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Registering an NGO under Companies Act

A charitable institution/association can be registered as a non-profit company and obtain a licence u/s 25 of the Companies Act. For obtaining a licence, the association has to first apply for availability of name to the Registrar of Companies of the State in which it wants to get itself registered. The application should be made in Form 1-A and the guidelines issued in this regard should be followed. As soon as the letter of approval of name is received from the Registrar, proceed for incorporation, as follows :

The institution/associations should apply to Regional Director, Registrar of Companies of the region by a letter along with following documents.

  1. Three typewritten copies of draft Memorandum and Articles of Association of the proposed company. No stamp duty is payable.

  2. List of names, addresses, description and occupation of the promoters in triplicate.

  3. List of companies, associations and other institutions in which promoters are directors or hold responsible positions, with description of positions held.

  4. List of members of the proposed board of Directors.

  5. Declaration in the prescribed form by an Advocate, Attorney, Pleader, Chartered Accountant or a whole time practising Company Secretary, on a non-judicial stamp paper of appropriate value.

  6. Copies of accounts, balance sheet and reports on working of association for last two financial years ( for one year only if the association has functioned for less than two years), in triplicate.

  7. Statement of assets and liabilities.

  8. Sources of income and estimate of annual income and expenditure.

  9. A note on work already done and proposed to be done by the association.

  10. Grounds in brief for making application u/s. 25.

  11. Declaration signed by each of the applicant.

  12. Certified copy of notice published in newspaper .

  13. A draft or paid treasury challan for requisite fees for registration.

A copy of the application with all enclosures and accompanying papers should be sent to the Registrar of Companies of the State where the association proposes to situate its Registered Office.

After the draft Memorandum and Articles have been approved by the Regional Director, the association should apply to the Registrar of Companies, for its registration as a company, in Form No.1 along with printed copies of Memorandum and Articles and other documents necessary for registration along with a registration fee of Rs. 500/-. The Registrar then issues a certificate of incorporation.

Special thanks to: Karmayog

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