NGO Registration in India

NGO stands for non-governmental organization. While there is no universally agreed-upon definition of an NGO, typically it is a voluntary group or institution with a social mission, which operates independently from the government.

NGOs or similar organizations exist in all parts of the world. What is considered an NGO in one country may not qualify as an NGO in another, as legal definitions, permitted activities, monitoring, and oversight differ from country to country. The term can encompass many types of organizations.

In India, NGO can be registered under 3 Seperate Act i.e Companies Act, Society Act and Trust Act.

NGO registered under Society Act or Trust Act are state specific which are required to obtain registrations from the specific state registrar to operate in the particular state in which it is registered.
Whereas, NGO registered under Companies Act is registered by Ministry of Corporate Affairs and not any specific state government.

Types of NGO that can be registered in India

Charity

A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, religious or other activities serving the public interest or common good).

The legal definition of a charitable organization (and of charity) varies between countries and in some instances regions of the country. The regulation, the tax treatment, and the way in which charity law affects charitable organizations also vary. Charitable organizations may not use any of their funds to profit individual persons or entities. (However, some charitable organizations have come under scrutiny for spending a disproportionate amount)

Civil Society Organization (CSO)

A civil society organization (CSO) is a group of people that operates in the community in a way that is distinct from both government and business.

Social Benefit Organization (SBO)

A Societal Benefit Organization (SBO) is an entity that is a for-benefit, for-society, for-profit, or nonprofit that either generates an earned income but gives top priority to an explicit social and/or societal mission or seeks a social and/or societal benefit without generating income. This approach can be found across a wide range of educational and academic institutions and industries. SBO’s pursue a myriad of important social/societal goals such as facilitating or achieving broader impacts, facilitating or achieving valorization and knowledge mobilization, and community engagement.

Grassroots Support Organization

Grassroots Support Organizations (GSOs) are a specialized subset of Intermediate Non-Governmental Organizations (INGOs) that provides services and support to local groups of disadvantaged rural or urban households and individuals.

In its capacity as an intermediary institution, a GSO forges links between beneficiaries and the often remote levels of government, donor, and financial institutions. It may also provide services indirectly to other organizations that support the poor or perform coordinating or networking functions.

Non-State Actor (NSA)

A non-state actor (NSA) are organizations and/or individuals that are not affiliated with, directed by, or funded by any government.

The interests, structure, and influence of NSAs vary widely
For example, among NSAs are non-profit organizations, labor unions, non-governmental organizations, banks, corporations, media organizations, business magnates, people's liberation movements, lobby groups, religious groups, aid agencies, and violent non-state actors such as paramilitary forces.

Council

A group of people chosen to give advice, manage affairs, etc. for a particular organization or activity

Non-Profit Organization (NPO)

A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrary with an entity that operates as a business aiming to generate a profit for its owners.

Citizen sector organization (CSO)

Not for profit and is community based whose gains are used to achieve social purpose

An advocacy organization

Advocacy groups, also known as interest groups, special interest groups, lobbying groups or pressure groups use various forms of advocacy in order to influence public opinion and ultimately policy. They play an important role in the development of political and social systems.^[2]

Motives for action may be based on political, religious, moral, or commercial positions. Groups use varied methods to try to achieve their aims, including lobbying, media campaigns, awareness raising publicity stunts, polls, research, and policy briefings. Some groups are supported or backed by powerful business or political interests and exert considerable influence on the political process, while others have few or no such resources.

Some have developed into important social, political institutions or social movements. Some powerful advocacy groups have been accused of manipulating the democratic system for narrow commercial gain and in some instances have been found guilty of corruption, fraud, bribery, and other serious crimes; Some groups, generally ones with less financial resources, may use direct action and civil disobedience and in some cases are accused of being a threat to the social order or 'domestic extremists'. Research is beginning to explore how advocacy groups use social media to facilitate civic engagement and collective action.

Residents Welfare Association

A resident welfare association (RWA) is a Non-governmental organization that represents the interests of the residents of a specific urban or suburban locality or a colony.

Research Lab

Research laboratories, or “labs”, are NGO's indicated to execute experimental tasks which may aim for new discoveries and advances in science, literature, culture, medicine etc.

Forum

An organisation created place or meeting where people can exchange and discuss ideas

Foundation

A foundation is an NGO which is been working for Non-profit causes

Lets understand the process of NGO Registration under Companies Act

Following are the steps for NGO Registration which are needed to be followed

Step 1: Name Approval
The first step in NGO Registration is to make an application to the Registrar of Companies for name approval of the NGO.
The name of the NGO under Companies Act can end with the following words:
– Foundation
– Council
– Association for Research and advocacy
– Association (Education Association etc)
– Forum
– Federation
– Akhara
– Club
The list is only inclusive and not exclusive. Many other type of names can also be chosen.
One can also proceed directly with the application of registration without getting the name approved. Though it is advisable to reserve the name of the company first instead of proceeding with the application without name approval which makes the entire process way more simple.

Once the name approval application is made, it might take 2 working days for either its approval or resubmission, if the approval is granted then we can proceed further with the process but if the form comes for resubmission due to non-availaibility of the name then a new name is to requested for approval which might again take approximate 2 working days for approval. While waiting for the name approval, one can simply proceed with the step 2.
Step 2: Obtaining Digital Signatures of the proposed directors/promoters
The second step for NGO Registration is to obtain digital signatures for all the proposed directors and promoters
Step 3: Filing of application using SPICe+
Once the name is approved and Digital Signatures are prepared the next step for NGO Registration is to start with filing the application with SPICe+ form. In the form, all the required information along with documents are to be attached and provided.
Step 4: Memorandum of Association, Article of Association and Agile
Once the SPICe+ is filled and relevent documents attached. Memorandum of Association, Article of Association and Agile form are to be prepared for NGO Registration.
Step 5: Affixing of Digital Signatures
Once step 4 is complete, all the forms will then required to be downloaded for applying digital signatures of Directors and a Practicing Chartered Accountant for NGO Registration.
Step 6: Form Upload and Registration of Company
After step 5, the form needs to be uploaded with MCA. Once the form is uploaded, Registrar of companies go through the forms and if everything is in order then a Certificate of Incorporation along with PAN and TAN of company is issued or else the form is sent for resubmission with detailed reasons, the same then will need to be resubmitted resolving the queries of the officer.

Documents required for NGO Registration

(Proposed) Founders Documents

1. PAN Card of all the Founders
2. Aadhar Card of all the Founders
3. Past 2 months bank statements of Founders
4. Mobile number and Email ID of Founders
5. Passport size photographs of Founders
6. Birth Certificate
7. Last Education Degree/Marksheet (if any)
8. Voter ID, DL or Passport (any one)

Registered Place of Business Documents

1- Utility Bill (Electricity Bill)
2- Consent Letter
3- Property Owner Aadhr Card
4- Property Owner Mobile Number

Engagement Letter

Frequently Asked Questions

What are the Compliances to be done after NGO under Companies Act, 2013

Once the NGO is registered, every NGO needs to complete mandatory compliances under Companies Act as follows:
1- Auditor Appointment and Common seal adoption within 1 month
2- Obtain Commencement of Business Certificate
3- Board Meetings, Annual General Meeting, Notice and Resolutions
4- Registers, Share certificates, Annual Returns, Accounting
5- Audits, Income Tax Retuns, GST Returns, TDS Returns, ESI & PF
Note: The above list is not exclusive and other compliances also needed to be done on yearly basis under various laws in India.