An NGO stands for Non-Government Organization
NGOs could be registered in India under these laws:
a. Trust under the Indian Trusts Act, 1882.
b. Society under Societies Registration Act 1860.
c. Section 8 Company under Companies Act, 2013.
The Benefit of NGO Registration
The NGO’s could receive donations from foreign or from government or corporations to carry on their social work for the society.
The NGO could apply for 12A and 80g registration just after its registration. By getting itself registered under 12A, the tax of NGO is exempted that is, the NGO is not supposed to pay any tax. The benefit of 80G registration basically involves that the donor receives a rebate in the tax of 50% while donating any sum towards that NGO.
NGO registration in India could be done under:
TRUST ORGANIZATION
One way of registering the Non-governmental organization is by incorporating it as a trust. The bodies that get registered as trusts as per the NGO registration procedure are generally those who work relating to the eradication of poverty, giving education, as well as giving medicinal relief. Trust organizations are irrevocable. This basically means that these entities cannot be terminated or changes unless and until such actions have been approved by the beneficiary.
SOCIETIES ORGANIZATION
Societies are also recognized as member-based entities that operate for charitable purposes. These entities are almost always run under the authority of a governing body or a management committee. As opposed to trusts, societies come under the jurisdiction of the Indian law, namely the Societies Registration Act, 1860.
SECTION 8 COMPANIES
A Section 8 company is principally a Limited Liability entity which is formed with the purpose of Social welfare and cannot reap any profits. These entities are established in order to promote science, art, commerce, charity, religion, or any other contributing cause to the betterment of society.
NGO registration in Delhi
Prior to a registered deed is delivered towards an NGO, the submission of some particular documents is required.
TRUST REGISTRATION
For the trust registration, the documents required are:
• A bill of electricity or water bill specifying the address that requires to be registered.
• The identity proof of a minimum of two members of the corporation. The proof could be:
- Voter ID
- Driving License
- Passport
- Aadhaar Card
It takes near about 8 to 10 days for online registration to be completed under the Indian Trust Act – 1882. Prior the deed becomes valid all over the nation; the settler is required to deliver a presentation at the office of the registrar.
Note: On the date fixed for registration, the Author of the Trust shall be present in the Register Office for registration Society registration.
SOCIETY REGISTRATION
For a society registration, the documents required are:
• The name of the society.
• Address proof of the office.
• Identity proof of all the nine members which can be:
- Driving License
- Copy of Passport
- Voter ID
- Aadhaar card
• Two copies of the Memorandum of Association as well as By-laws of the society.
Note: It takes 8 to 10 days for drafting the MoA and By-laws of the Society. Thereafter it takes 21 to 30 days for the Society being registered.
SECTION 8 COMPANY:
For a Section 8 company registration, the documents required are:
• The name of the Company for approval.
• Address proof of the office. It could be an electricity or water bill or house tax receipt.
• Identity proof of all the Directors which can be:
- Driving License.
- Copy of Passport.
- Voter ID.
- Aadhaar card.
• The Memorandum of Association and Articles of Association of the Corporation.
Trust Registration Process
For registering a Trust, the organization requires to comply with the Indian Trusts Act of 1882. In accordance with the act, there are a few requisites that an organization requires to be ready in order to form the trust. The pre-requisites are:
• Name for the Trust.
• Registered Address dedicated to the Trust.
• Objects/Objectives of the Trust.
• One settler of the trust.
• 2 Dedicated trustees of the trust.
• Property of the Trust (Movable or Immovable).
• Once, you have the pre-requisites ready with you, you will need to put together a Trust Deed. To make a trust deed, one would need to furnish the following:
• The deed should be made on a stamp paper of a given value.
• Passport size photographs and identity proof of Seller.
• Passport size photographs and identity proof of the two trustees.
• Passport size photographs and identity proof of two witnesses.
• Seller's signature on all pages of the deed.
Society Registration Process
The procedure of NGO registration as a society in India is administered under the regulations of the Society Registration Act of 1860. The registration/constitution of a Society NGO in India requires two major things
• Memorandum of Association.
• Regulations and Rules of the Society.
To form the Memorandum one would require to fill out the 5 clauses of the Memorandum of the Society:
• Name Clause
• Domicile Clause
• Objects Clause
• Liability Clause
• Capital Clause
• Subscription Clause
Section 8 Company Registration procedure
The registration of an NGO under the section 8 company registration process is like any other corporation registration procedure in India. It needs directors, their digital signature certificates along with MoA and the AoA (Articles of Association).
NGO registration form in Delhi
The Forms for NGO Registration are;
• Form INC 1: NGO’s Name registration
• Form INC 7: Incorporation of Firm Application
• Form INC 8: Declaration
• Form INC 9: Affidavit from each director and subscriber
• Form INC 12: Form should be submitted to acquire a license to run an NGO
• Form INC 13: MOA; INC-15 is declaration through every subscriber towards the MOA
• Form INC 14: Declaration from a practicing Chartered Accountant
• Form INC 15: Declaration from each person making the application
• Form INC 16: License to incorporate as Section 8 company
• FORM INC 22: Registered Address Details
• FORM DIR 2: Consent of Directors
• FORM DIR3: Application to ROC to get DIN
• Form DIR 12: Towards appointing directors of the NGO
Consultant for NGO registration in Delhi
eStartIndia is the professional tech-based online and legal services that help the clients to simplify the procedures of registration of NGO in Delhi and any additional legal compliances and services related to it.
FAQ
1. What are the Different Types of NGOs?
The 3 types of NGO could be formed,
1. A Trust
2. A Society
3. A Section 8 Company as per the Companies Act 2013
2. Why do you need to register an NGO?
There are some reasons in order to select an NGO to get registered in India.
• The most significant one is raising capital from Outsiders, Government Grants, and Donations relating to the welfare as well as the social activities of the NGO.
• Secondly issuing a Bank account, one is required to get Legal Entity registration certificate issued through Government authority
• By means of registering as an NGO, one receives a lawful status and acknowledgment with the Government department.
3. When is an NGO eligible for Government funding?
An NGO is eligible for Government funding after 3 years. However, in some special cases, an NGO could get Government funding even after 1 year if its project gets approved.
4. When can an NGO be blacklisted?
If the NGO is not filing its compliances regularly or it is utilizing the funds for personal interests, then, in that case, the registration of the NGO can be canceled.
eStartIndia is the professional tech-based online legal services providing platform that assists the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any additional legal compliance and services related to the business in India.
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