The word NGO is India refers to Non-Government Organization. In an NGO, business and government are removed from the framework. The main objective of a Non-Government Organization is to work for the betterment of society or work towards uplifting the underprivileged sector of the society, and then by completing NGO registration process this type of entity becomes evident in the eyes of the law.
Overview of NGO Registration
The term NGO or Non-Government Organization is used as an umbrella to cover all legally registered entities that seek philanthropic and charitable funds for uplifting the underprivileged section of the society and betterment of society without the intention of earning profit from it. Though, there is no such legal entity as a Non-Government Organization (NGO). NGO registration can be done by registering an entity as a Society, a Trust, or Section 8 Company. A person needs to understand the framework of NGOs who want to do NGO registration. There are several tax benefits available to NGOs and to the donors of such NGOs, but to avail them, NGO registration is necessary. NGO registration makes this type of entity evident in the eyes of the law.
Key Features of NGO Registration in India
A Registered Non-Government Organization is independent of the State.
A Non-Government Organization is a self-governed entity governed by a group of individuals, a board of trustees, or governing council.
NGOs' primary objective is towards the well-being of society at large and the betterment of all communities living in India, primarily the underprivileged sector of the society.
A Non-Government Organizations principal goal is not to earn a profit. Even if they earn profits that profit is used for completing the objectives of the NGO, the members of the society cannot use profits for personal use.
NGOs impact poverty, arts, education, environment, medicine, and other areas that are not sustainable through a for-profit business structure.
NGO Registration can be done by registering an entity as a Society, Trust, or a Section 8 Company.
Ways of NGO Registration in India
There are three ways for registering an NGO as a legal entity in India:
Trust
The Indian Trust Act of 1882 describes a Trust as an establishment where the Trustor comes to a decision to transfer the right of his/her property to a second party known as Trustee so that the third party known as the beneficiary can take benefit from it. The process of registering a trust begins with drafting a trust deed on a non-judicial stamp paper.
Documents required for NGO Registration Process as a Trust
For NGO Registration Process as a Trust, the following documents are necessary.
Address proof of the registered office
Identity proof of members of the Trust
What is the NGO Registration Process as a Trust?
Several states follow the Indian Trust Act, 1882 for Trust Registration.
An applicant is required to draft the Trust Deed with the following details:
Name of the Trustees
Name of the Trust
Address of the Trustees
Address of the Trusts' registered office
Beneficiaries and Objectives of the Trust.
Tenure of the Trustee
Rules and Regulations followed by the Trust.
Application for 12A and 80G Certificates
Submit the trust deed to the Registrar along with a certified copy of the trust Registration.
The Registrar of Trusts will keep the photocopy, and the applicant will receive a copy of the Trust Deed.
Society
Societies are, in general, are established for promoting literature, fine arts, science, diffusion of useful knowledge, instruction, maintenance of reading rooms, libraries, public museums and other works of art, mechanical and philosophical inventions, collection of natural history, instruments or designs, etc. Societies or Associations are formed to help further these grounds since they work on a non-profit objective. The call for a legal body is to handle, own, and possess the assets and finances to accomplish promotional or liberal objects, as laid behind by the donors, is the result of these actions. Furthermore, a society can be shaped to comprehend this end.
Documents required for NGO Registration Process as a Society
The following documents are necessary for NGO Registration Process as a Society
Name of the society
Address proof of the society’s’ office
Identity proof of all the members of society
Two copies of MoA and by-laws of the society
What is the NGO Registration Process as a Society?
The NGO Registration Process as a Society is as follows-
The applicant has to select a name for the society.
The applicant has to submit all the documents with the requisite fees to the Registrar.
After the verification of documents, an Incorporation certificate is granted.
Within a month the applicant will receive a registration certificate.
Section 8 Company
A Non-Government Organization can be registered as a section 8 company following rules and regulations of the Companies Act of 2013. Section 8 company registration is the mode of amalgamation of an NGO as per the Companies Act's provisions, 2013. Any company registered as per the provisions of section 8 can be registered for promoting science, commerce, art, sports, education, technology, social welfare, charity, religion, social research, and protection of the environment, etc. Subsequently, the new rule has made the registration and license process for section 8 company trouble-free. An individual who wants to register a section 8 company can do it by filing a single application Form SPICe+ on the Ministry of Corporate Affairs (MCA).
Documents required for NGO Registration Process as a Section 8 Company
The following documents are essential for NGO Registration Process as a Section 8 Company:
Company name approval
Address proof of the office
ID proof of all the directors
MoA and AoA of the company
What is the NGO Registration Process as a Section 8 Company?
The NGO Registration Process as a Section 8 Company is as follows-
The applicant has to select a name for the section 8 company. The name should be as per the prescribed rules.
Draft AoA and MoA.
File a registration application for incorporation of the Section 8 Company.
The license can be applied by filing an incorporation form.
After verifying the documents, the Registrar of the Companies will grant the Certificate of Incorporation along with the license.
Conclusion
Non-Government Organizations are important for a country like India as the Government alone cannot provide the underprivileged section of society. By completing NGO registration process these charitable entities becomes evident in the eyes of the law. A person needs to understand the framework of NGOs who want to do NGO registration.