What is NGO Registration

WHAT IS NGO

  • The “NGO” full form is Non-Governmental Organisation or Non-Profit Organisation means the organisation which is controlled by non – government organisation.
  • These NGO normally involves in the following sectors are;-
  1. Education,
  2. Human,
  3. Social Welfare,
  4. Society,
  5. Public policy,
  6. Environmental & etc.
  • NGO is also known as a non-profit organisation or organisation which is created solely for their non-profit-making legal object like Social Welfare.
  • These organisation generally funded by the donation to meet their legal objectives for which it is formed.
  • The Government provide Tax exemption to NGO under section 12A, 12AA, 80G of Income Tax Act.
  • Normally NGO has charitable & Non-profit organisation Status.
  • They have no short term financial objectives & do work for the objectives for Which it is formed.
  • The NGO can be distinguished based on the area of operation like Local, regional, State, National or international level.
  • Click here for REGISTRATION OF NGO or NGO REGISTRATION ONLINE or NGO ONLINE REGISTRATION

TYPES OF REGISTRATION OF NGO

The NGO can be formed by any person (Natural or ArtificIal person) in the following way are:-

  1. Trust (formed under The Indian Trust Act) or
  2. Society (formed under The Society Act) or
  3. Section 8 Company previously known as Section 25 Company (formed under The Companies Act, 2013).

HOW TO REGISTER AN NGO ONLINE

  • REGISTER A CHARITABLE TRUST or TRUST REGISTRATION AS NGO
  • SOCIETY REGISTRATION AS NGO
  • SECTION 8 COMPANY

THE SECTION 8 COMPANY REGISTRATION OR NGO REGISTRATION

  • GOVERNING ACT

The Section 8 Company or NGO Registration is Governed by the Companies Act, 2013 of India.

 

  • REGISTERING AUTHORITY

The Registrar of Companies (ROCs) or Ministry of Corporate Affair (MCA).

 

  • NAME APPROVAL ACT

The name approval for Section 8 Company or NGO Registration as per Section 4(2) & 4(4) Companies Act, 2013 read with Rule 8 & 9, Companies (Incorporation) rules, 2014 & Companies (Incorporation) amendment rules, 2019.

 

  • WHO CAN FORM

Any person {Natural person (eg. Ram, Shyam) or Artificial person (eg. The company, Entity} can form a Section 8 Company Registration as NGO, which able to do contract as per The Contract Act.

 

  • IMPORTANT DOCUMENT

The “Memorandum of Association (MOA) & Articles of Association (AOA)” is a very important document for registering a Section 8 Company or NGO and Its also known as rules & regulation of the Section 8 Company or NGO.

 

  • MEMBERS
  1. The minimum of 2 & maximum 200 members (In case of Private Company) or
  2. The minimum of 3 & no limit for maximum members (In case of Public Company)

is required for Section 8 Company or NGO Registration with Registrar of Companies (ROCs).

 

  • CONTROLLING PERSON

The Founder or Promoters, Board of Director, Authorised person or Executive members of the Section 8 Company or NGO are the controlling persons.

 

  • MANAGEMENT OF ASSETS / PROPERTY
  1. The controlling person (i.e. Founder or Promoters, Board of Director, Authorised person or Executive members) will able to manage the Asset/property of Section 8 Company or NGO
  2. but the selling of Majority of Assets/property with the approval of Shareholders by passing Special Resolution & As per provisions of Articles of Association (AOA).

 

  • DISSOLUTION / WINDING UP OF SECTION 8 COMPANY

The Section 8 Company or NGO is Dissolved/Winding up as per the following methods are:-

  1. Shareholders Consent / Voluntary Winding-up;
  2. Creditors filed a case with NCLT (National Company Law Tribunal);
  3. Winding up by NCLT / Compulsory Winding-up;
  4. As per the Provisions of Memorandum of Association (MOA) & Articles of Association (AOA).

after settling all its debts or Liabilities. The remaining funds of the Section 8 Company or NGO shall be distributed amongst the Shareholders / Members.

 

  • ANNUAL COMPLIANCE

Section 8 Company or NGO compulsorily required to do filing of the following documents with Registrar of Companies (ROCs) are:-

  1. Audit Report;
  2. Board Report;
  3. Financial Statement includes Balance sheet & Profit & Loss statement;
  4. Annual Return Includes shareholding pattern, Change in Management / Shareholders / Key managerial personnel;
  5. Donations details;
  6. Board meetings Notice, Minutes, CTC Resolutions & Attendance sheet;
  7. Shareholders meetings Notice, Minutes, CTC Resolutions, Annual report & Attendance sheet;
  8. Maintain Register of Members, Directors, Creditors, Charge & Key managerial personnel etc.;
  9. Conduct Committee meetings & Other relevant documents.
  • POWER TO VOTE

All members of Section 8 Company or NGO have equal right of voting up to the value of shares they hold except in case of differential voting right for any decision as per Companies Act, 2013.

 

  • PROHIBITION ON DIVIDEND

The Section 8 Company or NGO are prohibited to pay any dividend to its shareholders or members in any form (cash or Kind) a per Companies act, 2013.

 

  • RAISING OF FUNDS

Normally there is no restriction on raising of funds for Section 8 Company or NGO as Companies Act, 2013 but the government may restrict if it is against public policy or national policy.

 

  • SECTION 8 COMPANY OR NGO CAN USE “FOUNDATION, SAMITI OR NGO” IN ITS NAME

Yes, Section 8 Company or NGO can be used “Foundation, Samiti Or NGO” words in the last of their Section 8 Company or NGO name

 

  • FOREIGNER or NRI CAN BE MEMBER

There is no restriction on Foreigner to become a member of the Society as per Companies Act, 2013 but the Section 8 Company or NGO may have a problem in getting FCRA/12A License.

 

  • PAYMENT TO CONTROLLING PERSON
  1. Generally, Members or Board of Directors or Key Managerial Personnel have right to receive payment except there are provisions in the Memorandum of Association (MOA) & Articles of Association (AOA) of Section 8 Company or NGO
  2. But Professional services or consultancy are Eligible for payment & The Approval of authorised person is required.

 

  • TRANSFER OF MEMBERSHIP

There is no Restriction in the Section 8 Company or NGO to transfer of membership as per Companies Act, 2013 except it restricted by Memorandum of Association (MOA) & Articles of Association (AOA) or In case of Private Company.

 

  • MEETINGS OF CONTROLLING PERSON
  1. The Board of Directors are required to conduct a minimum 4 Board meeting with a maximum gap is 120 days between two Board meetings &
  2. Shareholders/members meetings or Annual general meeting (AGM) is conducted on an Annual basis / if any resolution approval of Shareholder required.
  • AREA OF OPERATION

The Section 8 Company or NGO registered under the Companies Act, 2013 and It operates on National Level and it is registered with the Central government (MCA).

 

  • TENURE OF SECTION 8 COMPANY OR NGO REGISTRATION

There is no limit on the tenure of Section 8 Company or NGO Registration as per Companies Act, 2013.

 

  • EXECUTIVE DIRECTORS MEANS
  1. The Executive Directors means Director appointed in the Section 8 Company or NGO as per section 149(1) of companies act, 2013 &
  2. They are Involves in taking day to day decision of the companies.
  • BOARD OF DIRECTORS MEANS

The Board of Directors is a composition of all Executive & Non-Executive Director of the Section 8 Company or NGO.

 

  • MEMBERS / SHAREHOLDERS MEANS

The Members / Shareholders means those people who subscribed the share capital or Purchase the shares of Section 8 Company or NGO.

 

  • KEY MANAGERIAL PERSONNEL MEANS
  1. The Key Managerial Personnel are those who appointed as per Section 203 of the Companies Act, 2013 & Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
  2. All the public & listed whose paid-up capital is 10 crore or more are required to appoint Key Managerial Personnel.

The following person includes in the Key Managerial Personnel list are:-

  1. Chief executive officer or Managing Director or Manager;
  2. Company Secretary (all companies to appoint whose paid-up capital 5 Cr. Or more);
  3. Chief Financial Officer &
  4. Whole-time Director.

DOCUMENTS FOR SECTION 8 COMPANY REGISTRATION OR ONLINE NGO REGISTRATION

  • DOCUMENTS OF DIRECTORS & MEMBERS
  1. Passport Size Photo.
  2. Identity Proof (Driving License or Passport or Voter ID).​
  3. Address Proof (Mobile Bill or Electricity bill or Bank Statement).
  4. PAN Card (Mandatory).
  5. Passport is mandatory for Foreign National or Non-Resident India (NRI).
  6. Aadhar Card.
  7. Mobile No.
  8. Email Id.
  9. Qualification.
  10. Occupation​.
  • DOCUMENTS FOR COMPANY
  1. Name of the Company.
  2. Business Objective (A Section 8 company or NGO registration is registered with only one objective).
  3. Authorized Share Capital.
  4. Paid Up Capital.
  5. Registered Office of the Company.
  6. Property Owned (Sale Deed or Electricity Bill) OR Property Rented ( Rent Agreement)
  7. Memorandum of Association (MOA) & Articles of Association (AOA).
  8. Identity proof of Two Witnesses.

PROCEDURE FOR SECTION 8 COMPANY REGISTRATION OR NGO REGISTRATION ONLINE PROCESS

COLLECTION OF DOCUMENTS.

  • We send you a checklist of documents required.
  • Send us a scanned copy of all documents as per the checklist.
  • We check the documents as per checklist
  • All the documents attested & Notarized

PREPARATION OF DIGITAL SIGNATURE CERTIFICATE (DSC).

  • Fill the DSC application form along with an attested copy of PAN card, Identity proof, Address Proof, Mobile No., & Email id, etc.
  • Filing of Application with the relevant authority of Digital signature.
  • Authority send OTP (One time Password) on Registered Mobile no. & Email Address
  • Record the 30 seconds video of the person for which DSC is to be registered.
  • Download DSC (Digital Signature certificate) in E pass Token.

APPLICATION FOR DIRECTOR IDENTIFICATION NUMBER (DIN).

  • Preparation of Form DIR – 3 for DIN Number.
  • Filing of Form DIR – 3 with ROCs (Registrar of Companies) along with requisite fees & Documents.
  • Download the DIN Number of proposed Directors of the Company.

APPLICATION FOR NAME APPROVAL.

  • The Company name suggested by the Proposed Director or members of the company.
  • The name should be as companies act 2013 & relevant rules & regulations for Company name.
  • The Proposed company name shall be Unique & contain word related to its business activities, not related to any trademark.
  • The name of the company is suggested by Directors or Members for company registration is checked by our professional teams.
  • Preparation of Form RUN (Reserve Unique Name) & filing with relevant authority along with the fees of INR 1000.
  • The name approved by the relevant authority after checking all legal provisions.
  • The Unique Proposed company name is valid for 20 days.

PREPARATION OF INCORPORATION DOCUMENTS.

  • Collection of All documents as per checklist for Company registration.
  • All Documents are attested & Notarized.
  • Check eligibility criteria for proposed Directors & Members.
  • Preparation of Affidavit of proposed Directors & Members.
  • Preparation of E – Memorandum of Association (MOA) SPICE form 33.
  • Preparation of E – Articles of Association (AOA) SPICE form 34.
  • The identity proof (Voter id / Driving License / Passport) & Address proof not older than 2 months (Bank statement / Mobile bill / Electricity bill / Telephone bill) shall be attested by proposed Directors & Members.

PREPARATION OF SPICE FORM 32 & APPROVAL OF RD.

  • The details fill in SPICE FORM 32 of the proposed company, Directors, Members & other important information.
  • Attachment of E- MOA, E – AOA, Identity proof, Address proof, proposed Company registered office documents.
  • Scrutiny of the application form by the team of our professional.
  • The following list of documents required to attach with Spice – 32 are:-
  1. E- Memorandum of Association (MOA) (Spice Form 33);
  2. E- Articles of Association (AOA) (Spice Form 34);
  3. Declaration by PCS/PCA/PCWA for proper drafting of MOA & AOA Form in INC-14;
  4. Declaration of Applicant in Form INC-15;
  5. Identity & Address proof of all Directors & Subscribers of the proposed company;
  6. Grounds of an application for Section 8 Company or NGO registration;
  7. Preparation of Projected Balance sheet for 3 years.
  • Attach the DSC (Digital Signature Certificate) of Practising professional & authorized person for proposed company registration (Normally Director).

APPLICATION FOR PAN & TAN.

  • Application of PAN no. & TAN no.along with details like Area code of registered office, Rent agreement, etc insert in SPICE form 32.
  • The relevant authority shall issue the company PAN card. & TAN certificate along with the company registration certificate.

FILING OF INCORPORATION DOCUMENTS.

  • After checking all details & scrutiny done by professional of SPICE form 32.
  • The Filing of E- Form with ROCs along with Government fees.
  • We also pay stamp duty as per state of registration on E – MOA & E – AOA along with SPICE form 32.
  • After filing the Company registration form, the SRN (Service request Number) is generated to check the further status of the application.
  • Our professional follow up with relevant authority for Company registration.

GET CIN CERTIFICATE.

  • The ROCs check all details of company registration.
  • The CIN (Company Identification Number) is issued by the ROCs along with a Certificate of Company registration.
  • The CIN is consists of 16 digits combination of alphabets & Numbers.

PREPARATION OF SHARE CERTIFICATES

  • After company registration, we prepared Share certificates of Company Shareholders.
  • A share certificate is signed by 2 Authorised signatory of the company and 1 by practising professional.

DELIVER INCORPORATION KIT

The incorporation kit of the company contains the following Documents are:-

  • Name approval certificate.
  • DIN of Directors.
  • DSC of Directors & Members.
  • MOA (Memorandum of Association).
  • AOA (Articles of Association).
  • A hard copy of SPICE form 32.
  • A hard copy of attachment of SPICE form 32.
  • Copy of PAN card.
  • Copy of TAN Certificate.
  • Original Certificate of Company registration.
  • Original Share certificates.

 

ADVANTAGES FOR SECTION 8 COMPANY REGISTRATION OR ONLINE NGO REGISTRATION

  • LEGAL STATUS

The Section 8 Company or NGO has its separate legal entity which distinct its shareholders and company.

 

  • PERPETUAL SUCCESSION

There is no effect on the Section 8 Company or NGO existence after the decease of its existing shareholder / Member.

 

  • LIMITED LIABILITY

The Liability of Shareholders is Limited to the extent of Subscribing share capital.

 

  • BUSINESS CREDIBILITY / FUNDRAISING

Section 8 Company or NGO can raise funds easily in comparison to other forms of business and having high business credibility.

 

  • EXEMPTION OF STAMP DUTY

The Section 8 Company or NGO are exempt for payment of stamp duty on capital issued.

 

  • EXPANSION OF BUSINESS

The Section 8 Company or NGO can expand business by inviting shareholders up to 200 (In case of a private company) but no limit for Public company and raised funds by inviting various venture capital or People by issuing equity shares.

 

  • INVITE FDI (FOREIGN DIRECT INVESTMENT) OR DONATIONS

The Section 8 Company or NGO is the best form to invite FDI from abroad and it’s a very good vehicle to invite foreign national (foreign capital) to become shareholders/members of the Section 8 Company or NGO by issuing equity share capital.

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