NGO can be registered in 3 different structures.
- Trust under Indian Trusts Act, 1882
- Society under Societies Registration Act 1860
- Section 8 Company under Companies Act, 2013
The Section 8 company can be registered only with the objective to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports, research, etc.
The profits/incomes of the NGO if any, cannot be distributed as dividend but can only be applied towards the objective of a NGO
What are the documents required to register a section 8 Company/NGO?
The documents required are as follows:
- Pan, Aadhar and any utility bill of the proposed directors and shareholders.
- Rent Agreement and electricity bill of the proposed registered address.
The process is a bit long and it takes around 25-30 days to get the company registered. The basic steps involved are as follows:
- Obtain Digital signatures of all the directors
- Apply for DIN
- Apply for Name Approval
- Prepare MOA, AOA and declaration in INC 13, INC 15
- Get a certificate from a Chartered Accountant
- Apply For license of NGO
- Once the License is approved the final step is to file INC 7 and get the registration certificate
The process is a tedious one and can be completed in 25 days.