Section 8 company only)
Process of NGO registration in Kerala
Process NGO registration as Trust in Kerala
- The entity must choose an appropriate name for the trust, and the members should ensure that the name is not restricted by the provisions of the Emblems and Names Act 1950.
- The settlor must draft a trust deed where the objectives of the NGO must be clearly laid down in the deed. The name of the trustees should also be given in the trust deed. The deed lays down the procedure for how the trust shall operate.
- Then the applicant must pay the trust registration fee to the registrar.
- After fee payment, the entity can collect a copy of the trust deed from the registrar.
- Once the certified copy of the deed is received, it must be submitted to the local registrar's office along with relevant documents.
- Once all the steps mentioned above are completed, the registrar shall keep the photocopies and return the original deed and certificate of registration to the entity.
Process of NGO registration as Society in Kerala
- The organisation must finalise a name for the society. It must not use any name that might show the organisation's affiliation with the state or central government.
- The organisation must prepare a memorandum of association. Along with this, the other rules and regulations essential for the operation of society must also be created. And all the members must sign it.
- Next, the organisation must collect the documents which finalise the name of the society, official address proof of the society, Id-proof of all its existing members and two copies of MoA and Byelaws
- Once the documents are prepared, the applicant must file an application to the registrar of societies in the state.
- If the registrar is satisfied with the documentation process, then he shall be able to get a certificate of registration.
Process of NGO registration as Section 8 Company in Kerala
- The entity must apply for Digital Signature Certificate (DSC) this used to sign documents in the electronic format
- The entity must reserve the name of the NGO through the SPICE+ portal. The entity must refrain from using words like forum, chambers, federation etc.
- Once the name is finalised, relevant forms under the SPICE+ Part A must be filed. This includes the DIN application and Name reservation process.
- The next step involves the entity completing the SPICE+ Part B form. This includes documents for Articles of association, Memorandum of association, Various forms that fall under the AGILE PRO category, INC-9 and URC-1.
- After completing the steps mentioned above, the application needs to be documents submitted to the Ministry of corporate affairs.
- After this, a pre-scrutiny check shall be conducted. The applicant must pay the requisite fee along with this.
- If the registrar finds the application and documents satisfactory, the registrar shall issue the Certificate of Incorporation for the company.