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NGO

What Is the Best Way to Verify NGO?

In this article, everything about NGO and its key benefits has been discussed in detail for you to look at.

An NGO includes a wide array of interests like environmental reasons, animal rights, human rights, fitness, women and children’s welfare and raising funds for sports. There could be several websites to NGO registry which will bring you to reality. There are multiple reasons as to how the NGO raises funds which might include the donations given voluntarily, donations which are to gain relaxation in income taxes and there can be contributions from foreign as well.

This article will discuss the three topmost possible ways for NGO:

  • Section 8 company.
  • Trust.
  • Society.

What is an NGO? 

The word NGO stands for a not-for-profit earning entity. NGOs mainly work to develop underprivileged sections of society and look after their betterment. Similarly, registrations for NGOs are for society’s betterment.

Documents Required 

The following documents required for NGO Enrollment are:

  • An application letter from the founders/trustee is needed for NGO registry in India.
  • MOA/AOA is a Memorandum of Association or Articles of Association.
  • Name and address required.
  • Complete details of every member.
  • Address proof required (if it is rented then avail the NOC from the landlord).
  • Donation receipt (in case you have any or received in the past).
  • The NGO President signed an affidavit.
  • A declaration duly signed by the President.

What Are the Forms Required for NGO?

The forms and their purposes include the following

  • INC1- Its purpose is only name approval.
  • INC7- Its purpose is an application required for company incorporation.
  • INC8- Purpose is a declaration.
  • INC9- An affidavit received from the subscriber and director.
  • INC12- An application for a license.
  • INC13- Memorandum of Association.
  • INC14- Its purpose is a declaration from a practising CA.
  • INC16- Section 8 company license.
  • INC22- Its purpose is the situation of the registered office.
  • DIR2- Director’s consent.
  • DIR3- To get a DIN application is being sent to ROC.
  • DIR12- Director’s appointment.

Methods

The ways in which NGO registry can be done in India include the involvement of three statutory laws in India.

Section 8 of the Companies Act 2013 deals with those companies that deal with charitable objects. It is done even without adding the word ‘private limited’ or ‘limited’ as a suffix in the registered company name. If a company is registered under Section 8, certain features make a distinction.

The central government gains satisfaction once the company is registered under the companies act. The registrant shall be subjected to limited company conditions. The central government at any time can revoke the license if it deems fit. Similarly, registered companies under the companies act can be amalgamated. If a company does not fulfil the conditions mentioned under this act, a fine of Rs 1 crore may be imposed with a jail term of three years.

NGO Enrollment as ‘Section 8 of the Company’

  • An individual can apply for a DSC that Digital Signature Certificate Online for the proposed directors under this section.
  • DIR3 form must be filled with the ROC-‘ Registrar of Companies.’
  • Avail for your DIN- ‘Director Identification Number.’
  • INC1 form- Apply for the name of company or trust, or society.
  • MOA/AOA for the proposed NGO.
  • Apply for License/CIC-‘Company incorporation certificate.’
  • Section 8 is ready for operation.

Indian Trust Act 1882

Obtaining a trust is one of the preferred ways under the Indian Trust Act 1882. It was further amended in 2019. The term trust in itself justifies the entity’s characteristics i.e. its trustworthiness, reliability and belief. Hence an NGO must possess all these characteristics.

Trust being a legally mandated entity, must be created with the help of a ‘trustor.’ A trustor is someone who transfers the belongings to the trustee for the benefit of the beneficiaries for the use of the beneficiary. Trusts are mainly formed for the underprivileged sections uplift.

  • Select a proper name for your trust.
  • For the proposed entity, finalise your trustee.
  • MOA/AOA preparation and the rules pertaining to the trust functioning.
  • Preparation of trust deed clauses.
  • The trust deeds must be prepared with the aid of legal consultation. The India Trust Act 188 states that trust deeds must be registered under the local registrar.
  • The trust deeds must be submitted.
  • Submission of photocopies to the local registrar properly attested.
  • After submitting and verifying all these documents, the registration process will take at least seven days for its approval.

Societies Regulation Act, 1860

The societies are registered for the purpose of charitable activities like sports, culture, art, music etc. Societal registration is done under the society registration act 1860. This act was mainly implemented to increase the legal prerequisites of society registration and advance its art, technology, literature, etc. This act is still prevalent along with its additional amendments.

  • Select a proper name for your trust.
  • MOA/AOA preparation and the rules pertaining to the trust functioning.
  • Some other documents required are
  • Cover letter requesting NGO registration, NGO duly passed resolution certified copies, Declaration by society’s President and ID proof that can act as address proof for its members.
  • In order to obtain the final approval one must submit the MOA/AOA with the concerned society’s registrar in your respective state.

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