NGO Registration in Kerala

Introduction:

In Kerala, non-governmental organizations are mostly registered or established under the law in a variety of ways based on various variables like the scale of the organization or the level of operations, etc., and have a presence and work operations separate from the government of Kochi, Kerala.

NGO Registration in Kerala:

When an NGO has been assigned officially in Kochi, Kerala, it becomes an official entity in the eyes of the law, giving it greater visibility and numerous advantages like tax exemptions, gifts, and assistance from the government and business corporations, a lower likelihood of corrupt practices like fund-diversion, etc., as well as an increased sense of obligation for accomplishing its goals in the designated area and later grow its activities in other areas, which is not feasible in case of non-legal registration.

Types of NGO Registration in Kerala:

As mentioned above, establishing an NGO in  Kerala has several advantages in that it can provide an organization looking to launch a for-profit company on its own. Such a person may select any of the legal arrangements listed here.

• As a Section 8 company, a company with a non-profit goal;

• According to the Indian Trust Act of 1882, as a trust for the general good;

• According to the Societies Registration Act of 1860, as a society

Benefits of NGO Registration in Kerala:

1.    Tax advantages provided to NGOs

If a non-profit organization (NGO) is formed in Kochi, Kerala as a Section 8 business under the terms of the Companies Act, it is given numerous economic advantages in the form of tax cuts, allowing the NGO there to spend more money on its objectives and purposes.

2.    No Basic Capital Requirement

The authorities eliminated the rules about the minimal capital needed for NGOs, which are relevant in the event of other legal organizations, in order to promote the creation and registration of NGOs in the society in Kochi, Kerala. This implies that anybody can begin operating an NGO with any kind of capital.

3.    Small Liability

As a legal body with limited liability and an autonomous identity from its constituents, an NGO is able to hold and sell assets in its own right and bears its own earnings and losses instead of those of its members in Kerala.

4.    Simpler rights of ownership the ability to transfer

When an NGO is registered as a section 8 business in accordance with the rules of the Companies Act 2013, the necessity to impose any restrictions on the adaptability of its ownership rights is eased, ensuring members have easier access to capital when needed.

5.    Exemptions from Stamp Duty

Additionally, when an NGO registers as a Section 8 company, or one with a non-profit motivation, they are free from paying stamp duty, allowing them to save money for philanthropic goals or have more money available for the day-to-day operations of the business.

6.    Continuous Succession

As a corporation, an NGO can benefit from other legal privileges including the right of perpetual succession, which ensures that even if some of its members leave, the NGO will continue to exist until or unless it is ultimately disbanded in accordance with the law.

Documents required for NGO registration in Kerala:

For Registration of Societies

• Name of the Society as Proposed

• Address of the location where the intended location of the Society is

• Identification documentation for the proposed members

• The proposed society's objectives and bylaws are duplicated.

To Register A Trust

• The intention of the Trust Deed's Author; 

• Information on the Trust Deed's Author and Other Trustees; 

• Trust Deed on Appropriate Stamp Value.

• PAN Card of Settlor and Trustee.

• Evidence of the address of the location from which the trust has been suggested to be located;

For Company Registration:

• Copies of the intended initial subscribers' and the company's directors' identification documents.

• Utility bills of the location where the business is going to be situated, scanned, and a NOC from the proprietor of the property, if the place of business is being rented or leased;

• A duplicate of the duly-drafted MOA and AOA.

Process of NGO Registration in Kerala:

Enrollment as a Society

An organization is a legal entity that is established and registered primarily for the benefit or advancement of any charitable, scientific, or religious goal by a group of seven or more people with no ulterior motive. Such a society must register in accordance with the Society Registration Act of 1860's provisions and abide by all associated rules and regulations.

Step 1: Pick an acronym for the community that is acceptable but should not be

• Match the title of a current society that has been established under the Society Act too closely or identically;

• Any name that is prohibited or limited from being used as the name of a legal organization in accordance with the rules of the Emblem and Names Act, 1950; 

• Show any sponsorship or direct affiliation with any State Government of Kerala or the Central Government.

Step 2: Gathering the necessary paperwork and submitting it for registration in Kochi, Kerala

The suggested application organization must then gather all relevant paperwork and draught a memorandum and articles of association outlining its objectives and purposes as well as the regulations and laws that it must always follow up until the moment of its extinction. The Registrar of Societies in the region where the society is planned to be situated must receive all paperwork, once they have been created and gathered, along with the necessary money, in order to register the society.

Step 3: NGO registration in Kochi, Kerala, verification, and grant

The Certificate of Registration of Society with a specific NGO Registration number may be issued once the Registrar of Societies has reviewed the request and any supporting documentation and has determined that all conditions have been met.

Enrollment as a trust:

According to the Indian Trust Act, a trust is a responsibility given to a third party by the proprietor of the property for the sake of that person's welfare or for the welfare of the beneficiary, and that owner declares or expresses that duty through a document known as a trust deed. Although a trust can be either public or private in origin, it is typically a public trust that takes the shape of an NGO for any charitable, social, or religious cause.

Step 1: Document Gathering & Preparation

Any person who wants to establish a "public trust" (sometimes referred to as an "author of trust") must first fill out a form and then present it, along with the requisite paperwork and a registration fee, to the registering authority in Kerala.

Step 2: Application submission and registration approval in Kerala

As soon as he finds that all the conditions have been met, he may approve trust registration and give a registration certificate with a special identification number that the trustee must keep safe.

Creating a non-profit organization in Kerala:

According to the 2013 Companies Act, an NGO could be registered as a Section 8 Company, which is referred to as a non-profit organization. In Kochi, Kerala, these non-profit organizations are not permitted to share their earnings with those who belong in the manner of dividends or in any other way; instead, the money must be returned to the NPO to achieve its goals.

Step 1: Register for an account with the MCA portal

In order to create a user ID and password and sign on to the portal given to the Ministry of Corporate Affairs (MCA) for registration uses, the applicant must first enter his basic information, such as a registered email address and mobile number.

Step 2: Complete the online form and add the required attachments

The MCA has released a new unified form for formation as well as other requisite permissions and licenses needed for a fresh suggested firm, such as –

• Request for Reservation of Unique Name (RUN facility) petition with at least two suggested names

• Application for a digital signature certificate, which will be used to append the signatures of the intended company's permitted signatories;

• Creating a current bank account with the intent of conducting commercial transactions; 

• Applying for PAN and TAN identification for the company; 

• Applying for PF and ESI registration for employees; 

• Applying for GST registration.

Step: 3 Checking the Form and Issuing the Certificate

A Certificate of Incorporation may be issued after the application has been uploaded to the relevant Registrar of Companies, who will review it along with any additional attachments and determine whether the criteria for the incorporation of the business have been met.

Conclusion:

NGOs play a vital role in society by contributing to the social, intellectual, and moral well-being of the community. They assist the government not just in better implementing welfare programs but also in bridging any gaps that may exist in the implementation of government policies and programs. However, before beginning the registration procedure, it is crucial to comprehend the many NGO registration options available in Kerala and make the appropriate selection based on the organization's size, orientation, and other variables.

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Author:

Archita Sharma
Kanpur
IV year BA.LLB (Hons.) student from PSIT College of Law