NGO registration in India is a vital step towards creating a positive impact and bringing about social change. By registering your NGO, you gain legal recognition, credibility, and the ability to access resources and funding. But the process can be complex and require adherence to specific guidelines and regulations. Knowing the intricacies of NGO registration is crucial for aspiring organizations to navigate the path effectively.
What are NGO?
NGO stands for Non-Governmental Organization. NGOs in India are important in addressing social issues, promoting welfare, and driving positive change. NGOs are involved in a wide range of activities solely for the benefit of society as a whole. NGOs’ activities include, but are not limited to, environmental, social, advocacy, and human rights work. NGOs work to promote social or political change on a larger scale, and they also play an important role in societal development, community improvement, and citizen participation.
Registering An NGO:
There are three legal ways to register an NGO in India as that is- Trusts Societies, Section 8 Corporations. Individuals in India are free to engage in social activities without the need to form an entity or
organisation. However, formation of NGO in India with a group that includes participants, activities, and resources, proper management must be in place. A specific set of rules must be followed in the NGO registration process in the form of Companies, Trusts, and Societies. An applicant must follow the various laws in order to register in any of the ways listed:
- Trust formation under “The Indian Trust Act, 1882”
- Society Registration under the “Societies Registration Act, 1860”
- Section 8 Company Registration under “The Companies Act, 2013”
The legal structure chosen is determined by the nature and scale of the NGOs activities, governance requirements, and long-term goals.
- A trust is an agreement between two parties in which one party owns property for the benefit of the other.
- A society is a group of people who come together for literary, scientific, or charitable purposes.
- Section 8 is a company formed with a social or charitable purpose that intends to use its profits to further that purpose.
Steps for NGO Registration in India:
Determine whether a trust, society, or Section 8 company is the best legal structure for your NGO. Each structure has unique requirements and benefits.
Choose a memorable and unique name for your NGO. Check that the name does not infringe on any existing trademarks or copyrights and follows the naming guidelines established by the respective registering authority.
Prepare the Memorandum of Association (MOA) as well as the Rules and Regulations (for societies) or Trust Deed (for trusts). These documents describe the NGOs objectives, governing framework, and operational procedures. Appoint a board of trustees or members to oversee the affairs of the NGO. Ensure that the individuals are dedicated to the cause of the NGO and meet the eligibility requirements of the chosen legal structure.
Prepare the necessary documents, such as identity and address proofs, photographs, and trustee/member consent letters. Submit the application and all required documents to the appropriate registering authority.
Pay the applicable registration fees for the chosen legal structure. The registering authority reviews the application and supporting documents, considering the type of NGO and the state in which registration is sought. If all requirements are met, they register the NGO and issue a registration certificate.
Procedures to Register an NGO:
As a Trust:
Select an Appropriate Name
Drafting of Trust Deed
Selecting Settlers and Trustees of the Trust
Preparing Memorandum of Association
Paying the Requisite Fees
Collection of a Copy of Trust Deed
Submission of the Trust Deed in Registrar
Obtain the Registration Certificate
As a Section 8 Company:
Apply for Digital Signature Certificate and Director Identification Number
Name Reservation
Drafting of Memorandum of Association (MOA) and Articles of Association (AOA)
Incorporation of Application through SPICe
Submission and Approval through MCA portal
As a Society:
- Choosing a Name for Society
- Preparing the Memorandum of a Society
- Prepare Documents
- Filing of Application of memorandum
- Get Society Certification
According to a recent notification, the Ministry of Home Affairs has extended the validity of registration certificates issued to Non-Profit Organizations under the Foreign Contribution (Regulation) Act, which will now expire between September 29, 2020 and May 31, 2021. The FCRA requires NGOs receiving foreign funding to register, and this decision is expected to benefit numerous NGOs and voluntary entities with expired registrations since September 29, 2020. Additionally, the Ministry of Home Affairs (MHA) emphasized the need to administer the FCRA and section 12(6) of the act, specifying that the granted certificate remains valid for five years from the date of issue.The formation of an NGO is becoming easier day by day as the use of the Internet has evolved,it seems that there are ways for Online registration for NGOs in India. Which has streamlined the process, allowing individuals and organisations to conveniently register their non-profit entities through digital platforms, ensuring greater accessibility and efficiency in establishing charitable organisations.