Across the world, people are concerned about the degrading living conditions of organisms. Whether it is animals, plants, or even humans, each of us faces unique challenges. The issue can be pollution, global warming, hunting, poaching, deforestation, human rights violations, and so on.
As citizens, we leave this problem to the government to solve. An NGO is a non-profit organization that works for the rights of humans, animals, and plants. Some of the major functions of these independent organizations include addressing political, environmental, and social issues.
GSI (Guide Star India) says there are 10,000 certified NGOs in India, while the Central Statistical Institute of India says there are 400 NGOs per capita.
Establishing an NGO is a great and appreciative initiative, but it needs some certifications and verifications to be validated as a legal organization. An NGO must follow these steps in order to get certified by the Indian government.
The Certification Process
Obtaining a DSC and DIN
The process begins with the application for a DSC ( Digital Signature Certificate ). After receiving the DIR-3 (Directory file), the NGO must apply to the Registrar of Companies (ROC).
This is followed by a request for a DIN (Director Identification Number). Once all the above requirements are met, RoC performs a final documentation verification, and then the directors receive their DINs.
The second step involves providing the organization with a legal name that can be used on formal documents. This requires approval from RoC for INC-1 (Incorporated-1) or RUN (Reserve Unique Name). There are two names to choose from, which are suggestions for names that are not occupied by any other company.
The RoC is responsible for approving the name of the organization, which depends on its availability.
INC 12 approval
When your organization has a legal name, you can apply for INC-12. The certification validates your status as a legal NGO in India.
Every participant should sign and verify an MOA (Memorandum of Agreement) and AOA (Article of Association) in the presence of at least one witness.
The Licence is issued
The RoC will issue an authorised licence with the declaration that your organization has been successfully registered as a non-profit under Section 8 as soon as the application has been carefully examined.
Company incorporation with SPICe form INC-32
Once an organisation is licensed, it must apply for SPICE (Simplified Proforma for Incorporating a Company Electronically) with RoC. There are some documents that must be submitted with the application, including:
- As per INC 9, an affidavit from every member of the NGO, including the director and subscribers
- Deposit Declaration
- The KYC (Know Your Customer) of directors
- Only directors are allowed to apply for Form DIR 2 along with proof of identity and residence.
- Two months’ old utility bills are not acceptable
- Landowner’s no objection certificate
- All directors have interests in other entities
- The MOA and the AOA
- The director’s consent letter
It may take some time for RoC to review the application. An Certificate for NGO is Incorporation and Corporate Identification Number (CIN) will be awarded once the RoC approves the application.
NGO Registration In India: Why Should You Do It?
To work without fear and to your full potential, you should always register. What are the benefits of getting a proper certification? Can’t an organization work as an NGO without any validation?
In accordance with the Companies Act 2013, NGOs are granted the privilege of not paying certain cesses. NGOs can use this fund for other operations, which is another great benefit of certification.
As a certified NGO, you can always keep your organization operational. There is no authorised deadline or anything like that. The company can continue operating even after the death of the founder/trustee, director, or other major personality. Taking down an NGO requires an order from the Court of India.
By getting an authorised certificate for your organization, you are also reserving the name of your business. Legally, no other company, organization, or startup can use your NGO’s name. Therefore, a reservation from the Indian government would allow exclusive use of the name. A petition can also be filed against the individual or group of individuals who attempt to use the name without your permission.
Help you with Finance
A certification may look like a piece of paper with some information written on it, but it is much more than that. A certificate confirms a company’s status as an authorized and verified entity, which is essential for securing finance from banks, government, money lenders, etc. These funds will allow the NGO to extend its operations and development.
No limit on share capital requirement
Non-profit organizations do not have share capital limits when they register as non-profits. NGOs are mostly funded by the charity they raise, so they don’t require a lot of money to function, helping those in need.
The process of obtaining a certificate for your NGO is quite simple. In order to register as a valid working institution, one simply needs certain approvals and licenses. RoC plays a crucial role since most documents and ID proofs are examined and checked by them; therefore, it is essential to have a clean background.
It might be a simple process, but it isn’t easy. IDs and applications must be filled out correctly. Applicants may have to visit many offices to obtain information about the application, since many offices are associated with the process.