Non-governmental organizations, rather NGOs, are very instrumental in the solution of social problems, service provision, and community development. Situated in a country like India, the registration of NGOs does seem to be quite complicated, yet when requirements and procedures can be comprehended, the process is fairly workable.
This blog summarizes the NGO registration process in India: the fee one needs to pay, the documents needed, and gives a general idea about the timeline.
Types of the NGO Registration in India
NGOs can be registered under various acts in India, each with its set of laws and advantages. The common forms of registration for an NGO are as under:
- Societies Registration: This is ideal for NGOs dealing in educational, charitable, or social purposes. A society requires a minimum of seven members for it to begin.
- Trusts: This is in order, where the basic and main purpose of the NGO will revolve around charitable and where there needs to be a clear structure of trusteeship. The minimum number it requires is two trustees.
- Companies: An NGO may be registered as a Section 8 company, which shall be a non-profit corporate entity. It needs a minimum number of two directors.
Steps of Registration in an NGO in India
Decide whether you want to register under the Societies Registration Act, the Trusts Act, or the Companies Act. Each has its own set of advantages depending on your NGO’s goals and operational needs.
Choose the Type of Registration
You will have to decide whether you want to register under the Societies Registration Act, the Trusts Act, or the Companies Act. All three have their relative advantages for your NGO’s goals and operational requirements.
Draft the Governing Documents
- Societies Registration Act: These have to draft a Memorandum of Association (MOA) and Rules & Regulations.
- Trusts Act: It is required to draft the Trust Deed.
- Companies Act: The Memorandum of Association-MOA and the Articles of Association-AOA have to be drafted.
Any documents that provide under it the objectives of the NGO, names, and addresses of members/trustees/directors, and mode of governance are attached.
Name Your NGO
Ensure that you come up with a unique name for your NGO since it should reflect the mission, compliance, and motive behind the NGO. You need to fulfill all the legal requirements, and you should be very cautious in selecting the name of the NGO; it must not sound similar to any NGO name present already, or that would make confusion arise.
Prepare the Required Documents
The documents required vary slightly depending on the type of registration:
- For Societies:
- Memorandum of Association (MOA)
- Rules and Regulations
- Address proof of the registered office
- Identity proof of the members
- No-objection certificate from the landlord (if applicable)
- For Trusts:
- Trust Deed
- Address proof of the registered office
- Identity proof of the trustees
- No-objection certificate from the landlord (if applicable)
- For Companies:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Address proof of the registered office
- Identity proof of the directors
- No-objection certificate from the landlord (if applicable)
- Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the directors.
Submit the Application
- Society: The application needs to be submitted to the registrar of societies in your state with all the required documents.
- Trust: In the trust act you need to apply to the local registrar’s office.
- Companies: For applying to the registrar of the companies through the Ministry of Corporate Affairs portals.
Verification and Approval
Once submitted, the Registrar or the RoC will scrutinize your documents and may call for more information or some sort of clarification. This checking would involve some aspect of authentication of submitted documents and whether your NGO complies with the relevant laws.
Obtain a Registration Certificate
Thereafter, it will grant your registration certificate. In the case of a society, it shall be from the Registrar of Societies. In the case of a trust, it shall be from the sub-registrar. In the case of a Section 8 company, the RoC will grant an incorporation certificate.
Fees Involved in an NGO Registration Process
The fees to register an NGO vary, depending on the type of registration and state you apply in.
- Registration of Societies: Fees range from INR 500 to 1000 for the overall process of registration. However, this amount may vary concerning specific states.
- Registration of Trust: Normally, the cost of registration ranges between INR 1000 to 2000, and it includes stamp duty that also varies from state to state.
- Registration of Company: Incorporation costs range from INR 1,000 to INR 7,000 and at times more for verification and professional charges.
Timeframe for Registration Process of NGO
The registration of an NGO is said to take different periods depending on the type of registration and efficiency of the given office:
- Societies Registration: Usually takes 1 to 5 months on average.
- Trust Registration: This is commonly done within a period of one to three months.
- Company Registration: This may take about 1 to 4 months due to the extra requirements of compliance.
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Post-Registration Compliance Of an NGO
The various statutory compliances that have to be made after registration of your NGO are:
Obtain PAN and TAN: You are expected to make an application for a Permanent Account Number and also a Tax Deduction and Collection Account Number for your business to be identified about taxes.
Open Bank Account: A bank account in the name of the NGO should be opened for financial transactions.
Registration under FCRA: This will be a must if your NGO is to receive foreign donations.
Annual Filings: The Company shall maintain proper books of accounts and shall file annual returns with the respective registrar or the Ministry of Corporate Affairs.
Conclusion
Registration of an NGO in India involves a series of steps, including choosing the type of registration, drafting of documents, as well as submission of applications, and adherence to the legal requirements. Though the process might be a bit detailed, it’s important to ensure that your NGO functions within the legal ambit and hence contributes toward attaining its mission effectively.
Knowing the costs involved, the needed documents, and a timeline will ease the process of registration; hence, giving you ample time to achieve your goals in making positive changes in society. We recommend that you consult a professional and expert in NGO registration or a practicing attorney who will be able to provide step-by-step guidance through the registration process with ease and in full observance of the regulations.