How to apply for NGO Registration?

By structure, NGO registration can be of three types:

• Trust;
• Society;
• Section 8.

But in this blog, we will study the simple steps involved in the NGO registration under Section 8 Company. But before we leap on that, let’s first understand the meaning of NGO and Section 8 Company.

What is NGO?

NGO is abbreviated as Non-Governmental Organizations and isn’t a part of the government. Typically, an NGO is independent of government and self-governing body. It is also known as a Non-Profit Organization. Generally, the prime business of an NGO is to provide support to an underprivileged section of the society and the work for the advancement of different issues like social, educational, legal, cultural, environmental, and more.

Meaning of Section 8 Company

A Section 8 Company is a company registered under Section 8 of Indian Companies Act, 2013 (or old Section 25(1) (a) & (b) of the Indian Companies Act, 1956, a section-25). Mainly, these companies have the principal objective of encouraging healthcare, social welfare, religion, art, commerce, science, sports, safety, research, charity, protection of the environment, and more.

Generally, the name of Section 8 Companies ends with words like Institution, Foundation, Association, Federation, etc.

Steps for NGO Registration under Section 8 Company in India

Step1: Procure DSC to sign documents

It is quite imperative for the applicant to obtain DSC (Digital Signature Certificate). Digital Signature is required to sign documents or incorporation form while filing e-forms on MCA portal. Also, a digital signature is one of the most secure and authentic ways of submitting documents online.

Documents required for obtaining DSC for directors are as follows:

• A copy of PAN card
• Driving license/Passport/Aadhaar Card/Voters’ Identity Card
• Duly filled and signed Digital Signature Form

Step2: Application for name approval

The ROC (Registrar of Companies) will approve the name of the proposed company. One can obtain the approval from ROC through an application submission in RUN. The maximum of two names can be submitted in order of their preference. Name approval will take 1-2 working days.

Step3: Filing an application for License under Section 8

The next step to NGO registration under Section 8 Company registration is to get a license under Section-8. For this, the applicant is supposed to file constitutional documents, MOA (Memorandum of Association) and (AOA) Articles of Association, as a draft with ROC with necessary documents in Form INC 12 which will issue the company license under Section-8.

Step4: Incorporation Application with ROC

As we know that every proposed director in a company must possess DIN (Director Identification Number), for fresh DIN no separate application form is required to be filed and one can directly apply for DIN in the incorporation form.  Prior to this, a separate application form was required to be filed with ROC for obtaining DIN.

After filing of Form INC-12, one needs to file an incorporation form (SPICE) with ROC. After uploading and payment of required stamp duty and government fee, the incorporation form would be accessible to ROC. The ROC will check the form and if everything is correct including the name of the company, the ROC will approve the company.

After the approval of ROC, the applicant will receive the certificate of incorporation of the company and the NGO registration under Section-8 will be done. Along with, the applicant will also get the PAN and TAN of the company.

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What is the procedure for trust registration?

Non-Government Organizations, NGO are those entities which work for charitable purposes without an aim for any profits for self. In India, NGOs can be registered as any of the following:

1. Trust under Indian Trusts Act, 1882

• 1. Society under Societies Registration Act 1860
  2. Section 8 Company under Companies Act, 2013

An NGO can be formed as a Public Trust (charitable trust) for the benefit of the general public with a specific objective that can be related to education, health, sanitation, eradication of poverty etc.  It is different from the formation of a Private Trust where a particular group of individuals, a family or a specific class of people becomes the beneficiaries to the trust.

What are the guidelines for a Trust Registration?

1. “Any person who is competent to contract under the applicable laws or has the power to transfer the property that is transferable can create a trust.” A Trust like all the organizations is required to be registered. Trust Registration is a fairly easy process.
2. Before starting the process of NGO Registration, few details are required to be in place:
   1. Name for the trust
   2. A Registered Address for the trust
   3. Objects of the trust which must be for the good of the public at large.
   4. Two trustees of the trust
   5. One settler of the trust
   6. Property of the trust which may be movable or immovable.
   7. Funds that shall be accepted: donations, grants, contributions etc
3. Next step is to draft a Trust Deed which shall mention the details as discussed above. Apart from those, the Trust deed shall also mention following
   1. Powers with the trustees.
   2. Bank details of the Trust
   3. The procedure in event of dissolution/ winding up
   4. May provide for the procedure of amalgamation with another NGO
   5. A clause for Accounts and Audits of the Trust

The Trust Deed must be printed on stamp paper of requisite value as per the State.

The Trust Deed must be accompanied by one (1) passport size photograph & a copy of identity proof of each of the trustees, settler and the witnesses.

1. The Trust deed shall then be registered in accordance with the Indian Trust Act of 1882 with the local registrar of the state. Along with the Trust Deed, two (2) copies of the Trust Deed signed by the settler on all the pages have to be submitted.
   For the registration, the trustees, settler and the witnesses must be present at the Registrar office along with their identity proof in the original.
2. The registrar shall scrutinize the documents, the deed for all the required details and all the documents. Upon his satisfaction, the Registrar shall enter the details in the official record, keep one copy of the trust deed for the record and return the original Trust deed to the applicants.
3. The Trust Registration Process is now complete and the Public Trust can now be operated in accordance with the Trust Act. The Public Trust is now ready to be operating as a Non-Governmental Organization for charitable purposes.

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