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How Can You Get an NGO Registration Certificate?

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NGO Registration is a not-for-profit organization that functions independently. In India, NGOs can be registered as a Society or Trust or section 8 companies depending on the activity a group of persons wishes to undertake. A not-for-profit organization is a voluntary group or institution that works for a social cause.

An NGO established as a company under section 8 of the Companies Act, 2013 is governed by the Ministry of corporate affairs (MCA) whereas the NGO registered as a trust, society is governed by the registrar of respective state under the state government.

In this blog, we will be discussing the registration and benefits of NGOs and companies under section 8 in India.

What Is the Process of NGO Registration Online?

NGOs can be registered in India under the given following laws:

  • Trust under Indian Trusts Act, 1882
  • Society under Societies Registration Act, 1860
  • Company under Section 8.

The registration process of NGO for Trust registration involves the given steps as follows:

Step 1: Select an appropriate name

Step 2: Drafting of Trust deed

Step 3: Selecting the Trustees of the trust

Step 4: Preparing Memorandum and Articles of Association

Step 5: Obtain the registration certificate of the NGO

Step 6: Submission of the trust deed with the Registrar

Step 7: Collection of a Copy of the Trust deed

Step 8: Paying the Requisite fees

What Are the Benefits of NGO Registration?

Registering your company under the NGO of Companies Act, 2013 has several benefits which are discussed below:

1. Tax saving –

The registration section company as an NGO under the Companies Act, 2013 and avail several taxation benefits for the directors of the company. NGOs are exempt from several taxes, and it helps the company save tax and invest the saved money in further projects.

2. Lower share capital –

All companies need a minimum share capital to function independently. NGOs can be directly funded with the donations made to them. The subscriptions help in supporting the proceedings undertaken by the company.

3. Title usage –

The NGO Registration procedure for companies is obligated to make their limited liability status public. This is not the case with companies registered under the Companies Act, 2013. The registered companies are exempt from the use of titles.

4. Transfer of ownership –

Companies registered as NGOs under the Income-tax return Act, 1961 are not restricted to transferring their ownership or claims of the interests earned. However, other companies cannot move their ownership easily.

5. Stamp Duty Exemption –

All companies registered as NGOs under Income Tax Act 2013 are exempted from stamp duty, which accounts for more tax-saving methods for the company.

6. Name Reservation for obtaining NGO Registration Certificate

What Are The Basic Requirements For The Registration of An NGO?

An NGO has to fulfil various regulatory requirements and the registration is done by the Central or state government is done by the Central or State government or by a competent authority. Various types of registration need to be obtained in India.

1. Purpose and Objections

2. Name of members, list and criteria for memberships

3. The minimum and maximum number of Board members of the NGO

4. Responsibilities of members and the structure of the organization

5. Structure and duration of meetings of members of the general body/board and executive committee

6. Responsibilities and duties of members and designation holders.

What Are The Forms Required For NGO Registration Online In India?

The following forms are required for registration of NGO in India:

  • DIR-12 – Appointment of directors
  • DIR-2 – Consent of Directors
  • DIR-3 – Application filled with ROC to obtain DIN
  • INC 16 – For obtaining the license to incorporate as NGO
  • INC-8 – Declaration
  • INC-9 – For taking affidavit from directors and subscribers

The registration process of an NGO as a company under section 8 is held online by filling out the form SPICe+ under MCA services. The Form SPICe+ has two parts i.e., PART A and Part B for incorporation purposes in format for filling the related forms are:

  • SPICe+ AOA
  • SPICe+ MOA
  • INC-9 for affixing the Digital Signature Certificate.

The pre-scrutiny check and payment of fees for the NGO registration form are as mentioned above.

What Is The Cost of Registration For An NGO In India?

The fees for registration of NGOs depend on the following reasons given below:

  • Cost of forming the corporation
  • Cost of recognition as an organization which is exempt from taxation
  • Cost of registering as a charity in the state where you can be conducting fundraising activities.

The registration under NGO is stamp papers, drafting, advocate fees and notary charges and depending on the process. The registration fees are inclusive of government taxes, fees of government and professional charges. The fees also vary on the type of registration of NGO i.e., Trust, society or company under section 8. The NGO registration fees are different for government and private consultancy services.

What Is The Section 8 Company Registration Process In India?

The procedure for incorporation of section 8 company and registration of section 8 company is discussed below:

1. Applying for name reservation on MCA

2. Applying for Digital signatures of first directors and subscribers

3. Preparation of Memorandum of Association (MOA), Articles of Association (AOA) and other documents.

4. Filing of SPICe 32 Form for section 8 company registration

Attachments to SPICe 32 are as follows:

  • Memorandum of Association in Form INC-13
  • Articles of Association
  • Declaration in Form INC-14 by CA/CS in practice.
  • For NGO Registration as a company under section 8 - Declaration by an applicant - Form INC-15
  • An estimate of future annual income and expenditure of the company for the succeeding three years
  • Name approval letter received from CRC
  • Consent as well as declaration made by first directors in Form DIR-2
  • Self-declaration by subscribers with filling Form INC-9
  • PAN & Aadhar card of subscribers and first directors
  • The registered office proof like NOC from the owner
  • Latest utility bill like the electricity bill
  • Section 8 company registration fees are divided into name reservation service i.e., RUN services by MCA and E-Form SPICe INC-32 which depends on the authorized capital of NGO Registration including the fees of MOA and AOA.

What Is The Eligibility of Forming Section 8 Company Act 2013?

The group of individuals willing to be registered under Section 8 of the Companies Act, 2013 are as follows–

  • An Individual or HUF or company is eligible to incorporate a company under Section 8 in India.
  • Two or more persons acting as shareholders or directors shall fulfill all the requirements and compliances of the Section 8 company.
  • Section 8 company means a company having its objects of promoting commerce, science, education, research, social welfare, religion, art, charity, or any other object.
  • To have the intention to invest its profits or other income in promoting its objects
  • NGO Registration is having the intention to prohibit the payment of any dividend to its members.

Why To Register Under Section 8 Company Act?

Benefits of Section 8 Company:

There are various advantages of registering an NGO under section 8 company benefits of the Companies Act, 2013 which are as follows:

  • No minimum capital –

There is no requirement of minimum capital in a company under section 8 and the capital structure can be altered at any time as per the growth of the company.

  • Tax benefits –

The Company Auditor’s report order (CARO) does not apply to the company under section 8. There is no need to pay the stamp duty imposed on the Memorandum of Association (MOA) or Articles of Association (AOA) of a private or public limited company.

  • Separate legal identity –

The NGO Registration acquires a distinct identity from its members. A registered partnership firm can also become a member in its individual capacity and obtain a Directorship of the company under section 8.

  • Limited Liability –

The members of the company under section 8 have limited liability as per the subscription of shares.

  • Creditability –

The company under section 8 is more reliable than any other form of a not-for-profit organization. It is regulated under the provisions of the Act; thus, they need to conduct mandatory audits every year, and the MOA cannot be altered relating to the non-profit objectives of the company.

  • Exemption to the Donors –

The tax exemption is granted to the donations received by the NGO Registration under Section 12A and 80G of the Income Tax Act, 1961.

What Are the Exemptions & Reliefs Available To Section 8 Of Company Act 2013 Under Different Acts?

The exemptions under the Companies Act, 2013 are as follows:

  • The directors in company under Section 8 will not be counted
  • A general meeting can be held by sending notice of not less than 14 days instead of 21 days.
  • A company under section 8 can hold at least one meeting every six calendar months instead of holding four meetings a year.
  • partnership firm can be a member of a company under section 8.
  • A company under section 8 is not required to appoint a Company secretary.
  • A company under section 8 is not required to have a Nomination and Remuneration Committee or a stakeholder’s committee.

Why Do You Need To Take Professional Service For NGO Registration?

Online XBRL is the leading platform for all kinds of registration of NGOs in India. The services are affordable and also provide expert assistance for your registration services for trust, society or company under section 8. Check the website now and know more about registering your not-for-profit organization.

Closure Now…

Working towards the betterment and improvement of society without any profit motive is a good service to society. In addition, to perform it legally, and incorporating an NGO is very important to get various benefits like donations from foundations, tax exemptions, etc. You must choose a form of NGO that suits your organization.

At Onlinexbrl, NGO Registration solutions are available at the best prices. You will get complete assistance through process completion so contact us now.