PRACTICE DETAILS
- Lawyer Mr. Shaman Jain
- Skills Government Registrations
- CATEGORY Government Registration, Tax Registrations & Filings
ABOUT THIS PRACTICE
An NGO or non-governmental organisation is a not-for-profit organization that works either towards a particular cause or for the welfare , betterment and upliftment of the weaker sections of a society . They might be working in different focus areas such as conservation of environment, human or animal rights, better health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art.
There are several NGOs which may be acting as fronts of political or religious interests. The NGOs cannot pay any dividends to their members as they are not-for-profit, however, any kind of profit is further reinvested towards the cause. Funds for an NGO come from donors only and it’s not sure if these donors receive tax breaks or not .In India, an NGO can be established as a trust, section-8 company or a society.
Process for NGO Registration as a Trust
Few states in India have their own Trusts Acts in force to govern the trust registration in that particular state. If the state does not have any Trust Act for itself, then for Trust Registration the provisions of the Indian Trust Act, 1882 shall apply.
- The first step is to draft the Trust deed. Trust deed is non-mandatory but always preferred.
- Address of the registered office of the trust
- Objectives of the trust
- Beneficiaries to the trust
- Rules and Regulations to be followed by the trust
- Address for correspondence & Evidence: recent electricity bill/ telephone bill/ property card of the trust location.
- Tenure of Trustees: Tenure may be fixed as minimum 1 year to maximum 5 years.
- Application for 80G and 12A certificate
- Approach a local registrar & submit the Trust Deed, along with one photocopy for Trust registration. Physical Presence of Settler/s and two witnesses is required at the time of Registration along with Original ID proofs.
- The Registrar retains the photocopy & returns the original registered copy of the Trust Deed.
- The details of trustees - Name, Father's name, Age, Residential Address, Occupation, Contact Number and Email address with two latest photographs application
- Any address roof of the Trustee & the Settlers - Voter I.D / Driving license / Passport.
- Electricity Bill or House Tax Receipt or Water Bill Receipt or Ownership Proof of Property. If the property is rented, then a Rent Deed duly notarized with rent receipts and NOC from landlord on a Rs.10/- stamp paper.
Process for NGO Registration as a Section 8 Company
- Prepare all the required documents for NGO Registration.
- Apply for the DSC and DIN for the proposed Directors.
- Apply for the name of the company which should be according to the rules provided for the name and also check for name availability for NGO Registration
- A Memorandum of Association and Articles of Association has to be drafted.
- An application in INC-12 form has to be made by the individual who is desires to incorporate the Section 8 Company to the Registrar.
- After complete satisfaction of the documents, required details and the fee, the Registrar of Companies will issue the Certificate of NGO Registration
- Identity proofs and PAN of all the Directors/Promoters
- Address proof (Telephone Bill/Electricity Bill/valid Passport/Driving License/Aadhar)
- Latest passport size photographs of all the Directors/Promoters
- Rent Agreement or a Leave &License Agreement, of the registered office, if on rent
- NOC from the owner of the Registered Office
- The Utility Bills of the proposed registered office
- The Consent to act as a Director in Form DIR-2
- Details of the Director's directors in other companies, if any.
Process for NGO Registration as a Society
- Name of the society has to be selected for NGO Registration.
- State Government looks after the Society Registrations. All the required documents with requisite fee as prescribed in 2 copies should be submitted to the Registrar of the Societies of the State where the society shall be situated.
- After careful examination of the documents, an Incorporation Certificate with a NGO registration number shall be allotted.
- The procedure till the allotment of the Incorporation Certificate takes about 1 month of time to be completed.
- A covering letter with a request to register the society under the law.
- A Memorandum of Association
- Copy of detailed Rules and Regulation of the Society
- List of all members of the Society
- Affidavits of the office bearers
- Residential proof of all the members
- Proof of address of the registered address, or NOC from the Landlord
- NGO Registration brings credibility to the organization. Those providing donations will be more inclined towards associating themselves with those NGOs which are registered since NGO Registration gives a sense of authenticity.
- NGO Registration ensures more exposure to the organization. NGO Registration may help a local NGO expand its scope/ area of operations.
- NGO Registration widens the scope of bringing in resources both financial and manual. More volunteers will come forward and that will be beneficial for the NGO.
Broadly, NGO Registration in India can be done under the following methods:
Trust
Register the NGO as a trust so as to register it as an NGO. This method is generally used by NGOs who work towards eradicating poverty, providing education and medical relief. One must be aware of the fact that trusts are irreversible which means that it is not possible to change or terminate them without beneficiary’s permission .
Though no national law governs trusts, States like Maharashtra and Gujarat have Public Trust Acts to look into the affairs of NGOs.
Section 8 Companies
A Section 8 Company holds restricted liability and it doesn’t exist to generate profits . It is usually constituted for promoting science, art, commerce, charity, religion or any other purpose that is useful to society.
section 8 companies have more benefits in comparison to Societies and Trusts . They can stand firm in legal aspects and hold better credibility among government bodies and donors.
Societies
Member based establishments which are set up for charitable purposes are known as Societies . A governing body or a managing committee runs such NGOs.
All societies fall under the preview of Indian Law unlike trusts. Societies in India fall under the Societies Registration Act, 1860.
