How can I register an NGO in Kolkata, West Bengal? - Best Legal firm in Kolkata | Top Lawyers in Kolkata

How can I register an NGO in Kolkata, West Bengal?

Ngo Registration Process in Kolkata, West Bengal

NGO registration in Kolkata, West Bengal

West Bengal is the state with second largest number of MSMEs that accounts for more than 14% of Indiaโ€™a total count of MSMEs. The state of West Bengal is situated on the eastern part of the country surrounded by Bay of Bengal on one side and international border with Nepal, Bhutan and Bangladesh on other. On the interior side t share its border with Jharkhand, Odisha, Sikkim and Assam. The State has huge network of road and rail network covering more than 300,000 Kms with 16 national highways and 2 Asian Highways. Even the railways has 4000 kms of tracks along with second largest metro network in the India.

Forms of NGO Registration in Kolkata, West Bengal

As provided above, registering a NGO in Kolkata, West Bengal has multiple benefits to offer for the organization, who wishes to start a non-profit business of his/her own. Such individual can decide to opt for any one legal arrangement as provided below-

  • As a Company with non-profit motive i.e. a Section 8 company;
  • As a trust for public welfare under the Indian Trust Act 1882;
  • As a society under the Societies Registration Act, 1860
B Pramanik NGO Services
B Pramanik NGO Services

Benefits of NGO Registration in Kolkata, West Bengal-

  • Tax Benefits offered to NGOs

A NGO when registered as a Section 8 company under the provisions of the Companies Act in Kolkata, West Bengal , with non-profit motive is allowed several tax benefits in the form of tax exemptions, so that the NGOs in Kolkata, West Bengal have more capital to be incurred towards its goals and objectives.

  • No Minimum Requirement for Capital

To encourage the establishment and registration of NGOs in the society in Kolkata, West Bengal, the Government has relaxed the provisions regarding the minimum capital requirement for NGOs which is applicable in case of other legal entities, which means that anyone can start a NGO with any amount of capital.

  • Limited Liability

A NGO being a legal entity in Kolkata, West Bengal enjoys limited liability and has its separate existence apart from its members, which means that it can hold and sell properties in its own name and the profits and losses are of its own rather than its members.

  • Easier Transferability of Ownership Rights

A NGO where registered as a section 8 company as per the provisions of the Companies Act 2013, has been relaxed from the requirement of putting any restriction in the transferability of its ownership rights, which ensures easier liquidity to members when in need of funds.

  • Stamp Duty Exemptions

Further, when a NGO is registered as a Section 8 company i.e. with a non-profit motive, they are exempted from the payment of stamp โ€“duty helping them to save funds for charitable objectives or availability of more funds for the daily functioning of the company.

  • Perpetual Succession

Being a legal entity, a NGO can enjoy other benefits of a legal entity such as perpetual succession which means that its members may come and go, but it will remain in existence until and unless it is finally dissolved under the provisions of law.

 

Process of Registration of NGO in Kolkata, West Bengal

As provided above, a NGO could be registered in any manner or arrangement out of the following and in the manner provided below-

  • Registration as a Society

A society is a body corporate that is found and registered primarily for the promotion or advancement of any religious, scientific or any charitable objective by association of any seven or more persons for any non-profit motive. Such society is required to be registered as per the provisions of the Society Registration Act 1860 and is required to comply with the rules and regulations accordingly.

To register a NGO as a society in Kolkata, West Bengal, the applicant must follow the steps provided below-

Step 1- Choose a desirable name for the society that should not be-

  • Identical or resemble too nearly the name of any existing society that is registered under the Society Act;
  • Indicate any patronage or direct relationship with any State Government or the Central Government of Kolkata, West Bengal;
  • Any name prohibited or restricted to be applied as the name of a legal entity as per the provisions of the Emblem and Names Act, 1950.

Step 2- Collection of Documents and submission for registration in Kolkata, West Bengal-

Next, the proposed applicant society shall be required to collect all necessary documents and drafting of memorandum & articles of association defining its goals and objectives along with the applicable rules and regulations which the society shall always abide by till the time of its dissolution. Once all documents have been prepared and collected, they must be submitted for registration proposes to the Registrar of Societies within the jurisdiction of the area where the society is proposed to be located along with the applicable fee.

Step 3- Verification & Grant of Registration for NGO in Kolkata, West Bengal

Where the Registrar of Societies will go through the application and attached documents and on being satisfied that all the requirements have been fulfilled, he may issue the Certificate of Registration of Society with a unique NGO Registration number.

  • Registration as a Trust

As per the provisions of the IndianTrust Act, a trust is an obligation placed by the owner of the property on a third person for the benefit or his welfare or for the welfare of the beneficiary and such obligations are declared or expressed by such owner in a legal instrument known as trust deed. While a trust may be private or public in nature, it is generally a public trust that is in the form a NGO for any charitable, social or for religious motive.

If the proposed NGO wishes to be registered as a trust, the steps mentioned below shall be completed-

  • Collection & Preparation of Documents

Any individual who wishes to start a โ€œpublic trustโ€ is known as author of trust and shall be required to make an application and later submit the application along with necessary documents and fee to the registering authority where the office is intended to be located in Kolkata, West Bengal.

Such application must include-

  • Proposed name of the NGO;
  • Name/s of the Author of the trust and the proposed mode of succession;
  • Copy of drafted trust deed containing the intention of such settlor for the creation of a public trust and defining its objective.
  • Trust Registration and Stamp duty fee as applicable depending upon the State where the trust is proposed to be located.
  • Submission of Application & Grant of Registration in Kolkata, West Bengal

On receipt of the application, the registering authority shall go through the application and the documents. On being satisfied that all the requirements have been complied with, he may grant registration of trust and will issue a registration certificate bearing a unique registration number which will be required to be preserved in good manner by the trustee.

  • Registration as a Non-Profit Company in Kolkata, West Bengal

A NGO could be registered as a Section 8 Company or commonly known as a Non-Profit organization as per the provisions of the Companies Act 2013.Such companies are incorporated in a manner similar to a public or private company, except the fact that they primarily work for social welfare objectives such as promotion of education, arts, science, research or any similar one, rather than for the purpose of generation of profits.

Such Non-Profit organizations in Kolkata, West Bengal are not allowed to distribute profits or incomes with its members in form of dividends or in any other manner, and the same shall be reinvested in the NPO in the furtherance of its objectives.

If the applicant wishes to register its NGO as a Section 8 company, he shall be required to follow the below-mentioned steps-

Step 1- Create a user id and password on the MCA portal

As a first step towards the process of registration, the applicant shall provide his basic details such as registered email address and mobile number for creation of user id and password and log on to the portal provided by the Ministry of Corporate Affairs (MCA) for registration purposes.

Step 2- Filling online form along with necessary attachments

The MCA has introduced a new integrated form that serves for incorporation as well as other necessary permissions and licenses required by a newly proposed company such as โ€“

  • Application for Digital Signature Certificate for affixing signatures of the authorised signatory of the proposed company;
  • Application for Reservation of Unique name (RUN facility) providing at least two proposed names
  • Application for PAN & TAN identity of the company;
  • Application for PF & ESI registration for employees and
  • Application for GST registration
  • Opening a current Bank Account opening for business transaction purposes.

Therefore, in the next step the applicant shall be required to fill SPICe+ form which is available in Part A and Part B along with all required information and attachments. The name of the proposed NPO shall include words like Forum, Federation, and Association, Snagathan etc. along with such name, to suggest its non-profit motive and submit the application online along with registration fees.

Step 3: Verification of the Form and Grant of Certificate

The application shall be submitted to the applicable Registrar of Companies, who shall go through the application along with other attachments and on being satisfied that all the requirements with respect to incorporation of the company have been complied with, may issue a Certificate of Incorporation.

  • Documents Required for NGO registration in Kolkata, West Bengal

For Society Registration

  • Proposed Name of the Society
  • Address of the premises where the Society is proposed to be situated
  • Proof of identication of the proposed members
  • Copy of objectives and Bye-laws of the proposed society in duplicate.

For Trust Registration

  • Intention of the Author of Trust as provided in Trust Deed;
  • Particulars of the author of trust along with other trustees;
  • Trust Deed on Proper Stamp Value.
  • PAN Card of Trustee and settlor.
  • Address proof of the place from where the trust is proposed be located;

For Incorporation as a Company

  • Copy of proof of identification of the proposed initial subscribers and directors of the company.
  • Scanned copy of utility bills of the place where business is proposed to be located
  • NOC from the owner where the business premises are rented or leased;
  • Copy of duly drafted MOA and AOA;

Conclusion

Therefore, NGOs are a crucial part of the society who make their contribution in the social, educational and moral welfare of the society. They not only help the Government in better implementation of the welfare schemes, but also do help to fill the gaps justify in the execution of Government policies and schemes. However, before undertaking the process of registration, it is important to understand each types of NGO registration in Kolkata, West Bengal and choose the same depending upon the size of the organization, orientation type and other factors carefully with the help of a professional having credibility and years of experience in undertaking NGO registration and start your journey today!

 

 

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