If you are planning to start an NGO then you should know about all the rules and regulations of How to Register an NGO in India and other important things.
But first, let's talk about what an NGO really is? And what documents do you need for its registration?
The NGO operates at various levels and with a variety of Agendas. The NGO registration process may be limited to a single village or may be spread across the country in several cities.
The agenda may vary from health concerns to the abolition of social ills. It is a philanthropic organisation.
As a result, profits are only used to further the agenda, and no dividends are given out to members.
What is an NGO
NGO or non-governmental organisation is a non-profit organisation that works for the welfare of society without any government influence in it. It works on Donations and Charities.
Anyone who wants to help society can start an NGO, but there are certain rules and regulations which you should know about before learning how to register an NGO in India.
If you are thinking of starting your NGO in India and looking for an NGO registration process, there are several methods by which you can register your NGO.
Below in this article, you will know all the details about registering an NGO in India.
How to Register an NGO in India
In India, to start an NGO, there are certain things that you must take care of before starting the NGO Registration process.
Step 1: You will first have to decide what your NGO stands for. That means you have to decide which problem your NGO will spread awareness about, work on, etc.
Step 2: Running an NGO will not be a one-man show. That is why you will require people who are passionate about the same cause as you are and are dedicated. Having a good team will help you a lot when it comes to administrative as well as campaign work.
Step 3: The name of an NGO is a very important decision you must make. It has to be something that is not too hard to remember but also encapsulates everything your NGO stands for.
Step 4: Logistics of the NGO need to be drawn. So you have to write down everything about your NGO. That includes the cause the NGO stands for, the details about the team, the address of the NGO, and, if possible, the source of funding.
Step 5: This is the most crucial step in forming an NGO. This is where you register your NGO. With the necessary forms filled, criteria met, and documents prepared by you, you have to register your NGO as a Society, a Trust, or A Section 8 Company.
Step 6: This is where you create a wide network with the people and collect the necessary funds.
Documents Required for NGO Registration Process
There are particular documents that you need to fill out when you are registering your NGO. Those documents are:
- Memorandum of Association: This document contains the name of the NGO, area of work, office address, name of the members, etc.
- Rules and Regulations: This document states all the aims and objectives of the NGO. It also contains details about the members, details of the membership, the promoters, the power and responsibilities of office bearers, how membership might get terminated, etc. This document is also known as the Article of Association.
- Identity proof: Aadhar card, PAN card, Voter Card, Driver’s Licence, and copy of passport are required.
- Address proof: This is the proof of the address where the office is situated. A water bill, electricity bill, or a tax receipt to the address needs to be submitted.
Types of NGO Registrations in India
To register an NGO in India, there are specific rules which must be followed. Also, to make how to register a ngo in India simpler, there are several methods available.
There are 3 ngo registration process methods available by which you can register an NGO in India. these 3 methods are as follows-
- Registration of Societies under the Societies Registration Act of 1860
- Trust Registration under the Indian Trust Act of 1882
- Registration of Non-Governmental Organisations in India
NGO Enrolment as a Society
Society is a subset, that is, a part of an NGO. A society is composed of 20 to 30 people and usually works on a smaller scale than an NGO.
Usually, Societies focus on charitable events, advocate the learning of science and art, and maintain libraries and museums.
It also supports mechanical and philosophical inventions and promotes natural history collection, to name a few.
Documents Required For NGO Registration in India as a Society
- Selecting a Distinctive Name for the Society: Remember that the Societies Act of 1860 requires that name to make your mark when selecting a distinctive name. Furthermore, the applicant's proposed name must not imply the support of the Government of India/any State or attract the provisions of the Emblem & Names Act, 1950.
- Create the Moan: It is critical to draft the Society's Memorandum. Each founding member must sign the Memorandum and the Society's Rules and Regulations.
- Gather All Documents: An applicant must prepare all of the necessary documents for Society Registration.
- Submit Application: The signed Memorandum and Rules & Regulations must be filed with the Registrar of Societies in the respective state, along with the prescribed fees.
- Issuance of Society Certificate: Once all the documents have been submitted and the Registrar approves the application, the certificate will be issued.
- NGO Registration as Section 8 Company
When an NGO is registered as a Section 8 company, it is governed by the Board of trustees.
In these companies, any profit earned goes for the cause, and none of the dividends is given to the members.
However, registering an NGO as a section 8 company gives certain advantages, such as better legal standing, more recognition, and higher credibility amongst donors, to mention a few.
Documents Required For NGO Registration in India Section 8 Company
- Name Reservation via Spice+: The procedure for reserving a name for Section 8 Company is the same as for other companies. Spice+ Form is used for company name reservation, which includes all rights from name reservation to post-registration compliances.
- The Section 8 Company applicant must enter the name they wish to reserve for Section 8 Company as long as the name includes words like Association, Chambers, Association, Federation, Confederation, Forum, Federation, and so on.
- Submit the Spice+ Part A Form: The applicant must submit this form.
- Submit Spice+ Part B: Following that, file the Spice+ Part for incorporation purposes in the format for filing the related Form, such as
- Creating the MOA and AOA: After submitting the Spice+ Form, the applicant must submit the MOA and AOA, with all of the details from Part-B auto-filling in the MOA and AOA. According to Schedule I, the applicant must fill out all of the information in the Moan or AOA. Attach the DSC of all professionals and subscribers to the portal as well.
- Filing Forms with MCA: After filling out all of the details in Spice+ and AGILE PRO, the applicant must file the respective forms with MCA. After submission, the documents can be submitted, and a Digital Signature Certificate can be affixed to the respective Form
- Examining and Paying Fees: The next step is an investigation, and after a following successful examination, the applicant must click on the confirmation button, and the applicant company must pay the registration fee.
- Certificate: If the Registrar is pleased with the application and documents, a Certificate of Incorporation will be issued
Important Forms for NGO Registration Process
- Form INC 1: Name registration of NGO
- Form INC 12: The form should be submitted to acquire a licence to run an NGO
- Form INC 13: Memorandum of Association; INC-15 is a declaration by each subscriber to the Memorandum
- Form INC 7: Application for Incorporation of the NGO.
- FORM INC 22: Details of the Registered Address
- Form DIR 12: To appoint directors of the NGO
Why do we need To Register NGO
When an NGO starts working, funds are donated to it. To have accountability for that fund received, the NGO requires having a legal status.
You need to open an account under your NGO's name to receive funds. That requires your NGO to be registered.
When you do campaigns for the NGO, if it is registered, then all the required assets for the campaign can be received under the name of the NGO.
Being a part of the society and working as a social group would require your NGO to follow certain legal, social, and ethical regulations. That is why registration is very important.
If funders wish to support your NGO, having your NGO registered will allow them to see if your NGO meets every criterion, if they have any.
If the funders for your NGO are from outside India, your NGO needs to be registered so that it has the certificate that allows it for foreign funding.
If you want to rebate the Taxes for your NGO funds, your NGO needs to be registered.
With tax exemption certificates under 12A and 80G, your NGO needs to be registered.
Under Income Tax Act 1961, being a registered NGO will allow you to transfer ownership of your NGO if there is any need for it under the Companies Act, 2013.
Hence, as you can see, a registered NGO has more perks than an unregistered NGO.
Funders and officials are much more confident in supporting a registered NGO.
Benefits of NGO Registration
Registering with an NGO can have several benefits, such as:
- Tax exemptions.
- Transfer of ownership.
- Right to acquire assets.
- No Minimum share capital is required.
- Protection from Personal Liability.
- Stability of entry.
- Structural financial plan.
- Corporate entity.
- Opening a banking account.
- Name preservation.
Difference Between NGO and Trust
NGOs and Trusts are both non-profit organisations. However, in the case of NGOs, they are reliant on the government, while Trusts are not reliant on the government.
Trusts are small organisations with 20-30 members that do not receive any funds from the government, unlike NGOs, which receive funds from the government and have several members.
What works are done by NGO
NGOs do several types of work for the benefit of society. Usually, each NGO chooses a particular cause of action.
These causes can be environmental, advocacy, social work, human rights work, etc. NGOs also work in health sectors to provide health services.
For example, in case of a flood, an NGO may donate money, food, clothes, and medicines to the victims of the natural calamity.
How NGOs receive Funds
NGOs can receive funds from individuals, companies, and local, state, or central governments.
Not only that, but your NGO can also get bilateral or multilateral aid from foreign companies set in the country or from organisations set in the country by the United Nations,
The World Bank, etc. Some NGOs qualify for Tax exemption if their organisations are qualified for 501(c)(3) of the Internal Revenue Service.
Laws Related to NGOs in India
After knowing about how to register a ngo in India and other details let's talk about the laws that are applied to your NGO in India are:
- Constitution of India
- Income Tax Act (1961)
- Public Trusts Acts of various states
- Societies Registration Act (1860)
- Indian Companies Act (2013) Section 8
- Foreign Contribution Regulation Act (2010)
- Goods and Services Tax Act 2017
Some Popular NGOs Working in India
There are several NGOs working in India, some of them are:
- CRY (Child Rights and You) NGO
- Smile Foundation
- Give India Foundation
- Nanhi Kali
- Helpage India
- Oxfam India
- Save the Children India
All of these above-mentioned NGOs have been around for decades and are quite established in their field of choice.
Final Words On How to Register an NGO in India
Starting an NGO is a big step. Helping your community and society become a better version of it can be quite taxing.
That is why you must go through everything carefully and do your proper research before you set on your journey to begin your NGO.
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