3 ways of NGO Registration in India

Posted by Enterslice India on October 6th, 2018

To setup an NGO in India, you must have genuine desire to help others. For NGO registration in India, you have to pass through a legal process and start making contacts with minded people of society. To run an NGO, funds must be arranged and proper plans must be there by preparing budget proposals.

NGO is not for profit therefore there should be enough transparency in its dealings. Without expecting any profit, functions of the NGO are carried out for the welfare of the society. You must have a strong vision and dedication to serve the society. NGO (Non-Government Organization) is a type of organization which works for the charitable purpose and not for profit.

There are mainly 3 ways of NGO registration in India:

1. Trust Registration as per Indian Trust Act, 1882
2. Society Registration as per Society Registration Act, 1860
3. Section 8 Company Registration as per Companies Act, 2013

Now let’s discuss about the NGO registration under the above mentioned three heads.

v  Trust Registration in India

In India, NGO registration can be done under various acts. To setup an NGO by trust registration there is a requirement of minimum two persons, however there is no prescribed limit for maximum members in trust registration. In Maharashtra, trust registration is done as per Maharashtra Public Trust Act. In trust registration, trust deed is the main component as it describes the powers assigned to the members.

v  Society Registration in India

Society registration is done as per the Society Registration Act and there is a requirement of minimum seven members. At the time of society registration you must make sure that proposed name have never been used before in the same office you are applying for society registration. Under this, by laws are a very important component and it must be as per the legal format.

v  Section 8 Company Registration

Section 8 Company registration is done in order to promote non-profit activities such as activities concerned with trade, commerce, art, religion, education, environment protection, social welfare, sports and research, etc. The income generated from the operations of the company is applied towards the promotion of the object of the company and it cannot be distributed as dividend among the members of the company. If you want to incorporate section 8 company as a private limited company then there is a requirement of minimum two directors and members however maximum 200 members can be appointed. Whereas if you want to incorporate a company as a public limited company then there is a requirement of minimum 3 directors and there is no limit for maximum members. In case of section 8 company registration, there is no requirement of minimum paid up share capital.

Forms required to be filed for Section 8 Company Registration in India

Note: Now there is no need to file separate application for obtaining DIN, it can be directly applied through SPICE form.

Step by Step procedure for Section 8 Company Registration

Step 1: Initially, proposed directors of the section 8 company have to obtain DSC (Digital Signature Certificate) from the certifying authority.

Step:2 After obtaining DSC for all the proposed directors of the company, RUN form is filed with the ROC (Registrar of Companies) for name approval along with the prescribed fee of Rs. 1000/-. In RUN form maximum two names can be mentioned out of which one will be allotted by the ROC on the basis of the availability of the name.

Step: 3 After name approval, form INC 12 is filed with the ROC in order to obtain section 8 company license along with the necessary below mentioned attachments:

1. MOA in form INC 13
2. AOA of the Company
3. Declaration by professional in form INC 14
4. Declaration by each person making application in form INC 15
5. Estimated Income & Expenditure for the period of next 3 years

Note: It must be ensured that subscription page of the Memorandum and Articles of Association of the company shall be signed by each subscriber along with their details such as name, address, and occupation, in the presence of at least one witness who shall attest the same.

Step: 4 After verification of the above mentioned documents, ROC will issue the license in form INC 16 to section 8 company.

Step: 5 Once the license is obtained, incorporation application in SPICE form will be filed with the prescribed fees along with the necessary below mentioned attachments:

1. An affidavit from all the subscribers in form INC 9
2. KYC documents of all the directors
3. Consent of all the directors in form DIR 2 along with the interest in other entities
4. Proof of registered office premises
5. Rent agreement and NOC in case of rented property

Step: 6 After verification of the incorporation application, Certificate of Incorporation will be issued along with the Company Identification Number (CIN).

Note: There is no need to file DIN application separately as DIN (Director Identification Number) can be applied directly through SPICE form.

For more information, you may contact us.

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