Overview of NGO Registration in West Bengal
There are various NGOs or charitable organisations in the state of West Bengal. These entities conduct welfare activities for various sections of the society, such as providing children education, employment generation, upliftment of the poor, women empowerment and environment protection. NGO registration in West Bengal can be carried out in different forms depending upon the factors such as the number of members, level of operations and the scope of future expansion. An organisation can complete the NGO registration in the following ways:
- As a Section 8 Company as per Companies act
- As a society as per the Society Registration act
- As a Trust as per the Indian Trusts Act
Benefits of NGO registration in West Bengal
If an NGO gets itself registered in West Bengal, then it shall be able to avail of the following benefits:
- Claim Tax Exemption:
The NGOs are registered under the Companies Act,2013. the tax exemptions help the organisation to utilise the funds in a better manner.
- Right to own assets:
If the NGO is registered, it has the right to acquire land, own immovable assets and have liabilities under its seal. The unregistered organisation cannot buy, hold or sell the land.
- No limit for capital requirement:
Registered NGOs do not have any minimum capital requirement. An NGO can function with the charities and donations made to them.
- Exempted to stamp duty:
The Income tax act exempts the entities registered under the companies' section from stamp duty. The amount saved from the stamp duty can later be invested to foster the NGO's cause.
- Opening of Bank Account:
In today's time, the dealings of an NGO must remain transparent. At the same time, the donors and other contributors would prefer to write their checks in the organisation's name rather than an individual's.
Types of NGO registration in West Bengal
Registration as a Society:
Societies are an organisation made by a group of people who come together to further a cause like social welfare, charity or promotion of arts, science and literature. These types of NGOs are registered under the Societies Registration Act, 1860.
Registration as a Trust:
The other way with which an NGO can be registered is by way of creating a trust. The trust is created by the settlor. The settlor appoints trustees who are responsible for taking care of the trust for the benefit of the third party, the beneficiaries. These trusts are created to support and help the underprivileged sections of society. To get a Ngo registered as a Trust, a person has to conform to the norms laid down under the Indian Trusts Act.
Section 8 Companies Act:
Entities that want to be recognised as NGOs can register under Section 8 of the companies act. The company's objective should be activities such as promotions of arts, literature, Science, Sports, religion, environment protection and other charitable work. This kind of registration is usually preferred by all the stakeholders, including the government, donors and beneficiaries.
Documents required for the Registration of NGO in West Bengal
For NGO registration in West Bengal as a Society
- Name for the society
- Address proof of the registered office
- Photo Identity proof of all nine members
- Copies of MOA and Bye-laws of the society
For NGO registration in West Bengal as a Trust
- Document stating Trust Deed's objective
- Details of the Trustee and settlor
- Trust deed drawn out on stamp paper of appropriate value
- Details of Pan Card of the trustees and settlor
- Documents showing the address of the registered office.
For NGO registration in West Bengal as a Section 8 Company
- Memorandum and Articles of Association
- ID and PAN details of all the key members
- Utility bill of the registered office not older than two months
- Documents showing proof of the registered office
- Declaration of both INC-14 and INC-15
- Details of all the promoters
Details of all the board members
Procedure for Registration of NGO in West Bengal:
Process of Registration of NGO in West Bengal as Society:
- Select the name for the society. One must keep in mind that the name should not contain any word or term which may imply that society has the patronage of the state government or Central government.
- Preparing the memorandum of the society: The applicant should prepare the memorandum of the society and create rules and regulations. All the founding members must sign it.
- Preparation of documents: The applicant must ensure that all the documents as stated in the section above.
- Submission of Application: The applicant must submit all the documents to the Registrar and also pay the requisite fees for the registration.
- Obtaining the certificate: Once the Registrar is satisfied with the documents and the application form, a certificate of registration of the society shall be granted to the applicant.
Process of Registration of NGO in West Bengal as Trust:
- The organisation must select an appropriate name for the trust.
- The trustor must draft the trust deed. The deed must clearly specify the property involved, the trustees appointed, and the trust's ultimate beneficiaries.
- The entities must create a memorandum of association that shall state the trust's purpose.
- Then the organisation must pay the requisite fee to the sub-registrar as a registration fee.
- After the fee payment, a copy of the deed must be collected.
- The trust deed must be registered with the Registrar.
- Once all the formalities are completed, the entity shall receive a registration certificate.
Process of Registration of NGO in West Bengal as Section 8 Company:
- Obtain the digital signature Certificate (DSC): a person must obtain the DSC for electronic signature on the application.
- Selection of name under SPICE+ Part A: The applicant must check for the availability of a name under the SPICe+ portal. The applicant must ensure that words such as chamber, foundation, association etc. should not be used.
- Submission of form Under SPICE+ Part B: The applicant needs to download SPICE+B and related forms for AoA, MoA, Agile PRO, INC-9 and URC-1.
- The applicant needs to file all the forms with the Ministry of corporate affairs. Once all the details are filled in and documents attached, then DSC must be affixed to the form.
- Scrutiny of the application and the payment of fees: the applicant needs to pay the requisite fee. Meanwhile, the form shall be scrutinised by the authorities.
Receiving of COI: If the Registrar is satisfied with all the criteria, he shall grant a certificate of incorporation to the NGO.