If you have made up your mind for starting an NGO, then we must appreciate your decision. Nowadays, NGOs are really doing well if run with all the legal licenses and permits. For operating an NGO, one must possess an NGO certificate or NGO Registration.
Hence, in this article, we have focused on how one can obtain NGO registration or certificate.
What is the Non-Government Organization or Non-profit Organization?
An NGO (Non-Governmental Organization) is a group of people, institutions, volunteers, civilians & community who work for the welfare of society in a voluntary social organization. NGO is also called NPO (Non-profit Organization).
The NGO has a separate legal entity form. And, after its incorporation in Section 8 of the Companies Act, it gets financial aid from the Government of Indiafor their functioning for the welfare of the society.
The NGOs are private agencies that carry a common cooperative objective to support local, national, and international development through awareness on social issues that influence policy changes, etc.
If the person wants to collaborate with NGOs for societal changes and the welfare of the society, then they can assist or work with these organizations without any registration.
The main objective of operating NGOs is Not Profit-Making but, to serve for the welfare of the society and bringing positive changes when needed.
What are the different categories of NGOs?
There is a different classification of NGOs, as shown below:
According to the level of Orientation
These NGOs are associated with a charity. Their objective is to meet the needs of poor people; helping them with food, clothes, medicines, etc. They also influence provisions to provide them shelter facilities. Charitable NGOs also undertake relief activities at the time of any natural calamity.
The main focus of participatory NGOs is on community development projects. They also invite contributions from local people in the form of cash, machinery, labor, etc. Cooperative groups usually prefer these organizations and hold the responsibility of the development project from its planning until the implementation.
These NGOs are also known as Advocacy. These NGOs focus on some particular issues or specific social causes. Their main motive is to create awareness among poor people or illiterates regarding government policies, norms, rules and regulations, rights provided by the government, and all factors affecting their lives. These NGOs can also act as facilitators and hence, encourage volunteers to serve with them.
These NGOs focus on providing services related to educational, health, consulting, family planning services, etc. for the awareness and development in society. They also encourage people or volunteers to implement and receive those services.
According to the level of Operations
Community-based NGOs have arisen by the own initiative of the societies. These NGOs assist educational organizations, health club, women clubs, sports club, etc. They also help to create awareness among urban poor people about all the services they can avail. In some cases, local, national, and international NGOs support community-based NGOs.
These NGOs function to help and to serve the poor people for their welfare. Some examples of Citywide organizations are Ethnic organizations, Associations of Community Organizations, Lion’s Club, etc. Besides, they are operating for other particular purposes as well.
National NGOs consist of those organizations that function and help society on a national level. Some examples of this NGO are Red Cross Society; The Young Men’s Christian Association etc. They operate in several branches in various states and assist other NGOs as well.
NGOs such as Catholic Relief Services,SOS Children’s Villages, CARE International, and Lutheran World Relief are considered under international NGO. They can also assist different local and national NGOs.
What are the documents required for NGO registration?
For NGO registration in India, you should keep the following documents:-
· PAN (Permanent Account Number) of all Directors& Shareholders
· Identity Proof of Directors and Shareholders
· Address Proof of owners (Aadhaar card, Voter ID card, Driving License, etc.)
· Recent passport size photographs of all the Directors and Shareholders;
· Address proof of registered office ( Utility bill, Possession letter, and Lease agreement)
· Rent agreement and NOC from the landlord, if applicable
· Declaration by directors in DIR 2
· Details of the directors if they hold ownership of any other companies or LLP; if any.
· Memorandum of Association in INC-13
· Articles Of Association
· Declaration from CA in INC-14
· Proposed Statement of Income and Expenditure for the next three years.
What is the procedure for an NGO registration?
Step1:- Obtaining DSC and DIN
The first step for NGO registration in India is to obtain Directors' DSC (Digital Signature Certificate). After receiving DSC, they need to file Form DIR-3 with the Registrar of Companies, and request for a DIN (Director Identification Number). After the verification of documents and forms, RoC will approve and allot DIN to the directors.
Step2:- Name approval
Under the next step, the applicants need to file form INC-1 or RUN for the proposed Company’s name approval with the RoC. They can fill two suggestions of a name in the order of choice. However, the RoC will approve only one out of the two names depending upon the availability.
Step 3:- Filing form INC-12
After approving the Company’s name, Form INC-12 needs to be filed with the RoC. This form is an application to function as an NGO in India.
While filing INC-12, the MOA and AOA must be signed by every subscriber in the presence of at least one witness.
Step4:- Issuance of NGO License
The ROC will examine and verify the form. If no discrepancy found, then they grant an NGO license under Section 8 in Form INC-16.
Step5:- Filing SPICe Form INC-32 with the RoC
After receiving the License, the applicant needs to file SPICe INC-32 with the Registrar of Companies for the incorporation of the Company. Further, the following documents need to be attached:
1. The affidavit from every director and subscriber as per INC-9
2. KYC of directors;
3. Declaration of deposits;
4. Consent letter of the director;
5. Form DIR-2 with an identity proof and address proof of directors;
6. Utility bills, it must not be older than two months;
7. NOC from the landlord;
8. Interest in other entities of all directors;
9. Drafted MOA and AOA.
If the ROC finds the form satisfying, it will grant Certificate of Incorporation along with the CIN (Corporate Identification Number) of an NGO.
The process of NGO registration is quite simple and does not require colossal documentation; still, it is quite challenging to get approval from ROC. So it’s a better decision to hire professionals for your NGO registration. Contact Swarit Advisors, one of the leading consultants in the market with best lawyers for your NGO registration.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.