NGO Registration
NGOs have been playing an instrumental role in uplifting societies and people lacking basic amenities. From facilitating potable water, and books to empowering youth, these institutions are committed to maximizing their societal contribution. NGOs can cater to one or more philanthropic goals based on their founding object. These include procuring and preserving historic artifacts, building institutions for art preservation, amplifying contributions in the field of science, backing societies with education and amenities, etc. Registered NGOs have better credibility and reach than unregistered ones. Therefore, opting for NGO registration is a prudent decision. Let’s delve into the nitpicks of the registration and other crucial factors.
Understanding Types of NGO Registration in India
NGO registration is classified into the following based on distinct objectives.
Trust Registration
A Trust technically refers to a non-profit organization (NPO), which is formed to uphold specific causes including healthcare, education, and social development. Those seeking trust registration must adhere to the norms of the Indian Trusts Act of 1882.
Society Registration
Society fosters the power of inclusivity and is run by a group of individuals with common goals. Society can promote a host of objectives including religious, charitable, literary, etc. Societies fall under the ambit of the Societies Registration Act 1860.
Section 8 Company Registration
Section 8 Companies are the non-profit entities under Section 8 of the Companies Act, 2013. They can advocate various causes such as art, commerce, charity, religion, etc without engaging in profit-oriented tasks.
Benefits of NGO Registration
Unlike unregistered NGOs, entities with NGO registration experience elevated credibility and recognition, paving a path to sustainable growth. Here are some potential benefits of securing an NGO registration in India.
- Registered NGOs have access to several tax benefits, translating to sustainable cost savings. This helps them to fund other projects, thereby diversifying their footprint.
- Only registered NGOs are entitled to secure tangible assets like land and acquire liabilities under their common seal.
- Registered NGOs are not necessarily required to maintain a minimum threshold of share capital. They can procure funds via charitable contributions.
- Registered NGOs eliminate the risk of personal assets due to limited liability, staying unaffected by foreclosure, bankruptcy, or divorce.
- Registered NGOs see zero restrictions when it comes to transferring ownership or interests earned thanks to the provisions of the IT Act 1961.
- NGOs can solidify their presence within the community by registering as a corporate body with their legal rights intact.
- No stamp duty bothers the registered NGOs in India, helping them ensure considerable cost savings for other projects.
- Registered NGOs have a better service life and longevity thanks to perpetual succession upheld by the law. However, a court order signaling an interim halt or winding up can refrain it from serving its endeavors.
- NGO registration can serve as a doorway to hassle-free credit from trusted financial institutions and lenders.
- NGO registration protects an entity’s name from illicit uses.
Documents Required for NGO Registration
Based on the type of registration, you must keep the following paperwork ready before filing an application for registration.
For Trust Registration:
- Properly stamped Trust Deed
- Self-attested copies of ID and Address Proof for Trustees and Settlor, including occupation details
- Objective of the Trust Deed
- PAN Card of Trustees and Settlor
- Photographs of Trustees and Settlor
- Proof of the Trust’s registered address (NOC from the landlord if rented property)
For Society Registration:
- Society name
- Proof of working space address
- Identity proof for all nine members
- Two copies of the Memorandum of Association and society by-laws
For Section 8 Company Registration:
- Proof of identity and address (including PAN Card)
- Consent form (DIR-2) along with ID and address proof of directors
- Utility bill (not older than two months)
- Registered office address proof
- No Objection Certificate (NOC) if the office is rented
- Affidavit for deposits
- Declarations on stamp paper (INC-14 by professionals and INC-15 by promoters), duly notarized
- Estimated annual income
- Memorandum of Association (MoA) and Articles of Association (AoA)
- Details of promoters and Board Members of the proposed company
Steps to Secure NGO Registration: A Complete Guide
Based on the registration type, you must undergo the following steps carefully.
Trust Registration Procedure:
- Select an apt trust name that aligns with the Emblems and Names Act of 1950.
- Draft a legally-viable trust deed. Enclose essential details, reinforcing the firm’s registration. Trust deed requires the state registrar’s approval before coming into effect.
- Next, select the settlor and trustees. Although there is no cap on the number of settlers in a trust, there must be at least two trustees as per the law.
- Draft charter documents, viz. MoA and AoA
- Pay the fee and submit the paperwork.
- Collect the certified copy of the trust deed
- Submit the real trust deed alongside properly attested photocopies to the registrar.
- Finally, secure the original copy of the trust deed.
Society Registration Procedure:
- Select an apt name that is legally fit and unique.
- Draft the company’s charter documents such as AoA and MoA.
- Secure credentials such as ID proof, address proof, and photos of society’s members.
- Filing registration application with the Registrar of Societies
- The concerned authority shall vet the documents for accuracy and legitimacy, and seek clarification if required.
- The grant of certification will come to light if the authority approves the documents.
Section 8 Company Registration Procedure:
- Secure the digital signature certificate (DSC) of founding members.
- Apply for a Director Identification Number (DIN) for the proposed directors
- Fill out the SPICe+ form to legalize the company,s name
- Draft founding documents such as AoA and MoA.
- File the SPICe+ Part A and Part B forms for Section 8 company registration. This form will accompany the MoA, AoA, and other required declarations.
- Pay the registration and wait till the inspection process is completed.
- If the paperwork is fine and encounters no objection from the registrar, the certificate will be granted to the applicant, marking the end of the registration process.
Conclusion
NGOs are often acknowledged as the bedrock of society, easing the lives of millions through unprejudiced and transparent initiatives that drive value. Performing the role of an NGO in India is also about adhering to some legal requirements, which also involve registering the entity. By adhering to the above information, you can easily secure the NGO registration. However, if you encounter any legal glitch, feel free to connect with Adviso without thinking twice. Our seasoned experts will ease your registration journey through comprehensive and expeditious assistance.
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