NGOs (Non-Governmental Organizations) play a vital role in social development and economic welfare for the people of the state. NGOs in India are continuously operating with the motive of specific social development programs and welfare activities for the development of Urban and Rural Communities.
Unlike other forms of entity, it is not owned by any individual nor is the profit shared amongst them. Thus the profit incurred by NGOs is re-invested or spent on fulfilling the objectives of such NGOs. Operation of NGOs is governed through their:
- Owned fund
- The fund received by volunteers
- The fund received through donation
- Government grant or donation
Societies Registration Act 1860 is the governing act for registration of NPO all over India. As per the Act, 7 people can subscribe to MOA to register a society in India. Memorandum is the charter of the corporation that includes name, objectives, details of the community, etc. NGO can be defined as a group of the association having definite cultural, educational, economic, religious, and social objectives.
NGO registration in India can be categorized into three types:
- NGO registration as a Trust: Few states have their trust act to regulate its registration in that particular state. In case there is no separate act, the Indian Trust Act 1882 provides the following registration process for NGO registration as a trust:
- Initiate the process by preparing a trust deed that contains the following details:
- Name and address of settler and trustee
- Name of the trust with which it will be registered
- Objects of the trust
- Rules and regulations for trust operation
- Approach the trusted registrar along with documents. The settler must be physically present along with two witnesses along with their original Ids.
- Upon the completion of the registration process, Registrar then allots the registered copy of the trust deed along with the registration certificate.
- NGO registration as a Society: Society is registered and operated in UP as per the Societies Registration (Uttar Pradesh Amendment) Act, 1976. Society can be registered with ease in UP through the following steps:
- Submit the declaration in an affidavit along with supporting documents to the concerned Society Registrar of UP.
- As per the guidelines in society registration act, prepare the memorandum and bye-laws of the society that shall be for charitable purposes only and must be signed by at least 3 members.
- Pass the necessary resolution of all the members for approving the name of the society as agreed by all the members
- Once the entire process is completed, the Registrar shall issue the registration certificate.
- NGO registration as a Section 8 Company: Following is the step by step registration of the Company as an NGO:
- Prepare the complete list of documents to need to be attached with an application
- If the director didn’t hold the valid DSC, apply for DSC of the directors.
- Apply suitable name of the Company through web service RUN on MCA.
- Draft MOA & AOA for regulating the operations and activity of NGO
- Upon receipt of the application, ROC scrutinizes the form and allots Certificate of Incorporation in case the application is correct in all aspects.
NGO can be registered as follows:
- Trust: NGO can be registered as a public charitable trust in India. Such trust can be established with several objects such as relief of poverty, education, medical, provision for the facility of recreation. Registration is governed through the Indian Trust Act.
- Societies: Societies are the associations registered with the objects to promote charity, religion, culture, art, education, etc. Society registration is governed through the Society Registration Act which, has been applicable in a few states.
- Section 8 Company: Section 8 Company can be registered under Companies Act 2013 with limited liability. Such a company has main objects of promoting arts, science, religion, culture, charity and the like. Provided unlike other companies, no profit incurred shall be distributed to its members.
Features of NGO that makes it unique with any other form of association:
- NGO is a not for profit organization registered and regulated at local, national, or international level with the primary objective to serve society for its welfare and development.
- NGO is registered as a voluntary association of person working together with mutual objectives
- The operation of NGOs is free from government interference and is governed through its regulation which is followed by its members.
Here are general key-points to be kept in mind before starting NGO:
- First of all, list down all the causes and missions for starting NGO. Prepare the draft of a clear statement reflecting the purpose for which it stands for.
- Set up the body that will be responsible for the administration of NGOs such as the board of directors and members who shall be the like-minded knowledgeable people.
- After that decides the name of NGO by mutual agreement of all the members which shall not be similar with any name registered of government authority, board, ministry, etc.
- Prepare MOA and AOA of NGOs consisting of bye-laws for regulating the operations and activities of NGOs.
- Get your NGO registered as per the three types already discussed above, i.e., as a Trust, Society or Section-8 Company
- Once NGO gets established, collect the funds to run NGOs from various sources such as internal sources like donation, fees, etc. or external sources such as government institutes, private organizations, foreign resources, etc.
Following documents shall be annexed with the application of NGO registration:
- Memorandum, Article of Association and bylaws duly signed by the members
- Address proof of the registered office
- Residence proof of all the member of society, such as electricity bill, voter id, DL, mobile bill, etc
- NOC from the landlord in case the premise is not owned
- Affidavit from president
- List of members desirous of subscribing memorandum.
NGOs play a vital role in filling the gap between government and society and develop society through providing humanitarian, education, health care, social human rights, environmental rights, etc. However, it lacks in the area of quality in terms of skill and employment opportunity due to its non-profit objective.
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