NGO Registration Delhi & NCR, FCRA, Trust, Society Registration

NGO Registration

NGO Registration means Non-Governmental Organization. It is also called as not for profit Organization or NPO. In India, there are 3 ways in which a NGO can be registered i.e

  1. Trust
  2. Society
  3. Company u/s 8 of Companies Act, 2013

Comparison between Trust, Society and Section 8 Company


  Low preferenceLow preferenceHigh preference

BASIS TRUST SOCIETY SECTION 8 Co.
HOW IT IS GOVERNED Indian Trust Act, 1882. Societies Registration Act 1860, which is an all-India Act Indian Companies Act, 2013.
COMES UNDER WHOSE JURISDICTION Deputy Registrar/Charity commissioner of the relevant area Registrar of societies (charity commissioner in Maharashtra). Regional Director & Registrar of Companies of concerned state.
WHAT IS MAIN DOCUMENT REQUIRED Trust Deed MOA and Rules and Regulations MOA & AOA
WHETHER STAMP DUTY IS CHARGED Trust deed to be executed on non-judicial stamp paper, vary from state to state No stamp duty required for MOA and Rules and Regulations No Stamp Duty Required
MINIMUM MEMBERS REQUIRED 2 7 for local and 8 for national level 2
MANAGED BY WHOM Trustees or Board of Trustees Governing Council or Managing Committee Board of Directors
LEGAL TITLE HELD BY WHOM Trustees holds legal title of property Properties held in the name of Society Properties held in the name of Society
CAN IT BE DISSOLVED Generally No. Can be dissolved with an approval of 3/5th members. Can be dissolved
WHAT IF IT BECOMES INEFFECTIVE/DISSOLVED If objects are not met, objects near to objects of trust will be added in deed On Dissolution, funds, and property not transferred to members Society but to some other similar society On Dissolution, funds, and property not transferred to members of Co. but to some other similar section 8 Co.
DOES ANNUAL RETURN TO BE FILED Not required Required to be filed with Registrar Required to be filed with ROC
ONLINE FACILITY AVAILABLE? Not available Not available Available
LEVEL OF DIFFICULTY OF COMPLIANCE AND TIME INVOLVED Time-consuming and Difficult Time consuming and Difficult Easy, Time saving and transparent procedure
TIME TAKEN FOR REGN. 10-15 working days 30-40 working days 60-70 working days
COST INVOLVED Low Medium High
CAN 12A AND 80 G BE TAKEN Yes Same Yes
WHETHER PREFERRED FOR GOVT. SUBSIDY/GRANT Low preference Low preference High preference
WHETHER PREFERRED FOR FCRA REGN.  Low preference  Low preference  High preference
TRANSPARENCY IN WORK Less Less Very High because everything is online
DIFFICULTY IN CHANGING TRUSTEES OR BOARD Easy Complex Easy
DIFFICULTY IN CHANGING REGISTERED OFFICE Difficult Difficult Easy

Procedures for Trust, Society & Section 8 Company

Procedure of Registration of Trust Normally, trust is registered with the Registrar/sub-registrar office. Minimum 2 members are required for registering Trust. Both members can be family members. The settlor or founder of trust can also be managing trustee. Settler has to compulsorily to be present before registrar whereas no need for trustee for mandatorily present.

For registration of Society, following steps are involved:

  • Name Search
  • You need to provide 3-4 proposed names of Society and we would get the name searched done and only names available for registration will be eligible.
  • Drafting of Memorandum and Rules of Society
  • Preparation of Application, getting it signed by all members and submission with government authorit
  • Getting the registered certificate.

Section 8 Company  Section 8 Company is a Company licensed under Section 8 of the Companies Act, 2013 (the Act), erstwhile known as Section 25 Company under the Companies Act, 1956, which has main object;

  1. For promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object,
  2. provided the profits, if any, or other income is applied for promoting only the objects of the company and
  3. No dividend is paid to its members.

Therefore, Section 8 Company is a company registered for charitable or not-for-profit purposes. Section 8 Company has various advantages when compared to Trust or Society. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders. Further, the key feature of a Section 8 Company is that name of the Company can be incorporated without using the word “Limited” or “Private Limited” as the case may be. (Note: Requirement of minimum capital under the Act shall not apply to Section 8 Company vide Notification of June 5, 2015). Procedure for Registration of Section 8 Company

  •  Minimum two people required for registration of Section 8 Company.
  • Obtaining Digital Signature Certificate (DSC) for proposed Directors not having Directors Identification Number (DIN)
  • Obtaining DIN from Ministry of Corporate Affairs by filing Form DIR-3, if not having DIN.
  • Filing of Form INC-1 for Reservation of Name.
  • Post approval of name from the concerned Registrar of Companies, file Form INC-12 {pursuant to Section 8 (1) of the Act and Rule 19 of Company (Incorporation) Rules, 2014} (the Rules)

     Attachments to Form INC-12

  • Draft Memorandum of Association of the proposed company in Form INC-13
  • Draft Articles of Association of the proposed company
  • Declaration by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant in Form INC-14
  • Declaration from each person making application in Form INC-15
  • Estimated Income and Expenditure for next 3 years.

(Note: Form INC-12 is in physical mode and the e-form is not yet available on MCA21 Portal. Thus, the same needs to be filed in Form RD-1 with prescribed fees). Attachments to Form RD-1 

  1. Form INC-12
  2. Draft Memorandum of Association of the proposed company in Form INC-13
  3. Draft Articles of Association of the proposed company
  4. Declaration by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant in Form INC-14
  5. Declaration from each person making application in Form INC-15
  6. Estimated Income and Expenditure for next 3 years
  7. The Central Government after examining grants the license in Form INC-16
  8. After obtaining the license, following forms need to be submitted with prescribed attachments
  9. Form INC-7
  10. A Form INC-22
  11. Form DIR-12
  12. Post Scrutiny of the submitted forms and documents the Corporate Identification Number (CIN) will be issued by the concerned Registrar of Companies.

As per section 35AC of the Act, if any business organization is making donation to such organization which has taken exemption certificate u/s 35AC, they will get 100% deduction of amount of donation made. However, they should check each year whether done organization is continuing to enjoy exemption/approval. The Central Government has specified various types of projects of national needs for which Charitable Organizations can make donations. Application in duplicate needs to be made along with specified enclosures to secretary of National Committee, New Delhi under rule 11F to 11-O, if they are carrying on any business. The National Committee may recommend or reject the project but when the approval is recommended then it is for a period of maximum 3 years and it could be further extended if the National Committee is satisfied with the performance during the period. A certificate has to be issued to the donor in Form 58A. This certificate will enable the donor to claim exemptions. The National Committee may withdraw the approval if the project is not carried out in accordance with the approved conditions. To withdraw a project National Committee should provide an opportunity of being heard to the aggrieved organization. Section 35AC provides deduction from income from business and profession. Similar deduction is also available u/s. 80GGA, for assessees having income from other heads. WHERE THE APPLICATION IS TO BE MADE The application for approval by the National Committee should be made to the Secretary, National Committee for Promotion of Social & Economic Welfare, Dept. of Revenue, Govt. of India, North Block, New Delhi – 110001.

Any organization who is willing to accept foreign donations/ contributions has to apply for FCRA before accepting such donation/contribution and such prior permission shall be valid for the specific purpose for which it is obtained and from the specific source.

  • Application needs to be filed online and hard copy of same shall be sent to Central Govt. within 30 days of submission.
  • In case application is refused, can make fresh online application after 6 months.
  • Separate and exclusive Bank account needs to be opened in order to receive the foreign contribution. Multiple bank accounts can be opened for receiving foreign contribution, however intimation on plain paper shall be furnished to the Secretary, Ministry of Home Affairs New Delhi, within fifteen days of the opening of any account.
  • An application shall be accompanied by a fee of 2000/- (Two Thousand only) in favor of the “Pay and Accounts Officer, Ministry of Home Affairs”, payable at New Delhi.
  • Field Enquiry- There may be inspection by intelligence bureau on request of FCRA department. On the basis of the reports submitted by the intelligence bureau, the FCRA department decides whether to accept or reject the application.
  • The FCRA department issues a registration certificate and provides a permanent registration number. This registration number is required to be quoted in all future correspondences and filling of returns and forms.
  • Validity of Certificate- Every certificate shall be valid for a period of five years from the date of its issue.
  • Time Limit for Making Application for Renewal of Registration- 6 months prior to date of expiry of the certificate of registration, for its renewal.
  • An organization implementing an ongoing multi-year project shall apply for renewal twelve months before the date of expiry of the certificate of registration.

Documents required for Trust, Society & Section 8 Company

Documents required for Registration of Trust

  1. Copy of trust deed in duplicate, one original one photocopy
  2. 3 Photographs of settler and all trustee
  3. Proof of ownership of property where business will be carried on
  4. Declaration on Rs 10 stamp paper either by owner or by settler if he is owner that he is owner of property and no objection in using such property for purpose of trust.

Trust Deed has to be executed on non-judicial stamp paper. For trust deed- stamp duty is 3% of capital. For registration 2 witness required with original ID and Address proof.

Documents Required for Registration of Society

  • Copy of PAN card of all 8 members
  • Copy of Address proof of all 8 members [ Any one of Voter id or Aadhar or Driving license or passport]
  • Passport size photograph of all members

You need to provide names of persons who would be PRESIDENT, TREASURER AND GENERAL SECRETARY, remaining 5 will be members of Governing Body

List of documents required:

  1. Identity Proof: Copy of Permanent Account Number (PAN) of all Directors/Promoters (Mandatory)
  2. Address Proof: Copy of valid Passport/Driving Licence/Aadhar/Telephone Bill/Electricity Bill (not older than 2 months)
  3. Latest passport size photographs of all Directors/Promoters
  4. Rent Agreement or Leave & Licence Agreement, if registered office premise is taken on rent
  5. Utility Bills of proposed registered office
  6. Consent to act as Director in Form DIR-2
  7. Directors Directorship details in other Companies/LLPs, if any.

DOCUMENTS REQUIRED FOR APPLYING 35AC EXEMPTION

  1. Application needs to be made in Duplicate either in Hindi or English.
  2. Name, address and status of applicant along with Income Tax ward/circle of applicant.
  3. Audited Balance Sheet, Profit& Loss Account or Income& Expenditure Account for the latest year and two preceding years.
  4. Document relating to constitution of NGO Registration like Trust Deed.
  5. Name and Address of present and past 3 years members who are/ were managing the affairs of the association or institution during the 3 years preceding the date of application.
  6. Copy of approval u/s 80G or 10(23c) if available
  7. Brief profile relating to activities of the association or institution during 3 years preceding the date of application or since inception if the association or institution is less than 3 years old.
  8. Any other information as the association or institution may like to place before the National Committee.

ADDITIONAL INFORMATION REGARDING THE PROJECT/SCHEME TO BE SUBMITTED

  1.  Title of project or scheme;
  2. Date of commencement;
  3. Duration and the likely date of completion;
  4. Estimated cost of the project;
  5. Category or class of persons who are likely to be benefited from the project or scheme;
  6. Affirmation that no benefit from the project or scheme other than remuneration or honorarium, will accrue to persons managing the affairs of the NGO Registration;
  7. Such other particulars as the applicant may place before the National Committee.

Documents required for FCRA Registration An application for registration of an organization for acceptance of foreign contribution shall be made electronically on-line in Form FC-3, and shall be followed by forwarding the hard copy of the on-line application duly signed by the Chief Functionary of the association together with the required documents:

i. Application in Form FC-3 in triplicate.
ii. Last 3 years Audited statement of accounts.
iii. Last 3 years Annual Report specifying activities.
iv. Copy of the registration certificate.
v. Copy of the MOA and/or the AOA as applicable.
vi. List of Main objects and definite programmes for which the contribution is to be accepted / utilized.
vii. Names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
viii. Copy of any prior permission granted to the organization.
ix. Resolution of Governing Body of the organization, authorizing the registration under FCRA.
x. Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
xi. List of present members of the Governing Body of the organization and the office bearers.
xii. Copy of any Journal or other publication of the organization.
xiii. In case, the association is already having any parent or sister or subsidiary organization which is registered under the FCRA then the registration number along with Ministry of Home Affairs file number should be mentioned.
xiv. If the association has submitted any application earlier then its reference number should be mentioned.
xv. If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
xvi. Details of Bank along through which the foreign contribution shall be received.
xvii. Certificate of Recommendation from any competent authority.
xviii. Copy of approval u/s 12 A and/ or 80G

Contact us for any help:

Registration under section 12A of Income Tax Act Once the Society is registered, we have to approach to Commissioner, Income Tax Department For 12A registration- This is for requesting tax department to recognize your NGO Registration as charitable organization and to avail tax exemption as per section 10, 11 of Income Tax Act. This is given by Commissioner.   Registration under section 80G of Income Tax Act Once 12A registration is granted, we have to approach to DGIT (Exemptions), Income Tax Department For 80G registration- This is for requesting tax department to recognize your NGO Registration  eligible for accepting public donation in lieu of issue of certificate u/s 80G by society which will enable them to claim deduction from tax u/s 80G.

Both applications can be applied together or it can also be applied separately also. If some organization is willing to apply both applications separately, then application for registration u/s 12A will applie first. Getting 12A registration is must for applying application for registration u/s 80G of Income Tax Act, 1961.   PROCEDURE FOR NGO REGISTRATION:- Step-1: Application needs to be filed with the exemption section of the Income Tax Department. Step-2: After 2-3 months, tax department will send questionnaire/notice for clarifications. Step-3: Suitable reply needs to be prepared and filed through authorized representative normally CA or lawyer. Step-4: Authorized representative will make periodical representation before tax official to follow-up the case on behalf of the applicant organization. Step-5: In case CIT is satisfied, He will issue Exemption Certificate u/s 12A and or 80G.   Documents required for NGO registration u/s 12A AND 80G:

  1. Application in form 10A for registration u/s 12A registration;
  2. Application in form 10G for registration u/s 80G registration;
  3. Copy of Registration Certificate and MOA /Trust Deed (two copies – self-attested by NGO head);
  4. NOC from Landlord
  5. Copy of PAN card of NGO;
  6. Electricity Bill / House Tax Receipt /Water Bill (photocopy);
  7. Evidence of welfare activities carried out & Progress Report since inception or last 3 years;
  8. Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3years;
  9. List of donors along with their address and PAN;
  10. List of governing body board of trustees members with their contact details;
  11. Deed for verification Original RC and MOA /Trust;
  12. Authority letter for NGO Registration.
  13. Any other document/ affidavit/undertaking information asked by the Income Tax department.