NGO

NGO


NGO ( Basic )

Rs. 13999

2 Digital Signature Certificates

2 Director Identification Numbers

Name Approval

Stamp duty on INR 1 Lakh Authorized Capital

Company Incorporation

MOA & AOA

PAN

TAN

Section 8 Licence

NGO ( Standard )

Rs. 19999

2 Digital Signature Certificates

2 Director Identification Numbers

Name Approval

Stamp duty on INR 1 Lakh Authorized Capital

Company Incorporation

MOA & AOA

PAN

TAN

Section 8 Licence

Trademark Application

NGO ( Premium )

Rs. 24999

2 Digital Signature Certificates

2 Director Identification Numbers

Name Approval

Stamp duty on INR 1 Lakh Authorized Capital

Company Incorporation

MOA & AOA

PAN

TAN

Section 8 Licence

Trademark Application

Income tax return filing

Laws in India applicable to an NGO

NGOs can be registered in India under any of the following laws:

  1. Trust under Indian Trusts Act, 1882
  2. Society under Societies Registration Act 1860
  3. Section 8 Companies under Companies Act, 2013
Online NGO Registration Process In India - SettleMyTax

Purpose of NGO – Section 8 Company


  • The main purpose of establishing a company as a Section 8 company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports, research, etc. Settlemytax always encourages any kind of NGOs and staying within government regulation and laws. The profits/incomes of the company if any are applied towards promoting the objectives of the company and are not distributed as dividends to its shareholders.
  • A minimum of two directors is required if the Section 8 company is to be incorporated as a private limited company, and a minimum of three directors in case of incorporation as a public limited company. The maximum number of members is 200 in the case of a private limited company, whereas for a public limited company, there is no such limit.

Pre-Requisites to the Registration Process


  • Obtain DSC (Digital Signature): Digital signatures of the proposed directors of the company are required as the forms for the registration process are filed online and should be digitally signed. Digital signature certificates (DSC) will be issued by the experts at SettlemyTax.
  • Apply for Director Identification Number (DIN): You have to apply for a DIN for the proposed directors of the company. The application for allotment of DIN has to be made in Form DIR-3. You have to attach the scanned copy of the necessary documents such as a self-attested copy of PAN, Identity and Address proof of directors along with the form and submit it online on the MCA Portal. The form must be attested by a practicing professional who can be a chartered accountant, a company secretary, or a cost accountant.

Form INC – 1

Form INC-1 is filed for the reservation of the name of the proposed company. But before quoting the name in the form, it is recommended that applicants access the free name search facility of existing companies available on the MCA portal. The system will provide a list of closely resembling names of the existing companies based on the search criteria. This will help you avoid choosing a name similar to that of an existing company. You can make up to 6 choices of names in the order of your preference in the form.

Form INC-12

Form INC-12 is filed for the grant of the license to operate as a Section 8 company. Along with this form, applicants are required to attach a draft copy of the Memorandum of Association (MOA) and Articles of Association (AOA). There is a prescribed format for Memorandum of Association of a Section 8 company in Form INC 13. The subscription pages of the MOA and AOA shall be signed by each subscriber along with their name, address, description, and occupation, in the presence of at least one witness.

Form INC 12 is to be submitted along with the following attachments :


  • INC-13 – Memorandum of Association
  • Draft Articles of Association
  • INC-15 for the declaration by each subscriber to MOA that the draft memorandum and articles of association have been drawn up in conformity with the provisions of Section 8
  • Estimated statement of Income & Expenditure for the next three years
  • List of proposed Promoters and Directors of the Company
One Person Company Registration - OPC Registration Procedure in India
One Person Company Registration - OPC Registration Procedure in India

Form INC 7 forms are required to be filed after the issuance of the license to the company:


Form INC 7

INC 7 is the application for the incorporation of the company. The following documents must be attached along with Form INC 7:

  • Memorandum and articles of the company duly signed by all the subscribers
  • An affidavit from each of the subscribers and first directors in Form INC 9, that they are not guilty of any offense or misfeasance

  • Declaration in Form INC 8 that all the requirements of the Companies Act have complied with

  • Address of correspondence till the registered office is official

  • Address and Identity proofs of all the subscribers to MOA and first directors of the company

COMPARISON- TRUST, SOCIETY & SECTION 8 COMPANY


PARTICULARS  TRUST  SOCIETY  SECTION 8 COMPANY 
Meaning  It is an agreement between parties, whereby one party holds the ownership of property for the benefit of another party. It is a collection of persons, who come together for initiating any literary, scientific or charitable purpose. It is an enterprise formed with a commercial, social, charitable or any other such objective and intends to apply its profits for promoting such objectives.
Registration  As NGO/ NPO. As NGO/ NPO. As NGO/ NPO, enjoying the privileges of a limited company but without using the words “Limited” or “Private Limited” in its name.
Governing law  The Indian Trusts Act, 1882 for Private Trusts and general law for Public Trusts except states like Gujarat, Maharashtra where they have separate public trust acts. The Societies Registration Act, 1860. The Companies Act, 2013.
Registering authority  Deputy Registrar of the relevant area. Registrar or Deputy Registrar of Societies of the State. Registrar of Companies (ROC) or Regional Director.
No. of minimum members required at the time of registration  Minimum 2 trustees. Minimum 7 members. Minimum 2 directors and shareholders. Same person can be director and shareholder.
Geographical area of operation  Whole of India. State wise, but can operate in whole of India after taking All India Registration and becoming National Level Society. Whole of India.
Main documents supporting the formation  Trust deed. Memorandum of Association and Rules & Regulations. Memorandum of Association and Articles of association.
Legal title of property  Vests in the hands of trustees. Held in the name of the society. Held in the name of the company.
Cost factor  Low. Medium. High.
Preference in case of Grant of subsidy by the Government  Not much preferred. Not much preferred. Mostly preferred.
Registration under the Income Tax Act, 1961  Yes, allowed. Yes, allowed. Yes, allowed.
Preference in case of Foreign Contribution Regulation Act (FCRA) registration  Not much preferred. Not much preferred. Mostly preferred.
Transparency in working details  Not much. Not much. High, because of online availability.
Annual compliance requirement  There are some annual compliance requirements depending on whether the trust is Private trust or Public Trust. Annual filing of list of names, addresses and occupations of members of the Managing Committee of the society, with the Registrar of Societies. Annual compliance of filing of accounts and filing of annual return of Section 8 company, with the Registrar of Companies (ROC).