What are the options for NGO Registration?

NGO stands for Non-government organizations which are formed to support the underprivileged sections of the society and help in the management of different issues such as social, cultural, legal, and environmental, art, science etc. There is no intervention from government in the functioning of these NGOs. People voluntarily give their name to contribute to the functioning of the NGO. In this blog we will discuss about the NGO registration.

Topics covered under this blog:

a.       What are the types of NGO registration?

b.       What is the process of NGO registration in the form of trust?

c.       What is the process of NGO registration in the form of society?

d.       What is the process of NGO registration in the form of section 8 company?

What are the types of NGO registration?

In India, NGO registration can be done in three ways. The Indian Trusts Act, 1882, Society Registration Act, 1860 and companies Act, 2013 governs the NGO in the form of Trust, society and Section 8 Company respectively.

Further, we will look into the procedure of forming these NGOs-

What is the process of NGO registration in the form of trust?

For NGO registration in the form of trust you need to clarify the following-

1.       Purpose of creating a trust

2.       Idea behind the trust

3.       Beneficiary details

4.       Properties of the trust assigned by the assignee

Further below mentioned steps will be carried out for NGO registration:

·         STEP1: Naming an NGO

The first step is to come up with the name for your NGO

·         STEP2: List of members of the trust

You need to specify, who will be the settler, trustees (at least 2) and beneficiaries for your NGO.

·         STEP3: Memorandum of Association (MoA)

You have to frame a Memorandum of Association (MoA) and trust deed which must include all the key provisions and clauses. Trust deed is executed on the stamp paper that should be of value in accordance with the laws prescribed by the government.

·         STEP4: Submission of signed deed

All the trustees and settler has to sign the trust deed, and register it with the local registrar of the area, where the NGO will be functional.

What is the process of NGO registration in the form of society?

 There are certain steps that need to be followed for the NGO registration in the form of society-

·         STEP1: Naming the Society

The first step is to select the name for your NGO.

·         STEP2: Formation of Governing Body

You need to decide upon the governing body of the proposed trust.

·         STEP3: Memorandum of Association (MoA)

Then you are required to make the memorandum of Association and by-laws of the proposed society. It consists of all the rules and regulations in relation to the registration and operation of the Society.

·         STEP4: Submitting Documents

At last, you just need to submit the MoA (Memorandum of Association), documents regarding the rules and regulations of an NGO, and other registration documents.

You have to submit all these documents with the registrar of the state, where the proposed NGO will be operating.

What is the process of NGO registration in the form of section 8 company?

Below are the steps to be followed for the NGO registration in the form of section 8 company registration-

·         STEP1: Obtaining the Digital signatures

The first step is to obtain the digital signatures for all the proposed directors of the company. These digital signatures will be required to sign the application of incorporation and few other related documents.

·         STEP2: Naming the Section 8 Company

There is a RUN service available on the MCA portal, which you can use for the name approval of the NGO. You will be allowed to propose 2 names for the proposed Company.

·         STEP3: SPICE form

This is the main step under which incorporation application is filed in SPICE form along with the necessary documents like MoA (Memorandum of Association), AoA (Article of Association) of the company. If the proposed directors of the company do not posses DIN then they can directly apply for DIN (Director Identification Number) through SPICE form.

·         STEP4: Form INC-12

You need to submit an online application in Form INC-12 to the respective ROC to get the license issued.

·         STEP5: Formation of an NGO

After the proper inspection of the application of registration by ROC, License will be issued; along with the Company’s PAN&TAN number.

Hope you have a clearer picture regarding the NGO formation in India.

For more information please contact Enterslice.

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How to apply for NGO Registration?

By structure, NGO registration can be of three types:

·         Trust;

·         Society;

·         Section 8.

But in this blog, we will study the simple steps involved in the NGO registration under Section 8 Company. But before we leap on that, let's first understand the meaning of NGO and Section 8 Company.

What is NGO?

NGO is abbreviated as Non-Governmental Organizations and isn't a part of the government. Typically, an NGO is independent of government and self-governing body. It is also known as a Non-Profit Organization. Generally, the prime business of an NGO is to provide support to an underprivileged section of the society and the work for the advancement of different issues like social, educational, legal, cultural, environmental, and more.

Meaning of Section 8 Company

A Section 8 Company is a company registered under Section 8 of Indian Companies Act, 2013 (or old Section 25(1) (a) & (b) of the Indian Companies Act, 1956, a section-25). Mainly, these companies have the principal objective of encouraging healthcare, social welfare, religion, art, commerce, science, sports, safety, research, charity, protection of the environment, and more.

Generally, the name of Section 8 Companies ends with words like Institution, Foundation, Association, Federation, etc.

Steps for NGO Registration under Section 8 Company in India

Step1: Procure DSC to sign documents

It is quite imperative for the applicant to obtain DSC (Digital Signature Certificate). Digital Signature is required to sign documents or incorporation form while filing e-forms on MCA portal. Also, a digital signature is one of the most secure and authentic ways of submitting documents online.

Documents required for obtaining DSC for directors are as follows:

·         A copy of PAN card

·         Driving license/Passport/Aadhaar Card/Voters’ Identity Card

·         Duly filled and signed Digital Signature Form

Step2: Application for name approval

The ROC (Registrar of Companies) will approve the name of the proposed company. One can obtain the approval from ROC through an application submission in RUN. The maximum of two names can be submitted in order of their preference. Name approval will take 1-2 working days.

Step3: Filing an application for License under Section 8

The next step to NGO registration under Section 8 Company registration is to get a license under Section-8. For this, the applicant is supposed to file constitutional documents, MOA (Memorandum of Association) and (AOA) Articles of Association, as a draft with ROC with necessary documents in Form INC 12 which will issue the company license under Section-8.

Step4: Incorporation Application with ROC

As we know that every proposed director in a company must possess DIN (Director Identification Number), for fresh DIN no separate application form is required to be filed and one can directly apply for DIN in the incorporation form.  Prior to this, a separate application form was required to be filed with ROC for obtaining DIN.

After filing of Form INC-12, one needs to file an incorporation form (SPICE) with ROC. After uploading and payment of required stamp duty and government fee, the incorporation form would be accessible to ROC. The ROC will check the form and if everything is correct including the name of the company, the ROC will approve the company.

After the approval of ROC, the applicant will receive the certificate of incorporation of the company and the NGO registration under Section-8 will be done. Along with, the applicant will also get the PAN and TAN of the company.

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3 ways of NGO Registration in India

To setup an NGO in India, you must have genuine desire to help others. For NGO registration in India, you have to pass through a legal process and start making contacts with minded people of society. To run an NGO, funds must be arranged and proper plans must be there by preparing budget proposals.

NGO is not for profit therefore there should be enough transparency in its dealings. Without expecting any profit, functions of the NGO are carried out for the welfare of the society. You must have a strong vision and dedication to serve the society. NGO (Non-Government Organization) is a type of organization which works for the charitable purpose and not for profit.

There are mainly 3 ways of NGO registration in India:

a.       Trust Registration as per Indian Trust Act, 1882

b.      Society Registration as per Society Registration Act, 1860

c.       Section 8 Company Registration as per Companies Act, 2013

Now let’s discuss about the NGO registration under the above mentioned three heads.

v  Trust Registration in India

In India, NGO registration can be done under various acts. To setup an NGO by trust registration there is a requirement of minimum two persons, however there is no prescribed limit for maximum members in trust registration. In Maharashtra, trust registration is done as per Maharashtra Public Trust Act. In trust registration, trust deed is the main component as it describes the powers assigned to the members.

v  Society Registration in India

Society registration is done as per the Society Registration Act and there is a requirement of minimum seven members. At the time of society registration you must make sure that proposed name have never been used before in the same office you are applying for society registration. Under this, by laws are a very important component and it must be as per the legal format.

v  Section 8 Company Registration

Section 8 Company registration is done in order to promote non-profit activities such as activities concerned with trade, commerce, art, religion, education, environment protection, social welfare, sports and research, etc. The income generated from the operations of the company is applied towards the promotion of the object of the company and it cannot be distributed as dividend among the members of the company. If you want to incorporate section 8 company as a private limited company then there is a requirement of minimum two directors and members however maximum 200 members can be appointed. Whereas if you want to incorporate a company as a public limited company then there is a requirement of minimum 3 directors and there is no limit for maximum members. In case of section 8 company registration, there is no requirement of minimum paid up share capital.

Forms required to be filed for Section 8 Company Registration in India

Forms	Description
RUN(Reserve Unique Name)	Name approval form
SPICE (Simplified Proforma for Incorporating Company Electronically)	Incorporation Application
INC-9	Affidavit from each subscriber
DIR-2	Consent to act as directors from all the proposed directors
INC-12	Application for license
INC-13	Memorandum of Association
INC 14	Declaration from professionals
INC 15	Declaration from the each person making application for Section 8 Company Registration
INC-16	Section 8 Company license

Note: Now there is no need to file separate application for obtaining DIN, it can be directly applied through SPICE form.

Step by Step procedure for Section 8 Company Registration

Step 1: Initially, proposed directors of the section 8 company have to obtain DSC (Digital Signature Certificate) from the certifying authority.

Step:2 After obtaining DSC for all the proposed directors of the company, RUN form is filed with the ROC (Registrar of Companies) for name approval along with the prescribed fee of Rs. 1000/-. In RUN form maximum two names can be mentioned out of which one will be allotted by the ROC on the basis of the availability of the name.

Step: 3 After name approval, form INC 12 is filed with the ROC in order to obtain section 8 company license along with the necessary below mentioned attachments:

a.       MOA in form INC 13

b.      AOA of the Company

c.       Declaration by professional in form INC 14

d.      Declaration by each person making application in form INC 15

e.       Estimated Income & Expenditure for the period of next 3 years

Note: It must be ensured that subscription page of the Memorandum and Articles of Association of the company shall be signed by each subscriber along with their details such as name, address, and occupation, in the presence of at least one witness who shall attest the same.

Step: 4 After verification of the above mentioned documents, ROC will issue the license in form INC 16 to section 8 company.

Step: 5 Once the license is obtained, incorporation application in SPICE form will be filed with the prescribed fees along with the necessary below mentioned attachments:

a.       An affidavit from all the subscribers in form INC 9

b.      KYC documents of all the directors

c.       Consent of all the directors in form DIR 2 along with the interest in other entities

d.      Proof of registered office premises

e.       Rent agreement and NOC in case of rented property

Step: 6 After verification of the incorporation application, Certificate of Incorporation will be issued along with the Company Identification Number (CIN).

Note: There is no need to file DIN application separately as DIN (Director Identification Number) can be applied directly through SPICE form.

For more information, you may contact us.

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Want to start a NGO? Get everything you need to know about it!

What Is The Basic Concept of NGO?

The Non-Government Organization (NGO) is a type of corporate entity which is a non-profitable or in other words a charitable organization. These NGOs work for the development and welfare of the society and not in the personal interest of the founder of the organization. These organizations can be registered in any of the following schemes in India:

v  They can be registered as Trust, under the Trusts Act, 1882.

v  They can be registered as Society, under the Societies Registration Act, 1860.

v  They can be registered as Section 8 company, under the Companies Act, 2013.

What Are The Roles and Responsibility of an NGO Organization?

The reason behind establishing any NGO is the betterment and upliftment of society from the one social cause which is not letting the society develop and grow with the current world of globalization and modernization. They work for non-profitable objectives that could be related to art, culture, trade, education, religion, environment protection, sports or any welfare program of society.

The point to keep in mind is that even if any profit is generated from the organization even that is put for the welfare cause and not in personal interest. The registration of a corporate entity requires a minimum number of two directors in case of private limited and minimum of three for public limited companies.

Avail the Advantages of NGO Registration

v  The first and foremost importance of NGO Registration is that it works in a local area and from grass root level focussing on the realities of the situation and people. So the progress can be monitored easily.

v  The concept of establishing an NGO is cheaper than corporate entities. It is easy for an NGO to raise funds in the name of charity and welfare of society.

v  They provide better communication as they have trained staffs for the people who connect with them at all levels and bring out the real scenario.

v  They have creative people who bring the innovative ideas towards any problem situation or community and address and find a solution accordingly.

v  They help improve the standards of living and help educate the people and broaden their horizons.

Follow the NGO Registration Process as a Section 8 Company with The Help Of Experts

v  The primary step is to obtain the Digital Signature Certificate (DSC) for all the corporate entities. They are to be issued by the government recognized certifying agencies only. The DSC can be obtained from different agencies but you must obtain either a class 2 or class 3 category of DSC. In the Class 2 category, the verification of the identity of the person is verified through a pre-verified database however in class 3 category the person has to be present himself for verification.

v  The next step is to apply for the Director Identification Number, all the directors of the organization must have the DIN. These can be obtained from the MCA portal. You need to duly fill all the required forms and get it attested by a practising professional who could be a chartered accountant or secretary of the company or cost accountant.

v  If the Registrar is satisfied by the details furnished above and all the relevant proofs of documents have been submitted along with the fees for NGO/Trust registration and other forms he will issue the company a certificate of Incorporation and that certificate will have a unique Company Identification Number (CIN).

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What is the procedure for trust registration?

Non-Government Organizations, NGO are those entities which work for charitable purposes without an aim for any profits for self. In India, NGOs can be registered as any of the following:

1.     Trust under Indian Trusts Act, 1882

2. Society under Societies Registration Act 1860
3. Section 8 Company under Companies Act, 2013

An NGO can be formed as a Public Trust (charitable trust) for the benefit of the general public with a specific objective that can be related to education, health, sanitation, eradication of poverty etc.  It is different from the formation of a Private Trust where a particular group of individuals, a family or a specific class of people becomes the beneficiaries to the trust.

What are the guidelines for a Trust Registration?

A)     “Any person who is competent to contract under the applicable laws or has the power to transfer the property that is transferable can create a trust.” A Trust like all the organizations is required to be registered. Trust Registration is a fairly easy process.

B)    Before starting the process of NGO Registration, few details are required  to be in place:

a.      Name for the trust

b.     A Registered Address for the trust

c.      Objects of the trust which must be for the good of the public at large.

d.     Two trustees of the trust

e.      One settler of the trust

f.        Property of the trust which may be movable or immovable.

g.      Funds that shall be accepted: donations, grants, contributions etc

C)    Next step is to draft a Trust Deed which shall mention the details as discussed above. Apart from those, the Trust deed shall also mention following

a.       Powers with the trustees.

b.      Bank details of the Trust

c.       The procedure in event of dissolution/ winding up

d.      May provide for the procedure of amalgamation with another NGO

e.       A clause for Accounts and Audits of the Trust

The Trust Deed must be printed on stamp paper of requisite value as per the State.

The Trust Deed must be accompanied by one (1) passport size photograph & a copy of identity proof of each of the trustees, settler and the witnesses.

D)   The Trust deed shall then be registered in accordance with the Indian Trust Act of 1882 with the local registrar of the state. Along with the Trust Deed, two (2) copies of the Trust Deed signed by the settler on all the pages have to be submitted.
For the registration, the trustees, settler and the witnesses must be present at the Registrar office along with their identity proof in the original.

E)    The registrar shall scrutinize the documents, the deed for all the required details and all the documents. Upon his satisfaction, the Registrar shall enter the details in the official record, keep one copy of the trust deed for the record and return the original Trust deed to the applicants.

F)    The Trust Registration Process is now complete and the Public Trust can now be operated in accordance with the Trust Act. The Public Trust is now ready to be operating as a Non-Governmental Organization for charitable purposes.

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