NGO stands for “Non-Profit Organisation”. NGOs do not have government intervention in their working — they operate without government control. The motive of an NGO is not earning profit but is more social and political in nature. NGOs are not commercial but co-operative. NGOs are generally formed through funding and their activities are carried out by volunteers. NGOs may operate in many kinds of activities, like:
- Protection of human rights
- Environment conservation
- Women empowerment
- Human health
- Education
The profits earned by NGOs are not distributed among their members but are utilized to carry out the NGO’s activities.
Advantages of NGO Registration
Non-Profit in Nature
The primary motive for setting up an NGO is “not for profit” — NGOs are focused more on a social cause.
No Government Intervention
NGOs work without government interference. They are directed and controlled by the members of the NGO and work independently for social and political causes.
No Anti-Social Activity
Although there is no government intervention in the working of NGOs, they cannot involve themselves in criminal or anti-social activities.
Social Value Status
As NGOs are established purely for a social cause, they gain high status and respect for their social value. NGOs are generally formed for helping needy people and promoting the overall welfare of society.
NGO Registration in India
In India, NGOs are registered in 3 ways:
- Trust
- Society
- Section 8 Company
Procedure for Registration of Trust, Society & Section 8 Company
Trust Registration
- Prerequisites before trust registration — 2 trustees, 1 settlor, and property of the Trust, whether movable or immovable.
- Prepare a trust deed, which is to be executed on stamp paper; the value of the stamp paper shall depend on the valuation of the property.
- Register the Trust Deed along with one photocopy with the local Registrar.
- The Registrar keeps the photocopy and returns the original Trust Deed.
Minimum Requirements for Registration of Trust
- 1 passport size photo & proof of identity of the settlor
- 1 passport size photo & proof of identity of the two witnesses
- 1 passport size photo & proof of identity of the two trustees
FAQ – Trust
Who is the governing authority of a Trust?
The governing authority of a trust is the Deputy or Assistant Charity Commissioner within its jurisdiction.
Can a trust be allowed to generate profits?
Although trusts are established as “non-profit organisations”, it does not mean a trust cannot generate profit. However, the profit generated shall be utilized only for charitable purposes and not distributed as dividends.
Are trusts required to conduct an Annual General Meeting?
From a legal view, there is no necessity to convene an Annual General Meeting.
Can trust documents be inspected by anyone?
Not all documents, but yes — as per legal provisions there are a few documents which are open for public inspection, subject to certain criteria and payment of fees.
Society Registration
- Choose the name of the society. While choosing the name, be careful that it is not identical or similar to the existing name of any society as per the Societies Registration Act, 1860.
- The Memorandum of the society, containing rules and regulations, shall be signed by all the founders, witnessed by the Oath Commissioner, duly notarized with stamp and complete address.
- Application for registration can be done either with the Registrar of Societies at the state level or the District Magistrate / Registrar of Societies at the district level.
- Submit the application along with the documents below.
- Memorandum of Association
- Consent letters of all the members
- Authority letter duly signed by all the members
- An affidavit sworn by the President or Secretary of the Society, executed on non-judicial stamp paper along with court fees
- A declaration by the members of the managing committee that the funds of the society will be used only for the purpose for which the society is being formed
Note: The above documents must be submitted in duplicate to the Registrar of Societies.
Minimum Requirements for Society Registration
- 1 passport size photo & proof of identity of all the members of the Society
- 1 passport size photo & proof of identity of the witnesses
FAQ – Society
How many minimum members are required to register a Society?
Minimum 7 members are required as per the Societies Registration Act.
Can I opt for a Society name resembling an existing established name?
No.
Can anyone other than Society members inspect documents of the Society?
Yes — on payment of the prescribed fees, anyone can inspect the documents of the Society, since they are public documents.
Can I dissolve a Society once formed? If yes, what is the procedure?
A society once formed may be dissolved by passing a special resolution, giving prior intimation to the Registrar, and following all appropriate steps for dissolution as per the Societies Registration Act.
Section 8 Company Registration
- Apply for DIN and DSC of the proposed directors.
- Apply for name availability and make sure the name applied for does not resemble an existing company.
- Once the name is approved, apply to the Registrar of Companies with all documents for the Certificate of Incorporation of the company.
- Obtain the license from the Registrar by filing form INC-12.
- Follow up with the Ministry of Corporate Affairs.
Minimum Requirements for Section 8 Company
- Members: Minimum 2 members are required
- Capital: There is no capital adequacy requirement
- DIN: For 2 members
- DSC: Digital Signature Certificate will be required for all directors
- Address: Address proof like rent agreement / light bill for the registered address is required
- Indian Resident: A minimum of 1 director must be a resident of India
FAQ – Section 8 Company
What is a Section 8 company?
A Section 8 company is basically a non-profit organization and can be registered as a Private Limited Company under Section 8 of the Companies Act, 2013.
Which types of activities are covered under a Section 8 Company?
A Section 8 Company can be incorporated to promote science, arts, research, sports, social welfare, education, charity, protection of the environment, etc.
What are the documents required for registration of a Section 8 Company?
- Proof of identity of all the directors
- Proof of address of all the directors
- NOC from the owner of the registered address of the company
- PAN cards (mandatory)
- Identity proof and address proof from the landlord of the company
Who is the governing authority for a Section 8 Company?
The Ministry of Corporate Affairs is the governing authority for a Section 8 Company.
What We Offer
- Name Approval
- Certificate of Incorporation
- AOA & MOA
- PAN Registration
- TAN Registration
- Digital Signature
- 3 DIN of Directors
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