How to Start a NGO REGISTRATION

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Overview of NGO Registration in India

An NGO (Non-Governmental Organization) is a non-profit entity that operates independently, focusing on social, environmental, or advocacy causes. In India, NGOs can be registered as a Trust, Society, or Section 8 Company, depending on their objectives and activities.

NGOs are involved in various initiatives aimed at benefiting society, such as environmental conservation, human rights, social advocacy, and community development. They work to bring about social or political change on a larger scale and play a vital role in societal progress and citizen engagement. There are three primary legal structures for registering an NGO: (1) Trust, (2) Society, and (3) Section 8 Company.

Advantages of Registering an NGO in India

Here are some key benefits of registering your NGO in India:

  1. Tax Exemption Benefits
    Registering as an NGO under the Companies Act, 2013 allows access to tax exemptions, helping save on taxes and redirect funds into new projects.

  2. Right to Acquire Assets
    Registered NGOs can purchase land, own fixed assets, and assume liabilities under their name, something unregistered organizations cannot do.

  3. No Minimum Share Capital Requirement
    NGOs do not need a minimum share capital to operate, and donations directly fund their activities, eliminating the need for large initial investments.

  4. Personal Liability Protection
    By registering assets in the NGO's name, founders and trustees are protected from personal liability in case of legal issues like bankruptcy or foreclosure.

  5. Ownership Transfer Flexibility
    Registered NGOs under the Income Tax Act, 1961 can transfer ownership or claims on earned interests without restrictions.

  6. Legal Entity Status
    Registered NGOs can engage in legal transactions, sue or be sued, and have a more professional relationship with the community.

  7. Stamp Duty Exemption
    Section 8 corporations that are non-profits are exempt from stamp duty under the Income Tax Act, which saves on taxes that can then be invested into furthering the NGO's goals.

  8. Structured Financial Planning
    With NGO registration, you can establish a tax-free structure, making it easier to plan finances and avoid tax liabilities.

  9. Organizational Stability
    Registered NGOs are perceived as stable entities by the public, which fosters confidence among donors, government bodies, and other organizations.

  10. Perpetual Succession
    Registered NGOs have a continuous existence, unaffected by the departure or death of trustees or founders, and can only be dissolved by a court order.

  11. Credit Accessibility
    Registered NGOs can access credit and loans from banks and financial institutions, facilitating funding for projects, land purchases, or assets.

  12. Name Protection
    Once registered, the NGO’s name is protected, preventing other organizations from using the same or a similar name.

  13. Ability to Open a Bank Account
    Registration enables the NGO to open a corporate bank account, proving its legitimacy and allowing for transparent donation management.

Classification of NGOs in India

NGOs in India are classified based on their orientation and operational level:

  • By Orientation:

    • Charitable Orientation
    • Service Orientation
    • Participatory Orientation
    • Empowering Orientation

  • By Operational Level:

    • Community-Based Organizations
    • City-Wide Organizations
    • National NGOs
    • International NGOs

Different Types of NGO Registrations in India

In India, individuals can engage in social activities without formally establishing an organization. However, when aiming to create a group with participants, activities, and resources, proper management and legal compliance are essential.

There are three primary ways to register an NGO, each governed by specific laws:

  1. Trust Registration under The Indian Trust Act, 1882
    This involves registering a trust under the Indian Trust Act, which is suitable for NGOs focused on charitable, educational, or religious purposes.

  2. Society Registration under The Societies Registration Act, 1860
    This type of registration is ideal for NGOs with a specific objective such as promoting social causes and welfare activities. It is typically chosen for voluntary associations.

  3. Section 8 Company Registration under The Companies Act, 2013
    This registration is for NGOs that operate with a focus on social welfare, education, or other charitable activities and need the structure of a corporate entity. This allows for the organization to have a legal status and operate like a company without the aim of profit distribution.

 
 

Documents Required for NGO Registration

Before registering an NGO, the following documents are essential for each type of registration:

For Trust Registration:

  1. Trust Deed outlining the purpose of the trust.
  2. Trustee and Settlor Details: Self-attested copies of ID, address proof, and occupation details for both.
  3. Trust Deed with Correct Stamp Value.
  4. Photographs of the trustee and settlor.
  5. PAN Cards of the trustee and settlor.
  6. Proof of Registered Address: If the property is rented, a No Objection Certificate (NOC) from the landlord is required.

For Society Registration:

  1. Society Name.
  2. Proof of Working Space (address verification).
  3. Identity Proof for all nine members.
  4. Two Copies of the Memorandum of Association and By-laws.

For Section 8 Company Registration:

  1. Identity Proof and Address Proof (including PAN Card).
  2. DIR-2: Consent of Directors along with identity and address confirmation.
  3. Utility Bills: Not older than two months.
  4. Proof of Registered Office Address: If the office is not rented, an NOC is required.
  5. INC-14: Declaration by Professionals (affidavit about deposits).
  6. INC-15: Promoters' Declaration (both on stamp paper, duly notarized).
  7. Annual Income Estimate.
  8. Articles of Association and Memorandum of Association.
  9. Details of the Promoters and Members of the proposed company's board of directors.
 
 
 
 

Procedure for Registering a Non-Profit Organization in India

To register a non-profit organization (NGO) in India, applicants must adhere to various rules and procedures based on the type of NGO they wish to establish: Trusts, Societies, or Section 8 Companies. Below is an overview of the registration procedures for each type:

1. Trust Registration Procedure

  • Step 1: Choose an Appropriate Name
    Select a suitable name for the trust, ensuring it is not listed under the restricted names of the Emblems and Names Act, 1950.

  • Step 2: Draft the Trust Deed
    The Trust Deed should be drafted, outlining the purpose and details of the trust. This document must be submitted to the Registrar during registration.

  • Step 3: Choose the Settlers and Trustees
    The trust must have at least two trustees, and the settlers (those establishing the trust) should be designated.

  • Step 4: Prepare the Memorandum of Association
    This document acts as the trust’s charter and is essential for registration.

  • Step 5: Pay the Registration Fees
    The required registration fee should be paid as per the applicable rates.

  • Step 6: Obtain the Certified Copy of the Trust Deed
    Once submitted, the certified copy of the Trust Deed can be collected from the Registrar’s office after one week.

  • Step 7: Submit the Trust Deed to the Registrar
    After receiving the certified copy, submit the original Trust Deed for registration with the local Registrar.

  • Step 8: Obtain the Certificate of Registration
    Once the Registrar verifies the documents, the certificate of registration is issued within 7 business days.

2. Section 8 Company Registration Procedure

  • Step 1: Apply for a Digital Signature Certificate (DSC)
    The first step is to obtain a Digital Signature Certificate, which will be used for signing electronic forms.

  • Step 2: Reserve the Name using SPICE+
    Use the SPICE+ form for name reservation. Ensure the name contains specific words related to non-profit activities (e.g., "Federation," "Chambers of Commerce," etc.).

  • Step 3: Complete SPICE+ Part A Form
    Fill in Part A of the SPICE+ form for name reservation and incorporation, which also includes the Director Identification Number (DIN) application.

  • Step 4: Submit SPICE+ Part B
    After Part A, submit Part B for incorporation. This includes the Memorandum of Association (MOA), Articles of Association (AOA), and other necessary documents.

  • Step 5: Prepare the MOA and AOA
    Complete the MOA and AOA forms with all the required details and attach the necessary Digital Signatures of the subscribers.

  • Step 6: Fill in the AGILE PRO Form
    Complete the AGILE PRO form, which includes options for GST registration, EPFO/ESIC compliance, and bank account opening.

  • Step 7: Submit INC-9 Form
    This form contains the declaration from the subscriber or first director and must be filled out and signed.

  • Step 8: Submit Documents to the MCA
    Submit all the completed forms and documents to the Ministry of Corporate Affairs (MCA) with the appropriate Digital Signatures.

  • Step 9: Conduct Pre-Scrutiny Check and Pay Fees
    Perform a pre-scrutiny check and pay the required registration fees.

  • Step 10: Obtain the Certificate of Incorporation (COI)
    Once the Registrar verifies all details, the Certificate of Incorporation is issued.

3. Society Registration Procedure

  • Step 1: Choose a Unique Society Name
    Select a name that complies with the Societies Act, 1860, ensuring it is distinct and not associated with government patronage.

  • Step 2: Prepare the Memorandum of Association and Rules
    The founding members must sign the Memorandum of Association and Rules and Regulations. These must be notarized by an oath commissioner, gazetted officer, or magistrate.

  • Step 3: Prepare Required Documents
    Collect the necessary documents, including:

    • Society name.
    • Proof of the working space address.
    • Identity proof of all members.
    • Two copies of the Memorandum of Association and By-laws.

  • Step 4: Submit the Application
    Submit the signed Memorandum and Rules along with the required documents to the Registrar of Societies in your state.

  • Step 5: Obtain Society Registration
    After reviewing the application, the Registrar will issue the registration certificate for the society.

Conclusion

Registering an NGO involves following specific procedures based on the type of registration (Trust, Society, or Section 8 Company). Ensuring proper documentation and compliance with the respective laws is crucial. Professional assistance is often recommended to navigate the process smoothly and avoid any legal complications.

For a more efficient registration process, it is advised to consult with experienced legal professionals familiar with NGO registration and compliance requirements.

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