NGO/Trust/Society

NGO Registration

Introduction

Section 8 Company registration is named as Section 8 of the Companies Act, 2013, which pertains to be established for the promotion of commerce, art, education, charity, research, social welfare, science, sports, religion, protection of environment or such other objects, provided profits, if any, or any other income is incurred for promotion of the objectives of such company, and also,  no dividends are paid to its members.

There may be various forms of a charitable organizations in India and such organizations can be registered as societies, trusts, or as a non-profit company incorporated under the Section 8 of Companies Act, 2013.

The name of “Section 8 Company” can be ended with the foundation, without addition to its name of "Limited", or as the case may be, the terms "Private Limited" in accordance of Section 8(1) of the Companies Act, 2013.

Section 8 Company Registration has higher credibility amongst donors, Government departments and other stakeholders.
 
Incorporation of the Section 8 Company is similar to Trust or Society or NGO Registration, but Section 8 Company is registered under Central Government's Ministry of Corporate Affairs whereas the Trusts and Societies are registered under state government norms and regulations.
 
Registration procedure of a Section 8 Company is that of similar to private /public company as the case may be except additional requirement of taking license from Central Government after name approval. We at MAG provides best services for NGO Registration in Delhi.

Documents Required

• Self-attested copy of the PAN Card of all the proposed directors.
• Self-attested copy of ADDRESS PROOF (Voter ID/DL/Passport/Aadhar Card) of all the proposed directors.
• Self-attested copy of the Bank Account Statement/Electricity Bill/Mobile Bill of all proposed directors.
• 4 Photographs of passport size of all proposed directors.
• Duly signed DSC Form of all the directors of proposed company.
• Copy of the current Electricity Bill/Water Bill/House Tax  for the proposed premises to be used as the registered office for the proposed company.
• If the property is rented, then the Rent Agreement and NOC from the owner of the property.

Information Required Concerning Section 8 Company Registration

Directors Detail:

• Educational qualification of all the directors.
• Profession/occupation of all the directors with an area of operation
• Citizenship along with the residential status of all directors
• Place of birth of all directors
• Permanent & the present residential status of all directors
• Mobile numbers of all directors
• Email IDs of all directors

Company Details:

• Preference-wise proposed names of the company with significance of name
• The state in which the company is to be registered.
• Authorized and paid-up capital of the proposed company
• The main object of the proposed company
• Division of paid-up capital among subscribers
• Number of the proposed directors
• Number of the proposed to be shareholders
• Whether promoters are carrying on any partnership firm or sole proprietary or unregistered entity in the name as is applied for?
• Whether the proposed name(s) contain(s) the name of any person other than promoter(s) or any of their blood relatives?
• Whether the proposed name(s) include(s) name of the relatives?

2. Trust Registration Process

Introduction

In order to register Trust, organization needs to be in compliance with the Indian Trusts Act, 1882. Following the act, there are a few pre-requisites that an organization needs to be ready within order to form the Trust. Here are the pre-requisites:

• Name for the Trust
• Registered Address dedicated for the Trust
• Objects/Objectives of the Trust
• One seller of Trust
• Two Dedicated trustees of Trust
• Property (Movable or Immovable) of the Trust

Once, all the pre-requisites are ready, and just put together in a Trust Deed. We at MAG provides best services for Trust Registration in Delhi.

To make a trust deed, the following information needs to be furnished:

• The deed should be done on a stamp paper of given value
• The passport size photographs and the identity proof of the seller
• The passport size photographs and the identity proof of the 2 trustees
• The passport size photographs and the identity proof of the 2 witnesses
• The seller's signature on all pages of deed

Procedure for NGO Trust registration

Step 1: You are required to fill your details in our simple online questionnaire.
Step 2: We will assist you in gathering the pre-requisite documents
Step 3: Based on the details provided by you for Trust Deed registration, a Trust deed will be compiled
Step 4: The trust deed so compiled will be submitted to the relevant local registrar for registration
Step 5: Once your Trust NGO is registered, we shall send you Trust Deed via courier.

3. Society Registration Process

Introduction

Process of NGO registration is same as a society in India is governed under the regulations of the Societies Registration Act, 1860. We at MAG provides best services for Society Registration in Delhi. The registration of a Society NGO in India requires two essential things:

• Memorandum of Association
• Laws and Rules of the Society

To form Memorandum, it is important to fill the FIVE CLAUSES of Memorandum of Society.

• Name Clause
• Domicile Clause
• Objects Clause
• Liability Clause
• Capital Clause
• Subscription Clause

For setting rules and regulations of the company, your formulation should answer the following essential QUESTIONS:

• How do you become a member and subscriber to the society?
• What rules and regulations apply to society and its members?
• How are meetings organized?
• How is governing body of society formed?
• When and how will auditors of the society be appointed?
• How will the legal matters be settled?

Procedure for NGO Society Registration

Step 1: You are required to fill your details in our simple online questionnaire.
Step 2: Based on the details provided we will start drafting the society registration Application
Step 3: Preparation of the Memorandum of Association according to the clauses.
Step 4: Based on rules, you want to set up for the NGO, we will include the same in your NGO registration application.
Step 5: Once your society is registered, we shall send you Society Registration via courier.

Advantage of Section 8 company incorporation

• Ease of formation:

   Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. A registered partnership firm can be a member of its capacity.

• Limited liability:

   The most significant benefit of the Section 8 company is limited liability. If any liability arises, then its members are not personally affected; members are only liable for the unpaid shares held by them and not more than that. Being the most significant advantage of this type of company, it means that owners are not personally responsible for the business debts and the obligations of incorporation.

• Separate legal entity:

   This is most prominent quality of  a Section 8 Company. It refers to statement that the company and its members are entirely distinctive. The most significant advantage of a Section 8 company is that its identity is distinct from that of its members. A company is separate person having its rights and obligations.

• Continuity of existence:

   Death, insolvency and insanity of any of the member does not affect continuity of the company. Thus, life of the company does not depend upon the experience of its members. In case of death of owner or transfer of shares, your business will not be affected. There will be no effect on the firm's continuance.

• The minimum number of shareholders:

   The minimum members need to start the business is only 2.

• Greater flexibility: A Section 8 Company

   needs to perform minimum legal formalities as compared to the public company. It enjoys many special exemptions and privileges under the company law.

• Tax benefits: Section 8 company

   is not required to publish its accounts or file several documents. Therefore, it is in a better position than public company to maintain business secrets.

• Owning property:

   Company is a legal person, can acquire, hold, enjoy and alienate, property in its name. No shareholder/director can make any claim upon the property of the company so long as the company is a going concern.

• Capacity to sue/be sued:

  Company being a legal person has the full right like natural person to institute the legal proceedings against or to bring a suit in a court of law and also can be sued in its name.

FCRA Registration

Societies, Charitable Trusts, Section 8 Companies that receive any donation or foreign contribution from foreign sources must obtain registration under Foreign Contribution Regulation Act, 2010. 

Eligibility criteria for obtaining FCRA Registration

Organizations seeking foreign contributions for cultural, economic, religious, social or educational programs may obtain FCRA registration or receive foreign contributions through the “prior permission” route. An FCRA applicant should be a Trust or Society or a Section 8 Company. While making the FCRA application, the not-for-profit entity must have been in existence for a minimum of three years and should not have received any foreign contribution before that without the approval of the Government. The entity seeking registration should have spent at least Rs.10,00,000/- (Rupees Ten Lakhs) over the last three years on its aims and objects, excluding administrative expenditure. Chartered Accountant shall duly audit the Statements of Income & Expenditure for the previous three years are to be submitted to confirm that it meets the financial parameter.

Suppose a newly registered entity would like to receive foreign contributions. In that case, approval for a specific activity, purpose, and source through the Prior Permission (PP) method can be made to the Ministry of Home Affairs.Form FC-3 is the application for FCRA registration. 

On registration, FCRA is granted for five years. The renewal application of FCRA registration can be made six months before the date of expiry to keep the registration valid.. 

If you want to know more about trust vs society in detail or if you have any queries or seek services related to the registration of Trust, Society and NGOs, you can reach us at info@manishanilgupta.com.