Formation of the NGO as Company
An NGO can also be registered with the Registrar of
Companies as a non-profit organisation under section 25 of the Indian
Companies Act, 1956. Under this provisions name of the NGO is allowed
without the addition of suffix “Limited’ or “Private Limited”.
Section 25 of the said Act prohibits payment of any dividend to its
The following steps should be followed for the
proposed incorporation of the NGO:
First of all availability of the proposed name of the NGO should
On the finalisation of name, the Memorandum of Association and
Articles should be finalised.
c. Apply to the concerning registrar along with Memorandum of
Association and Articles, prescribed forms and their documents. Three
copies of the Memorandum and list of names addresses, description and
occupation of the promoters should be submitted for incorporation along
wit the list of companies, association and other institutions it which
promoters are directors or hold important positions; list of the members
of proposed Board of Directors in the proposed Board of Directors,
declaration in the prescribed form; triplicate copies of accounts,
balance sheet and reports on working of the association for last two
financial years and statement of assets and liabilities; sources of
income and estimates of annual income and expenditure; a note on works
already done by the association; reasons for incorporation; declaration
of the applicant; certified copy of notice published in news letter and
demand draft prescribed fee or its treasury challan.
A copy of the application along with all
enclosures and attachments should be directed to the Registrar of
companies of the state where the Registered office of the company will
be situated. After the draft of Memorandum and articles have been
cleared by Regional Director, the association should apply to the
registrar of companies in form No. 1 along with printed copies of
Memorandum and Articles. The Registrar then issues a certificate of
incorporation while charging a nominal fee.