Non-Governmental Organizations (NGOs) play a pivotal role in society by driving change and supporting underprivileged sections. They operate independently from the government and are crucial in areas like education, healthcare, and environmental protection. In India, registering an NGO provides legal status and comes with benefits such as eligibility for government funding and tax exemptions. This article will guide you through the process of NGO registration, detailing the necessary steps and documentation required.
Types of NGO Registrations
In India, NGOs can be registered under any of the following legal entities:
- Trust: A trust is appropriate for NGOs involved in education and health services. It is formed by at least two trustees.
- Society: A society is membership-based and suitable for clubs, associations, or groups working towards a common purpose. It requires a minimum of seven members.
- Section 8 Company: Under the Companies Act, 2013, this type involves higher credibility and is ideal for large-scale operations. It requires a minimum of two directors.
Step 1: Choosing the Right Entity
The first step in registering an NGO in India is to decide the type of entity you want to establish. This decision should be based on your organization’s mission, the scope of activities, and funding requirements. Each entity has different registration processes, compliance requirements, and benefits.
Step 2: Documentation
The required documents for NGO registration vary based on the type of entity chosen but typically include:
- Identity Proof: PAN Card of all members.
- Address Proof: Aadhaar Card or Voter ID of all members.
- Property documents: If the registered office is owned by the NGO, then property papers are needed. In case of a rented property, a No Objection Certificate (NOC) from the landlord should be included.
For Trusts, a trust deed must be prepared, which lists the trustees, objectives, and mode of management.
For Societies, a memorandum of association and rules and regulations document must be drafted.
For Section 8 Companies, a memorandum of association and articles of association need to be prepared, stating the details about the directors and the business activities.
Step 3: Registration Process
Trust Registration
This process involves submitting the trust deed to the local registrar. The deed should be executed on non-judicial stamp paper, the value of which depends on the state regulations. Once verified, the registrar issues a registration certificate.
Society Registration
To register a society, the founding members must submit the memorandum and articles of association along with affidavits and consent letters from all members to the Registrar of Societies. After scrutiny, the registrar will register the society and issue a certificate of registration.
Section 8 Company Registration
Registration of a Section 8 Company is handled by the Ministry of Corporate Affairs. The process includes digital submission of the memorandum and articles of association, INC-12 form for a license to operate as a non-profit, and other necessary forms through the MCA’s online portal. Once approved, the company is registered and receives a unique Corporate Identification Number (CIN).
Step 4: Post-Registration Compliance
After registration, NGOs need to comply with various statutory requirements such as:
- Regular Meetings: Holding regular trustee meetings or annual general meetings as per the rules set out during the registration.
- Annual Returns: Filing annual returns with the registrar, providing details of the activities and finances.
- Audit Reports: Submitting audit reports if the NGO’s income exceeds a certain threshold.
Benefits of NGO Registration
Registered NGOs gain numerous benefits, including:
- Legal Recognition: Registration provides legal status to the organization, which helps in legal proceedings and dealings.
- Funding: A registered NGO can receive government grants and private donations. It also qualifies for tax exemptions under sections of the Income Tax Act.
- Credibility: Registration enhances the credibility of the NGO with government agencies, donors, and other stakeholders.
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Conclusion
Registering an NGO in India is a detailed process that requires careful consideration of the type of registration, preparation of the necessary documentation, and adherence to compliance requirements. However, the benefits of registration make it a worthwhile endeavor for anyone looking to make a significant impact in the social sector. By following these steps, you can establish a legal and effective NGO that is ready to contribute positively to society.