How to Apply for NGO Registration in India
An NGO stands for non government organization. An organization that works for charitable causes without the intention of any profits from it. An NGO registration can be done under following acts:-
- The Indian trusts act 1882 for trusts.
- Societies Registration act 1860 for society.
- Companies act 2013 under sec -8
Here we’d explain an NGO Registration by the “Trusts act 1882”, Society Registration act 1860 and sec-8 Company, under the company’s act 2013.
Purpose of Trust Registration by the sec -8 company under companies act.
The main purpose of trust Registration is the establishment of the company as sec -8 company is for the promotion of non-profit objectives like commerce, trades, education, charity, arts, research and sports etc. Any profits gained as an income are used for promoting their welfare work and are not distributed to the shareholders as dividend funds.
A minimum of 2 directors are needed or required if the sec 8 company is made/incorporated as a private limited. And will require 3 directors in case of public limited. The maximum members that can be recruited could be not more than 200 in private limited company, while public limited has no such limit. There is also no need for any minimum paid capital in case of Trust Registration under sec-8 Company.
Pre-requisites for Trust/NGO Registration Process
Obtain a DSC which is a digital signature, it’s required for because trust/NGO Registration forms are filled online and require to be signed digitally. The certificate of a digital signature is issued by a government recognized agencies for certifying. The cost of vetting a DSC is variable upon the certifying agencies. You must get either a class 2 or the class 3 category signatures of DSC. Under the class 2 category, the person identifying is verified against already verified data where as under the class 3 categories, the identifying person is supposed to present himself before trust registration to prove his or her identity for NGO Registration.
Another is an application of Director Identification number. Also known as DIN which you need to apply for proposed directors of the supposed company. The application for allotment of DIN needs to be made in a form “form DIR-3” you must attach a scanned copy of necessary documents. Such as:-
- Self attested PAN number copy
- Identity proof of directors
- Address proof of directors along with the form attested by a practicing professional like a chartered accountant or a company secretary or even a cost accountant.
And submit these online on the MCA portal.
What Are the Forms Required for NGO Registration
- INC 1- for approval of the name
- INC12 – for issuing a license as sec-8 Company.
- INC 13 – memorandum of association.
- INC 7 – for incorporation of the company.
- INC-22 – registered office of the company.
- INC -12 –for an appointment of the directors.
Why Need NGO Registration?
In our society, many people’s do social, charitable, welfare and development work and some other activities at their own level. In such cases they don’t register the group for NGO. But if someone is willing to work with any social NGO Registration organization then, they can do voluntary service without the responsibility for a resource. The social workers or volunteers generally plan to form an organization and then they have to trust registration legally. Initially, we can run, operate and organize the programmer at our own but we have to make a team & group. After building a team or group, it is easy to carry or organize the work. Here below are some points as to why we need trust registration organization even when we can run at our own level:-
- When a team or group of persons are raising funds or getting the donations then it is must for the accountability to get a legal status for the organization. And hence the need of NGO Registration arises.
- Once the trust registration done then the resources & assets can be easily received in the name of the organization, whereas in case, if it is not registered then it only gains resources from other individuals which sometimes may lack.
- There are some ethical & legal, social regulations that must be followed if we are working as a group or organization.
- NGO Registration decides the status of the organization, & it is easy to get the help from the registered authorities, relevant departments, technical support and much more.
To apply for NGO Registration is not a big deal but NGO registration under which law & act matters, its aim, objects matters the most. To run a profitable business and a non-profitable organization requires an almost same procedure to manage with certain obligations. After establishing NGO/Trust it is necessary to maintain the transparent & detailed records of social activities.