In India, a trust, Sangathan, Sangh, Society and non-profitable company all full under the umbrella term of NGO. All of these said organization, if they are not for profit, are exempted from filing Income tax. An NGO can be registered under 3 Acts. Companies Act, Indian Societies Act, Public Trust Act of all different states.
Legislation Governing Registration of NGO’s
The Union of India and the relevant governing body permits the registration of an NGO under 3 laws.
- Section 8 under the Companies Act, 2013
- Society under The Societies Registration Act 1860
- Trust under the Public Trust Act of the individual states.
All the aforementioned laws define the formation of a different organization. Namely, A not for profit, A Society and A trust.
Benefits of Registration of NGO
- The legal status obtained after registration of the Non-Profit makes sure that they are accountable for all funds collected by the organization.
- A registered NGO thinks, develops and functions in a systematic manner. In a registered charitable fund, the money is received under the name of the organization and is used for the benefit of others through the operations of the NGO. In an unregistered fund, the money might be received in anyone’s name and could be used for private profit.
- An organization registered as an NGO is bound by legal, social and ethical parameters of the society.
- Having a bank account is a requirement for running a company. In order to open an account, Registration of the NGO is compulsory.
- Registration of the organization as an NGO helps in getting tax exemption once registered with the Income Tax Department.
Registration of NGO’s
Prior to registration, certain documents need to be submitted to the relevant authorities.
Trust Registration
- For registration as a trust, the following documents are necessary
- Electricity or water supply bill with a permanent address.
- Identity proof of 2 members of the company–Driving license passport, etc.
It would take about 8/10 days for the registration to be completed under the Indian Trust Act, 1882. For the deed to become valid throughout the country. A presentation has to be delivered to the registrar’s office.
Charitable Trust Registration Procedure in India
As per Indian trust Act following are the minimum Requirements as a Trust in India;
- Clarity as to for what purpose it is created
- Intention to create a Trust
- Clear definition of the beneficiary
- Trust property assigned by the assignee
Registration Procedure:
The first step includes is to opt for an appropriate name for your NGO. Secondly, ascertain the settler, minimum 2 trustees and a clear definition of who will be the beneficiary. The next step includes the preparation of Memorandum of Association and a proper trust deed containing all the key provisions and clauses. The Trust Deed must be executed on stamp paper of sufficient value based on the value of the property assigned to the Trust. Finally, the Trust Deed must be registered with the Local Registrar of the area in which the registered office of the NGO is located.
Society Registration
Prior to registration, certain documents need to be submitted to the relevant authorities.
- Name of the society
- Address proof of the office space
- Identity proof of all members of the company – Driving license, passport,
- Two copies of Memorandum of Association and By-laws of the organization.
Society Registration Procedure in India
If you are planning for registering an NGO in the form of a Society you are required to follow simple steps.
Registration Procedure:
The first step is to choose an appropriate name for the NGO. Secondly, form a governing body of the proposed Trust. The next step includes preparing the Memorandum of Association including all the rules and regulations for the NGO registration and operation. The last step includes the submission of every document to the Registrar of Society of the state as per the jurisdiction in which the registration has to be done.
- Company Under 8 of the Companies Act
Prior to registration, certain documents need to be submitted to the relevant authorities.
- Company name for prior approval
- Identity proof of the directors of the organization
- Memorandum of Association and Articles of Association of the Company.
Company Registration Procedure in India (Section 8)
If you are planning for registering an NGO in the form of a Section 8 Company, then there are certain additional formalities that are required to be met with.
Registration Procedure:
The first step is to choose an appropriate name for the NGO. The one condition which has to be kept in mind is that the proposed name should not resemble any already registered Company or Limited Liability Partnership. This proposed named must be filed for reservation through Reserve Unique Name facility available on the MCA portal. Once the name is approved it requires you to prepare the MOA and AOA of the organization. Once all the documents are prepared to apply to a respective Registrar Of Companies for License in Form INC-12. After review by the ROC, the license is issued. After proper verification of the application Certificate of Incorporation (COI) will be issued. This COI will contain the Company Identification Number (CIN) along with the Company’s PAN & TAN number.
How will we assist you?
- We will provide with complete consultation with choosing the registration type according to what would suit your organization in the best way possible.
- Provide assistance with all the necessary paperwork and handle the entire procedure while keeping you in the loop the entire time