Step-by-Step Process for NGO Registration in India 2024

Overview

Non-government Organizations (NGOs) are important in the socioeconomic development of India. They work cooperatively regardless of the government and concentrate on different themes like education, health, environment and human rights. Determining the type of NGO and complying with the minimum requirements, required documents, registration procedure and fees are important for successful NGO Registration in India. This article discusses all the important factors for a smooth process.

Types of NGO Registration in India

There are three primary legal structures under which you can register your NGO in India:

• Trust: This is governed by the Indian Trust Act of 1882. Trusts tend to be favoured for charitable causes because they have a relatively easy registration procedure and because of their pliable structure.

• Society: These are regulated under the Societies Registration Act 1860. Societies are good for networks with a wider audience and with educational activities, art, or culture as their focus.

• Section 8 Company: Registered as per the Companies Act, 2013. They are Non-profit ventures, but their major focus is to offer charities. They are more reliable and structured, being good options for bigger NGOs.

Minimum Requirements for NGO Registration in India

Each type of NGO has specific requirements, and these are:

Trust

• Settlor: The settlor is the individual who establishes the trust and places the assets.
• Trustees: A minimum of two trustees are required.
• Beneficiaries: The individuals or groups who will benefit from this organization's Trust
• Deed: A legal document summarizing the purpose of the trust, the activities and management.

Society

• Members: A society must have a minimum of 7 members.
• Memorandum of Association (MoA): States the community's name, purposes, and regulations.
• Rules and Regulations: Sets down the internal governance of the society.

Minimum Requirements Section 8 Company Registration

• Directors: This type of registration requires at least two directors.
• Memorandum of Association (MoA): This outlines the company's aims and operations.
• Articles of Association (AoA): It defines the company's internal management and governing body.
• License Under Section 8: It must be issued from the Central Government.

Documents Required for NGO Registration

The required documents will depend on the chosen structure:

Trust

• Trust Deed
• Address proof (of the registered office)
• Settlors and Trustees’ Identity Proof (This includes PAN Card, Aadhaar Card, etc.)
• A No Objection Certificate (NOC) from the property owner (if applicable)

Society

• MoA and Rules and Regulations
• Address Proof (of the registered office)
• Identity Proof of all society Members (PAN Card, Aadhaar Card, etc.)
• Covering Letter
• Declaration by the President and Secretary

Documents Required Section 8 Company Registration

• MoA and AoA
• Address Proof (of the registered office)
• Directors’ Identity Proof (PAN Card, Aadhaar Card, etc.)
• Professional Declaration (Chartered Accountant, Company Secretary, or Cost Accountant)
• Other required documents by the Ministry of Corporate Affairs.

Process of NGO Registration

The registration process varies slightly for each type of NGO:

Trust

• Draft the Trust Deed.
• Make sure the business gets registered with the local office of the Registrar of Trusts or the Charity Commissioner.
• Obtain a registration certificate.

Society

• Draw up MoA and R & R.
• Also, make sure you enclose the said forms and documents together with the application fee to the Registrar's office.
• Obtain a registration certificate.

Section 8 Company

• Choose a name and reserve that name for the company.
• Acquire a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for its directors.
• Submit MoA, AoA and other relevant documents to the Registrar of Companies.
• Secure the Certificate of Incorporation next and apply for the license under the provisions of Section 8 of the Companies Act, 2013.

Benefits of Registering an NGO under Section 8 of the Companies Act, 2013

Registration of an NGO as a Section 8 Company implies that the organization can follow the provisions of the Companies Act, 2013. Here are a few benefits:

• Tax Benefits: Section 8 Companies can get tax deduction benefits under tax Section 80G of the Income Tax Act, 1961. Contributions made to such companies can be deducted from taxable income. It motivates people to donate which increases the tax funding of such activities.

• Stamp Duty Exemption: Such undertakings are not charged under the Income Tax Act for the stamp duty. Those savings from tax exceptions can be put back into the organization's growth and operation.

• Limited Liability: Participants of the Section 8 Company are confined to the liability based on his or her shares. Members will not be held individually liable to pay for the financial loss above their prescribed share as their participation in the NGO’s operations.

• No Minimum Capital Requirement: Section 8 Company does not require any minimum share capital. So it contributes to fundraising and makes it easier to start and maintain.

Wrapping Up

Starting an NGO in India is a multi-staged process and the type of NGO you choose may alter the process. The due diligence process ensures you comply with the legal requirements. This is a comprehensive guide to the NGO registration process in India for the year 2024. If you need any further help with the process, get in touch with the PSR Compliance team.