What is a Non-governmental Organisation (NGO)?

Hey Corpseed readers, today we are going to tell you everything about how you can start your NGO and what things you will require to start it. NGOs are Non-governmental organizations and we can understand by their name that these are organization that doesn’t work under the government.  This type of organization plays a really important role in the social sector of India.

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These organizations work for the development of the weaker section of the society and that helps to give a boost to the weaker sector economy of the country. We can say that an NGO used to do such tasks which have to perform by a welfare state. In our country, These Non-governmental organizations are also known as charity organizations because they are dependent on donation funds. These donation funds are donated by the wealthy and richer sections of society. Conclusively we can say that NGO is a legal organization that is formed by a group of people and that organization works for the welfare of society without any influence of the government. 

Non-governmental organizations work for a long period of time but people can also start a non-profit charity for the same cause. Non-governmental organizations are also mentioned in the UN charter Chapter 10, Article 71. World Bank has divided the NGOs into two parts:

• Operational NGOs:- Operational NGO is a type of NGO where a group of people works for a common goal and solves a social issue which helps to develop the weaker section of the society. These types of NGOs are also known as Relief and development-oriented organizations. 
• Advocacy NGOs:- Advocacy NGO is a type of NGO where the organization works for the awareness activities such as lobbying, Press Work, and activist events. These types of NGOs are a good source of knowledge and information for those people who are not aware of their surroundings and are illiterate also.      

But, many Non-governmental organizations are a combination of both operational and advocacy. Every NGO has the main focus on any issue such as Disaster assistance, Women’s rights, economic growth Etc. Now we will go to learn how you can start your own NGO. 

Initial procedure to start a Non-governmental organization:  

Here is a list of Initial steps to start an NGO in India:

Step 1: Primarily, you need to decide what issue you are willing to solve through your NGO. You need to find vision behind your NGO. 

Step 2: Initially, Every NGO must have a promoter body and that would be the first governing body of the NGO at the time of the registration, That body would be responsible for Every decision of the NGO and they would conduct the activities by the NGO. That governing body has to make some order of rules and regulations if required. The governing body of the NGO would be part of all the activities, strategies, planning, Hiring of new people, networking, and financial management as well. 

Step 3: Every NGO needs some legal documents if they want to work legally in India. These documents are:

• Trust Deed
• MOA (memorandum of Association)
• List of rules and regulations with the name and address of the NGO.
• Mission and Objectives
• Governance details of the NGO

Step 4: Any group can register their NGO Under some specific acts of the constitution. These Acts are mentioned below:

• Registration as Public Charitable Trust: - NGOs can register themselves in specific acts but there is no single Act for a national-level public charitable trust. There is an Indian Trust act 1882 which have the provision for Private trust and these private trusts work for profit organization. 
• Act for society’s registration 1860:- Any group can start a society with seven and more people. It is very simple to start a Non-profitable society but it takes more time for registration than a trust takes but the rules and regulations are flexible for the society. 
• Registration in Company act 2013:- In case someone has an organization for Art, Science, commerce, religious, or charity promotion then they can register themselves as a Non-profit organization but in this case, Members of the company cannot get money or share from the company. In case, the company Earns some profit or any amount then they have to use it to utilize for the further objectives of the organization.        

Step 5: NGO members have to raise the funds with the help of internal sources such as membership fees, sales, donations, subscription charges,s, and other sources. They can also get aid from the government, private and foreign organizations Etc. If NGOs get funds from any foreign sources then they have to follow the guidelines of (FCRA) Foreign Contribution Regulations Act 2010.

Step 6: Every organization that we have mentioned above can be registered in Income Tax Act 1961 under section 12A so that NGO will get tax Exemption on Every tax liability of the income of the NGO. Every Non-governmental organization can register itself in section 80G of the Income tax act. Every NGO can get up to 50% of tax exemption from paying tax on the Donation money. Only certain organizations can get this tax exemption. 

Step 7: If an NGO fulfills the above-mentioned requirements, then they have to build a professional network with Government agencies, Media, the Corporate sector, and other NGOs as well. This network and partnership with other organizations will give strength to your NGO. 

What are the documents required for NGO registration 

Here is a list of required documents for the registration of an NGO:

• Applicant must have a legitimate PAN Card or Passport (Foreign Nationals & NRIs) for the NGO registration. 
• Applicant must have a Copy of Aadhar Card as identity proof. 
• Applicant’s Passport-sized Photograph would be required for the registration. 
• Applicant needs to show the Latest bank statement (2 months)/ telephone or mobile bill/ electricity or gas bill to complete the registration. 
• Applicant needs to show the Electricity Bill to validate the Registered Office address. 

What is the Procedure for NGO registration?

Here is a step-by-step procedure for the registration of an NGO: 

• Make the Digital Signatures of the Directors/Members:- Primarily NGO directors and members have to create their digital signatures. These digital signatures would use to sign all the documents when we incorporate the NGO under section 8. 
• Application filing for the Director’s Identification Number:- Once the directors and members of the NGO received their Digital signatures. Then we need to file an application for the DIN (director’s Identification Number). This number is allotted by the Ministry of Corporate affairs in a form of a unique number. This number is allotted to all the directors of the organization. This DIN number is allotted under Section 8 Company.  
• Choose a unique name for the organization (NGO):- Once we finish the process for the digital signatures, you need to find a unique name for your section 8 organization/NGO. This process will not take more than a day to finish. 
• Arrange the forms and documents:- Once you get the approval for your NGO name, We need to prepare all the e-forms and such documents so that we can be done the drafting of the MOA and AOA with that. 
• E-form filing in the Ministry of corporate affairs (MCA):- After arranging all the forms and documents, we would upload them on the MCA website with the attachments of MOA and AOA for approval. 
• You will get the COI, PAN, and TAN for the NGO:- Once you get the approval from MCA, Ministry will allot you COI, PAN and TAN for your NGO which Shows that your NGO is registered successfully. 

Conclusion

In this article, we talked about how you can start your NGO and how you can register it. This article talks about the different aspects of starting an NGO. We talked about the complete registration process of an NGO. If you want your NGO to get registered then you can visit our website Corpseed. We shall be glad to help you. Thank you for reading this blog, goodbye.