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(TRUST + NGO + SOCIETY + SECTION 8) Registration - An Overview

PROCESS

An applicant must follow numerous rules and procedures established in the respective act depending on the kind of NGO Registration (trusts, societies, and Section 8 businesses).

NGO Registration Procedure (As A Trust)

The procedure for Trust registration involves the below-mentioned steps-

Select An Appropriate Name

The very first while registering the Trust is to select an appropriate name for the trust. An applicant must take into consideration that the name so suggested should not come under the restricted list of names as per the provisions of the Emblems and Names Act, 1950.
Drafting Of Trust Deed

For the purpose of Trust registration, the Trust deed should be drafted. A trust deed is a document that contains all the important information related to the registration and the deed must be present before the Registrar at the time of registration.
Selecting Settlers And Trustees Of The Trust

The next step is to select the settlor and Trustees of the Trust. However, there is no specific provision with regards to the number of settlers/authors. Further, there must be a minimum of two trustees to form a Trust.
Preparing Memorandum Of Association

For Trust registration it is important to formulate the Memorandum of Association as it represents the charter of the Trust.
Paying The Requisite Fees

The next step is to pay a requisite fee for Trust registration.
Collection Of A Copy Of Trust Deed

Once an applicant submits the papers; he/she can collect a certified copy of the Trust Deed within 1 week from the registrar’s office.
Submission Of The Trust Deed In Registrar

After obtaining a certified copy of the Trust Deed, submit the same with the local registrar. The Trust deed shall be submitted along with properly attested photocopies.
Obtain The Registration Certificate

After submitting the Trust Deed with the registrar, the registrar keeps the photocopy and returns the original registered copy of the Trust Deed to the applicant, and also issues the certificate within seven working days.

NGO Registration Process As (Section 8 Company)

For NGO registration as Section 8 Company, an applicant needs to follow the below-mentioned steps:-

Step-1-Apply For DSC

The very first step is to apply for the Digital Signature Certificate. DSC is used for affixing the signature in the electronic forms.
Step 2: Name Reservation Through SPICE+

The procedure for name reservation of Section 8 Company is similar to other companies. For the same, click on the ‘SPICe+’ Form placed under ‘MCA Services’. SPICE+ form is used for name reservation of the company that includes all the steps right from the Name Reservation to Post incorporation compliances.

The applicant of Section 8 Company has to fill the name he/she wants to reserve for Section 8 Company. Provided the name shall include the words, such as:-

• Federation,
• Chambers,
• Foundation,
• Forum,
• Association,
• Confederation,
• Council, and the like, etc.
STEP-3-: Submission Of SPICE+ Part A Form

The applicant needs to submit the SPICE+ Part A form for Name reservation and incorporation purposes. (DIN Application is also included in the SPICE+ form).
Step-4-Filing SPICE+ Part B

After submitting the SPICE+ Part A, the next step is to download SPICE+ Part B in PDF for incorporation purpose in format for filling the related forms are-

• SPICe+AoA,
• SPICe+MoA,
• AGILE-PRO,
• INC-9 and URC-1) and for affixing the “DSC,”.
Step-4-Preparing MOA & AOA

After the proper filing of the SPICE+ form, an applicant has to file MOA and AOA form Dashboard Link. All the details which are common in PART-B shall be auto-fill in MOA and AOA. Both the forms are web-based forms.

An applicant is required to fill in all the details in the MOA/ AOA as per the requirement of Schedule I. Also, affix the Digital Signature Certificate of all the subscribers and professional on the portal for the same.
Step 5: Filing The Details In AGILE PRO

The next step is to fill all the details in the AGILE PRO form. Similar as Part A, the details that are common in PART-B shall be auto fill in AGILE Pro. AGILE PRO includes-
• GST-Optional
• EPFO/ ESIC-Mandatory
• Bank Account-Opening the bank account through this form.
Step 6: Fill Requisite Details In INC-9

INC-9 includes the declaration by the subscriber or First director.
Step 7: Filing Of Forms With MCA

An applicant shall file the respective forms with MCA after filling all the requisite details in SPICE+ and AGILE PRO. After successful submission, the documents can be submitted, and DSC can be affixed in the respective form.
Step-8-Pre-Scrutiny Check And Payment Of Requisite Fees

The next step to be followed is to do a pre-scrutiny check. After a successful Pre-scrutiny check, the applicant must click on the confirmation button. Also, the applicant company is required to pay a requisite fee for “Section 8 Company” registration.
Step-9-COI From The Registrar

If the Registrar finds the information and the documents appropriate; he will issue a Certificate of Incorporation to the applicant company.

NGO Registration Process As (A Society)

For NGO registration as a Society, the founding members must first choose-A unique name for the Society and, Preparing the Memorandum of the Society

Choosing A Name For Society
While selecting a name for the society, it is essential to keep in mind that as per Societies Act, 1860, that name should be unique and un-identical. Further the name propose by the applicant must also not suggest patronage of the Government of India or any State Government or attract the provisions of Emblem an Names Act, 1950.
Preparing The Memorandum Of A Society
While registering the society, an applicant shall prepare the Memorandum of society. The Memorandum of the Society along with the Rules and Regulations of the Society must then be signed by each of the founding members, witnessed by-
• An Oath Commissioner,
• Notary Public,
• Gazetted Officer,
• Advocate,
• Chartered Accountant or
• Magistrate 1st Class with their official stamp and complete address.
Prepare Documents
An applicant shall prepare the below-mentioned documents required for Society registration. The documents shall be duly signed.
• Name of the society
• Address proof of the working space.
• Identity proof of all the 9 members
• 2 copies of the Memorandum of Association and By-laws of the society
Filing Of Application
An applicant shall file the signed Memorandum and Rules and Regulations with the concerned Registrar of Societies in the State with the prescribed fee.
Get Society Certification
Once the documents are submitted and the Registrar is satisfied with application for Society Registration, he would certify to deem the Society to be registered.

Documents Required for TRUST Registration

For Trust Registration

Objective of the Trust Deed.
Particulars of the Trustee and settlor (Self-attested copy Id and Address Proof along with the information related to occupation).
Trust Deed on Proper Stamp Value.
Photographs of Trustee and settlor.
PAN Card of Trustee and settlor.
Documentation for the Trust Registered Address. In the case of rented property (NOC from the Landlord is required).

Documents Required for SOCIETIES Registration

For a society registration, below-mentioned documents are required:-

Name of the society
Address proof of the working space.
Identity proof of all the 9 members
2 copies of the Memorandum of Association and By-laws of the society

Documents Required for SECTION 8 COMPANIES Registration

Copy of Identity Proof and Address Proof (Including PAN Card).
DIR-2(Consent of the directors) along with ID& Address proof
Utility bill not older than 2 months
Proof of registered office address
No objection certificate is required if the registered office is not taken on rent.
Affidavit regarding deposits
INC-14 -Declaration by Professionals
INC-15-Declaration by Promoters (INC-14 and INC-15 shall be on the stamp paper, duly notarized).
Estimated Annual Income
Memorandum of Association and Articles of Association
Particulars of the promoters as well as Board Members of the proposed company

Benefits of NGO Registration

Below-mentioned are the benefits of NGO Registration:-

Avails Tax Exemption

Registering the firm as an NGO under the Companies Act, 2013 allows it to take advantage of many financial benefits, such as being exempt from a variety of taxes, which allows the company to save money on taxes and invest it in new projects.
Right To Acquire Assets

When your company is properly registered, it is able to buy land, own fixed assets, and/or take on liabilities under its common seal. It is illegal for an unregistered organisation to purchase, hold, or sell land in any state.
No Minimum Share Capital Requirement

To operate autonomously, no minimum share capital is required. Donations to NGOs can be used to directly fund them. As a result, NGOs do not require a bigger share capital to operate freely.
Protection From Personal Liability

You can purchase, acquire, and register assets and stakes in your NGO & name. This is a highly well-kept method of shielding yourself from endless obligation in the event of an unfavourable event like as foreclosure, bankruptcy, judgement debt, or divorce
Transfer Of Ownership

NGOs incorporated under the Companies Act, 2013 are not limited from transferring their ownership or claims of the interests received under the Income Tax Act of 1961.
Corporate Entity

Your company transactions and interactions with the community will improve as a result of this. In addition, the NGO can sue to enforce its legal rights or be sued by its registered trustees.
Exemption On Stamp

Duty Section 8 corporations that qualify as non-profit organisations are exempt from stamp duty under the Income Tax Act, allowing the company to save money on taxes. All of the taxes saved by avoiding stamp duty are subsequently used to promote the company goals.
It also aids in the protection of finances for the organisation, which aids in the easier operating of the company and increased production.
Structured Financial Plan

Having an NGO can provide you with a tax-free mechanism for the activities you carry out on behalf of the registered NGO. Non-profit organisations are excused from paying taxes because they are not for profit. You can create a well-structured financial plan that permits your company to operate without incurring any tax liabilities.
Stability Of Entity

Your organization registration may imply that it has effective and accountable leadership in place. When compared to an unregistered group, the public will regard it as more stable. Political parties, the government, donor agencies, financial institutions, charity groups, and other non-governmental organisations (NGOs) will all wish to work with a recognised organisation to achieve common goals.
Perpetual Succession

This indicates that an NGO has an indefinite lifespan and will continue to exist even if the founders or trustees die or quit the organisation. The organization’s existence will come to an end only if it is formally wound up by an Indian court order. This, among other things, may allow for eternal succession.
Admission To Credit
By registering as a non-profit organisation, you can gain access to credit from lenders and financial organisations. A lending facility can be used to promote the organization’s activities, fund a mortgage, or purchase land or fixed assets. Banks will need proof of registration as a condition of granting a loan.
Name Preservation
Once your organisation is registered, no one else in India can use the same or a similar name. This offers the added benefit of preventing illegal usage of your company’s picture and name.
Opening Bank Account
The fact that the NGO has opened a corporate account with a bank may indicate that it is transparent. Some private individuals, government agencies, donor agencies, and other NGOs will be hesitant to write you a check in your personal name on behalf of your organisation. A bank account for the NGO would be a proof of its legitimacy and ready to accept donations. To be able to create a bank account, you must show confirmation that your organisation is registered.

Documents Required for SECTION 8 COMPANY INCORPORATION Registration

1) Identity proof of Directors
2) Address Proof
3) Address proof of company registered office (Rent agreement, Possession letter etc.)
4) Electricity Bill of the office building
5) Bank statement/ passbook of the directors
6) Trademark Registration Certificate (if any)

REGISTRATION PROCESS

1) Obtain DSC (Digital Signature Certificate) It’s necessary to apply for a Digital signature of the designated partners before starting the private limited company registration.
2) Apply for Director Identification Number
3) Name Approval and its Reservation The section 8 company name approval is an important step to establish a company.
4) Application for License Form INC 12 is filed with the ROC of the same state in which the company is being incorporated, is to be filled for the issuance of a License with the following attachments:
5) Preparation of form INC 32.
6) Approval of the documents

ADVANTAGES OF SECTION 8

Distinct Legal Identity: .
1) Zero Stamp Duty: A Section 8 Company is exempt from the requirement of paying stamp duty on the MoA and AoA of the private or public limited company, which is applicable for registration of other kinds of company structures.
2) No Minimum Capital Requirement
3) Tax Benefits: For Section 8 Companies in India, many tax benefits are granted.
4) Credibility: Section 8 Companies are more reliable than all other forms of charitable organizations. They are governed by the Companies Act and are regulated strictly.
5) Exemption to the donors.
6) Membership