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The NGOs Or Nonprofits: Their Role, Growing Importance & Types
Registration & Licenses

The NGOs Or Nonprofits: Their Role, Growing Importance & Types

What Is An NGO?

A Non-Governmental Organisation (abbreviated as NGO) is an organization that aims to promote the benefit and the welfare of society especially of the underprivileged section of society. Well, as is implied in its name does not work under the control or the influence of any government. An NGO works without any pecuniary aid from the government. At the same time, an NGO functions in close coordination with the government agencies for executing their projects.  

Thus, NGOs are really important in India as they serve the major purpose of development and growth. Well, it can be said that an NGO is a non-profit organization, run by a group of activists in society. Those who run an NGO are voluntary individuals, they are social persons working for a charitable cause.

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The Importance Of NGOs:

They have an important role in helping the women who are facing the problems of male domination and unjust treatment owing to patriarchal social structures.

NGOs also fight for the rights of children. Besides, they safeguard children from sexual abuse, harassment, torture, and abandonment. Also, NGOs operate in the real world to fight the problems like child labor

Also, try their level best to save old people from exclusion & destitution. Moreover, NGOs build special homes for the old and the aged and collect monetary resources to improve their lives.

NGOs act to give better lives to widowed and unemployed women. Also, they help develop handicraft and artisan prospects to help poor women in rural areas and other backward regions.

Besides, non-governmental organizations rescue in a big way the victims of natural calamities. They set up funds, rehabilitation centers, clinic services, and other types of services to help the sufferers.

NGOs serve to create a more equal social order. They tend to fight the inequality inherent in humankind and their surroundings due to various social and societal reasons. They tend to establish a better and a more harmonious human order.  

Some general characteristics of NGOs are:

They are formed voluntarily when several right-thinking people come together;

They are free from any government influences;

They do not vouch for private profit or gain; and.

Their chief purpose is to improve and upgrade the situations, circumstances and the prospects of disadvantaged people.

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The Major Types of NGOs

Here are the pivotal categories of NGOs, these are as under:

Agriculture Nonprofit Organizations – These NGOs aim to help in the field of agriculture. They help poor farmers with the funds & resources and try to make agriculture a more level-playing field.  

Women Nonprofit Organizations – These NGOs help women fight discrimination and inequality being meted out to them by a patriarchal and male-dominated order.

Social Justice Nonprofit organizations – They work for better lives to poor people. They try to address the excesses of inequality and the consequences of exploitation that come up due to a hard social order.  

Eco-Friendly Nonprofit Organizations - They are environmental non-governmental organizations (ENGO). They work hard to safeguard nature and protect the threatened & endangered species of the ecosystem. Two distinguished examples are Greenpeace and the World Wide Fund for Nature.

MANGO - This category of NGO gives market advocacy in the business world to facilitate the growth & development of small organizations.

TANGO -These non-governmental organizations cover the various prospects related to technical assistance.

INGO - On an international scale, these global NGOs restrict the problems obstructing humanity’s growth & prosperity.

How To Start An NGO In India – Process & Procedure

Starting an NGO is not a very difficult task in India. After an NGO is set up, we have to strive hard to create a better society without the expectation of any profit. Running an NGO in India is quite similar to running a company, but one should be transparent.

Steps to easily start an NGO in India:

Step 1: Determine the cause and mission of your NGO

Step 2: Create the board of directors/members

Step 3: Determine the name of your NGO

Step 4: Memorandum Articles of incorporation and Association

Step 5: Register your NGO

Step 6: Begin collecting funds

Step 7: Create a wide network

Registration for NGO:

When the documents are ready, and after depositing the fee, you can get your NGO registered under any of the following Acts-

Societies Registration Act (In society, at least seven members are needed to be the members)

Indian Trusts Act (In charitable trust at the minimum two people are required, no limit of maximum members)

Companies Act (A non-profit company can be registered under section 8 of the Companies Act along with the registrar of companies.)

The Cost Of Setting Up An NGO

The cost of registering an NGO in Mumbai is estimated at around Rs. 10,000/- this cost involves Stamp papers, drafting, Advocate fees, and notary charges and memorandum. This cost varies from state to state and city to city.  The cost of setting up an NGO in Mumbai is on the higher side of this variation range across India.

Some Popular NGOs in India

  • Goonj
  • Childline India
  • Smile Foundation
  • Nanhi Kali
  • Helpage India
  • Give India Foundation’
  • Sammaan Foundation
  • Kiss Foundation
  • Pratham
  • CRY

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Know more about MSME Registration in India
Registration & Licenses

Know more about MSME Registration in India

Every enterprise which falls under the definition of Micro, Small and Medium Enterprise must get itself registered under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 because there are a lot of benefits and government programs that accrue due to an enterprise being in this definition.

Few of which are-

  • Loans at Lower rates
  • Subsidies
  • Various beneficial schemes for this sector

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What are Micro, Small and Medium Enterprise?

The Micro, Small and Medium enterprise in India are defined under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the criteria of classification is the investment in plant machinery/equipment and annual turnover.

Enterprises engaged in the manufacture or production, processing or preservation of goods are classified as micro small and medium as follows-

    • A micro enterprise is an enterprise with investment less than INR 1 crore and annual turnover less than INR 5 crores.
    • A small enterprise is an enterprise with investment ranging between INR 1-10 crores annual turnover ranging between INR 5 to 50 crores.
    • A medium enterprise is an enterprise with investment more than INR 10 crores but is less than INR 50 crores and annual turnover in the range of INR 50-250 crores.

In the case of MSMEs, the investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries.

The Enterprises could be manufacturing or rendering services.

The criteria for being defined as Micro small and medium enterprises are as tabulated below-




Investment (plant and Machinery): <1 crore

Annual turnover: <5crore

Investment (plant and Machinery): <10 crore

Annual turnover: <50 crore

Investment (plant and Machinery): < 50 crore

Annual turnover: < 250crore

Also, read Recent Budgets And The Growing Importance Of MSMEs

Previous and Latest MSME Classification

The Previous and latest MSME Classification is essentially different in the sense that previously there were different investment brackets for Manufacturing and Services sector and the investment limits were less, the previous classification only talked about investment (Plant and Machinery) but the new classification talks about investment (Plant and Machinery) and annual turnover both, having separate monetary brackets. With the advent of time the older monetary limits and the sectoral classification of MSME were felt obsolete by the government and were modified by the government in 2020.






Investment (plant and Machinery): <1 crore

Annual turnover: <5crore

Investment (plant and Machinery): <10 crore

Annual turnover: <50 crore

Investment (plant and Machinery): < 50 crore

Annual turnover: < 250 crore



Investment (plant and Machinery): < 25 Lakh


Investment (plant and Machinery): < 10 Lakh



Investment (plant and Machinery): < 5 crore


Investment (plant and Machinery): < 2 crore


Investment (plant and Machinery): < 10 crore


Investment (plant and Machinery): < 5crore




The registration process for MSME can also be done completely online as specified under the MSME Act, through the UDYAM registration portal.

The Process is completely online and registration certificate is received within days, the biggest positive of UDYAM registration is that the validity of registration is unlimited provided that it is not cancelled.

  1. Filling of application process- The application form can be filled either online or offline which has all the necessary business details like the registration number, company name etc.
  2. Registration can be filed for more than one industry of MSME.
  3. Fill the Details like PAN card Number, Aadhar Card number, GSTIN(Goods and Services Tax Identification Number)[1] , etc.
  4. No registration fee is required.
  5. Individuals can also submit self-attested certificates.
  6. Once all the details are filled properly and the documents are submitted business owners will receive a registration number for their businesses.'

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Documents Required

  1. Proof of Address.
  2. Proof of Income.
  3. In case of Rented Ownership, a No Objection Certificate(NOC) is required from the landlord, rent receipt, utility bill or an equivalent is also required as a proof of landlord’s ownership.
  4. In case of a self-owned office an allotment letter, possession letter, property tax receipt, lease deed is required or a municipal license against the business’ name will suffice.
  5. Receipt or copy of receipt of every sale and purchase.
  6. Bills of Machinery purchased and Important license copies.
  7. Articles of association(AOA) and Memorandum of Association(MOA) and partnership deed in case of a partnership and board resolution copy and certificate of incorporation are required.

[1] GSTIN is not necessary for the enterprises not mandated under the GST law to obtain it, those enterprises can get themselves registered without having the GSTIN. However, the enterprises mandated under the GST law must fill GSTIN while filling the form.

Procedure, Document Checklist And Costs For LLP Registration
Registration & Licenses

Procedure, Document Checklist And Costs For LLP Registration

Registration Procedure

  1. Obtaining Digital Signature Certificate for the Proposed Partners- Before you start the registration process, you need to apply for a digital signature of the designated partner of the proposed LLP. This is because all LLP documents are submitted online and require a digital signature. Therefore, the designated partner must obtain a digitally signed certificate from a government-approved certification body.
  2. Obtaining Director Identification Number for the proposed Partners- You must apply for the DIN of all designated partners or partners who will become designated partners of the proposed LLP. Applying for DIN has to be done on Form DIR-3.
  3. Name Approval from Ministry of Corporate Affairs(MCA)- LLP-RUN (Limited Liability Partnership-Reserve Unique Name) shall be submitted to reserve the name of the proposed LLP and shall be processed by the Central Registration Center under non-STP. However, we recommend that you use the free name search feature of the MCA portal before quoting your name in the form.
  4. Filing Incorporation- The form used for registration is the FiLLiP (Limited Liability Partnership Registration Form), which should be submitted to the registrar that has jurisdiction over the state where the LLP's registered office is located. The form will be a comprehensive form.
  5. Filing Limited Liability Partnership Agreement- (within 30 days from the date of incorporation of the LLP)- LLP agreements provide for mutual rights and obligations between LLPs and their partners. The LLP agreement must be submitted online in Form 3 on the MCA portal.

Processing Time- 20 days (Approx.)

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Document checklist

Mandatory Documents for Indian nationals

  1. PAN Card: The LLP registration process requires a copy of the LLP's proposed partner's PAN card. It is issued by the Income Tax Office of India and is a unique identification number, PAN or taxpayer number.
  2. Proof of address- Proposed partners must submit proof of address and proof of residence in addition to a copy of the PAN card. The submitted proof of address must contain the partner's name and current address as mentioned on the PAN card. The following documents serve as proof of address -
  • Passport
  • Election Card or Voter Identity Card
  • Ration Card
  • Driving License
  • Electricity Bill
  • Telephone Bill
  • Aadhaar Card
  1. Residential Proof- The residential proof is used to validate the current address of partner. Documents admissible as proof of residence for Indian national-
  • Bank Statement
  • Electricity Bill
  • Telephone Bill
  • Mobile Bill

Mandatory Documents for foreign nationals

Passport- For foreign nationals, the passport must be submitted as proof of identity. Passports must also be notarized in the country of issuance. If the document is in a foreign language, it is then translated by an official translator in English and notarized. In addition, if the passport does not have the holder's date of birth, additional documents indicating the partner's date of birth must be provided, duly certified or notarized.

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Address Proof- The foreign national must provide notarized proof of address. The name of the Partner as it appears in the passport, as well as the Partner's most recent address, must be included in the address proof. For foreign nationals, the document must also be less than one year old. The documents listed below are acceptable proof of address for a foreign country.

  • Driving License
  • Residence Card
  • Bank Statement
  • A government-issued form of identification containing the address.

Residential Proof: In addition to the address proof, a residential proof must be submitted throughout the LLP registration procedure to verify the Partner's present address. The residential proof, like the address proof, must include the name of the Partner as it appears in the passport and must be no more than one year old. Residential proof includes the following documents:

  • Bank Statement
  • Electricity Bill
  • Telephone Bill
  • Mobile Bill

Documents of LLP

Proof of Registered office

In addition to providing proof of identification, address, and residence address for the Partners, proof of the LLP's registered office address must be submitted. During the company registration procedure or within 30 days of incorporation, submit the following documents as proof of registered office.

  • The Landlord's permission to use the premises as the company's registered office (as stated on the Electricity Bill, Gas Bill, Water Bill, Property Tax Receipt, or Sale Deed). This is commonly referred to as a Landlord's NOC.
  • Proof of any utility service, such as telephone, gas, or electricity, that shows the address of the property in the owner's name or a document that is not older than two years.

Digital Signature Certificate: A digital signature certificate needs to be obtained by any one of the designated partners.

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Cost of Registration

Stepwise costs of the abovementioned process are given as follows-



Step 1

For two partners, it costs around Rs. 1500-2000. (varies depending on the agency)


Rs. 1000 for 2 partners.



Rs 200.

Step 4

Depends on capital contribution.


Step 5

Relies on the amount of money invested. Contribution up to Rs 1 lakh – Rs 50 for filing Form 3 and stamp duty, which varies depending on the state where the LLP is incorporated.

Please note that the costs given above are estimations and not the exact costs that may be charged.

LLP Registration is important and needs to be done right in order to avoid any potential hassles or legal disputes.


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