How can I start my own NGO?

Image result for NGO REgistrationThousand of Indian’s daily search this question in google; How can I start my own NGO? Hope my this write-up help all the people who want to open there own NGO. India is a developing country. Due to growth of entrepreneurship, demand of NGO registration also increased. According to my point of view this is welcome step for India Growth. Young blood very much interested in doing social work. Many of NGO’s run in good scale.

As per India Laws you have to registered your NGO’s with various departments to get certain benefits. You have three options to start you NGO’s. Details are:-

  • Trust
  • Society
  • Section 8 Company

Trust and Society is ancient way to registered NGO. Section 8 is Newest way to registered your NGO.

TRUST

BASIC REQUIREMENTS FOR REGISTRATION

  1. Unique Trust Name
  2. Minimum 2 Trustees (Settler can be appointed as a Trustee)
  3. ID/Address Proof of Proposed Trustees and Settler (Election ID/UID/Passport)
  4. Two Passport Size Photograph of Proposed Settler and Trustees
  5. List of Proposed Aims/Objects
  6. Trust Deed (Trust deed is executed on stamp paper and stamp duty is 3% of secured trust amount)
  7. Two Witness
  8. Government fee Rs 1100/- in Delhi (Varied state by state)

NOTE: Physical appearance of Settler and Trustee is mandatory at the time of trust registration at Sub- Registrar office.

Go to the local registrar office & submit the Trust Deed, along with one Photocopy, for registration. The photocopy of the Deed should also contain the signature of settler and trustees on all the pages. At the time of registration the settler & two witnesses are required to be personally present, along with their identity proof in the original.The Registrar retains the photocopy & returns the original registered copy of the Trust Deed within 2-5 working days.

SOCIETIES REGISTRATION 

Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally under state registration act. The charitable societies are of two types, first one is at State level and other one is at National level society. Basic differences between these two societies are area of operations. The state level registered society eligible for doing work only in the state where they registered but in National level registered society it is not; they are absolute power to do social work all over the country.

Basic Requirements of Society Registration

  1. Unique Society Name
  2. Minimum 7 Members in case of State level or minimum 9 Members form Seven Different states in case of National level
  3. Notarised ID/Address proof of proposed member
  4. List of proposed objects/Aims
  5. List of Desirous person; which is duly signed by all members and affixed court fee of Rs 3 (In Delhi)
  6. Names, designations, addresses and occupations of the members of first governing body. These members have various designations that can be decided among themselves. Common designations are President, Vice-President, Secretary, Joint-Secretary and Treasurer etc.
  7. Affidavit by way of NOC by landlord with ownership proof (if proposed registered office is rented) or NOC by proposed President with ownership proof (if premises is owned)
  8. A declaration given by governing body assuring the use of the fund of the society for the purpose for which they are collected
  9. Affidavit by way of declaration by President that he/she chair the first presidency; desirous person are not related to each other by way of blood relation; the name of the society is not identical or reassembles with already registered society
  10. Authority letter duly signed by all governing body to authorised any one for represent before sub registrar office
  11. Government Fee Rs 50/- (Varied State by State)

Visit to the registrar office and submit the application together with: (a) memorandum of association and rules and regulations (bylaws); (b) consent letters of all the members of the managing committee; (c) authority letter duly signed by all the members of the managing committee; (d) an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.10-/, together with a court fee stamp; and (e) a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society. 

All the aforesaid documents which are required for the application for registration should be submitted in duplicate, together with the required registration fee.

The Registrar retained all the documents and provide certificate of registration with 21 days after submitting the application.

SECTION 8 COMPANIES

The concept of non-profit making company is quite old in India. In erstwhile Companies Act, 1956 it was regulated by Section 25 and that is why it was popular as Section 25 Company. However in Companies Act 2013 provisions related to non-profit making company are given in Section 8 read with Rule 19 and 20 of Companies (Incorporation) Rules, 2014.

As per section 8 of Companies Act 2013, where it is proved to the satisfaction of the Central Government that a person or an association of persons want to register themselves under section 8 as a limited company for the furtherance of above mentioned objects, the Central Government may, by licence issued in prescribed manner allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited” , and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.

Procedure for registration of Non-Profit Making Company

For getting License under section 8 for new companies with charitable objects is given in rule 19 of Companies (Incorporation) Rules, 2014. Please find below the process for registration of non-profit making Company under Companies Act, 2013:

Step 1 – Obtain Digital Signatures 

It is compulsorily required to obtain a Class II Digital Signature Certificate from authorized DSC issuing agencies for obtaining DIN and filing other documents with MCA.

(Note:  For obtaining DSC you required – one passport size photograph, self attested copy of PAN and Address proof {UID/Voter Card/Passport}, Email id)

Step 2 – Obtain Director Identification Number [Section 153]

As per 153 of the Companies Act, 2013, every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number in form DIR.3 to the Central Government in such form and manner and along with such fees as may be prescribed. (Government fee Rs 500/- per application; Documents required – one passport size photograph, self attested copy of PAN and Address proof {UID/Voter Card/Passport}, Mobile Number and Email ID)

Step 3 – Name availability for proposed company 

As per section 4(4) read with Rule-9 of Companies (Incorporation) Rules, 2014, application for the reservation/availability of name shall be in Form no. INC.1 along with prescribed fee of Rs. 1,000/-. While selecting the name it must be keep in mind that name should be in accordance with name guidelines given in Rule-8 of Companies (Incorporation) Rules, 2014. The name will be valid for a period of 60 Days from the date on which the application for Reservation was made. After approval of name ROC will issue a Name availability letter.

(Details Required – Occupation of applicant, six proposed names of the company with significance and Main Objects)

Step 4 – License under section 8 for new companies with charitable objects

A person or an association of persons desirous of incorporating a company shall make an application in E- Form INC-12 along with the prescribed fee, to the Registrar for a license under sub-section (1) of section 8. (Government Fee Rs 2000/-)

Main attachments of Form INC.12 would be as follows:

(a) The draft Memorandum of Association (It should be noted that the main objects should match with the objects shown in e-Form INC.1. These two documents are basically the charter and internal rules and regulations of the company. Therefore, it must be drafted with utmost care and with the advice of the experts and the other object clause should be drafted in a very broader sense. The memorandum of association of the proposed company shall be in Form No.INC.13).

(b) The draft Articles of Association of the proposed company.

(c) The declaration in Form No.INC.14 by an Advocate, a Chartered Accountant, Cost Accountant or Company Secretary in practice, that the draft memorandum and articles of association have been drawn up in conformity with the provisions of section 8 and rules made hereunder and that all the requirements of the Act and the rules made thereunder relating to registration of the company under section 8 and matters incidental or supplemental thereto have been complied with;

(d) The declaration by each of the persons making the application in Form No. INC.15.

(e) An estimate of the future annual income and expenditure of the company for next three years, specifying the sources of the income and the objects of the expenditure;

(f) Assets and Liability Statement.

There are few other attachments for form INC.12 but they are not compulsory. However the above 6 attachments are compulsory to incorporate a Non-profit making company.

  • (2)  Power of attorney to authorise the company secretary/chartered accountant/cost accountant for representing before ROC/RD.
  • (3) Statement of the grounds on which application made.

If after filling the Requisite forms for incorporation with the Registrar of Companies along with fees, ROC is satisfied with the contents of the documents filed, ROC will issue the Licence in form No. INC.16 under section 8(1) read with rule 19 of Companies (Incorporation) Rules, 2014.

Step 5 – Incorporation of proposed company

After receiving Licence from RD, applicant required to file following forms to get certificate of incorporation from ROC:-

Form INC – 7 for application or declaration for incorporation of a company.

Documents to be attached:

  • (i) Memorandum of association
  • (ii) Article of association (Table F)
  • (iii) Declaration by Professionals in INC 8 (On Rupee 10 Stamp paper)
  • (iv) Affidavit from Subscribers and first directors in INC 9 (On Rupee 10 Stamp paper)
  • (v) Affidavit cum Declaration that company not accept deposits (On Rupee 10 Stamp paper)
  • (vi) Proof of residential address of all Directors (Not older than two month)
  • (vii) Proof of identity
  • (viii) Pan card of all directors
  • (ix) Verification  of  signature of  subscribers  in  Form  INC  10 (Notarized by notary public)

Form INC – 22 within 30 days or along with form INC-7 for giving notice of situation of registered office.

Documents to be attached:

(i)         Proof of registered office address (Rent agreement/Lease deed/Conveyance deed)

(ii)       Copy of ownership proof of landlord (Utility bill – Not older than 2 months)

(iii)      NOC (No Objection Certificate) from landlord

Form DIR – 12 for particulars of appointment of Directors and the key managerial personnel. Once the form has been approved by the concerned official of the Ministry, you will receive an email regarding the same and the status of the form will get changed to Approved.

Documents to be attached:

  • (i) Letter of appointment
  • (ii) DIR-2 (Consent to act as director)
  • (iii) Affidavit cum Declaration of all directors on Rs.10 Stamp Paper.

Once all the forms are duly approved by ROC, applicant gets Certificate of Incorporation from ROC (Registrar of companies)

Total Time Duration – 25-35 working days

Regards | CS Sukhwinder Singh | 9999939069

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