Non Governmental Organization (NGO) / Non For Profit Organization

As the name suggests, these entities work towards the wellbeing of the society and bridges the gaps at places where Government can’t reach effectively due to many factors. Such organizations are known as non - profit organizations or non- government organizations (NGO).

NGO is non- profit organization of community, citizens, person for social service. NGO are registered under Government authorities but are managed and operated by its members on the policies governed by Government.

REQUIREMENTS OF NGO REGISTRATION

1. ID proof (Aadhar card, Voter ID, Driving License or any Government ID card) of the members is required for registration

2. Passport Size photograph is required
3. Proof of address of office where NGO is registered
4. Memorandum or article of association or trust deed is required for registration of NGO
5. Rules, Regulations, aims, objective of formation of NGO should be clearly defined in its Memorandum/articles/ trust deed

HOW TO PROCESS FOR NGO REGISTRATION?

NGO registration depends on the kind of NGO registration because it has 3 legal forms in India:

1. TRUSTS

NGO in form of trusts are governed under Indian Trusts Act. It is the simplest process which takes around 2 days to 1 week for formation.

Below are the requirements for registration of Trusts:

1. Minimum of 2 trustees and no limit in maximum.
2. No requirement of name approval but the name restricted under the Emblem Act can be disapproved

iii. Trust deed will be registered in the Sub-Registrar office of your area

1. Board of trustees and executive committee is the governing structure for trusts
2. Execution of trust deed is mandatory giving it a legal status and defining the aims, modes of management
3. SOCIETIES

Trust Registration in the form of Society is governed under Societies Registration Act, 1860 having a separate legal entity. It takes around 1-2 months to form a Society.

Below are the requirements for registration of Society:

1. Minimum 7 members are required to form Society. However, is it is registered at National level minimum 8 members are required
2. It will be registered in the Registrar or Deputy Reg of Societies of concerned state

iii. General Body and executive committee is the governing structure of Societies

3. NON PROFIT COMPANIES (SECTION 8 COMPANY)

These organizations are registered under of Companies Act 2013 as Section-8 Companies. The main objective of the Company is to promote art, commerce, sports, safety, science, research, healthcare, social welfare, religion, protection of the environment, etc.

Procedure for incorporation is same as in case of a private or public company. The only difference is that a license is to be obtained from the office of Regional Director to form a company under section 8 of the companies Act 2013

Below are the requirements for registration of Section 8 Company:

1. It needs minimum of 2-3 Directors in case of private and public company respectively.
2. Name approval is mandatory before registration from ROC

iii. General Body of Directors and BOD is the governing structure for section 8 Company

1. Stamp duty payment if not required for registration
2. DIN and DSC of directors is required for registration of Section 8 company

Source url - https://enterslice1.wordpress.com/2018/10/31/non-governmental-organization-ngo-non-for-profit-organization

Section 8 Company Registration A Practical Approach

In India if you wish to register a Non- profit Organization it can be done in three forms;

• Trust
• Society and
• Section 8 Company

In India Section 8 Company is the most preferred business structure for NGO registration. In this article we will discuss about what a Section 8 Company is and how can it be registered.

Basic attributes of a Section 8 Company Registration

If you are planning to set up a non-profit organization via Section 8 Company Registration following attributes must be known before initiating Section 8 Company registration;

• Minimum two directors and two shareholders are required for Section 8 Company registration.
• Section 8 company registration cannot be done as an OPC. It can only be registered as either as a private company or a public company.
• Section 8 company registrations cannot be done with profit making objective as it operates with charitable objects.
• Proposed name for Section 8 Company registration must not be undesirable or shall not be offensive to any group of people.
• Words like Association, Foundation, forum, Council, forum etc. must for part of the proposed name for Section 8 Company registration.
• The name must reflect the activity to be undertaken after Section 8 Company registration.
• Section 8 Company registration must be done with an objective of promotion and furtherance of medical facilities, education, art, culture, sports, commerce etc.
• In order to proceed with Section 8 Company registration after name approval applicant is required to acquire License from Central Government.
• Any profit cannot be distributed among the members as dividends.
• All the profits made are invested back in the organization for furtherance of its main objects.

What is Section 8 Company Registration Procedure?

STEP 1: Digital Signature Application submission

As all the forms are required to be verified and signed by the applicants thus they are required to apply for Digital Signature Certificate. All the subscriber of shares and proposed directors are required to apply for DSC and submit all the required documents along with passport size photograph of the applicant.

STEP 2: Apply for Name Reservation

The applicant shall finalize on a name for the proposed non profit organization and file for name reservation. Name reservation application is submitted via RUN service available on the Ministry of Corporate Affairs portal. Full form of RUN is Reserve Unique Name. Maximum two names can be applied for through RUN service. This application is processed within 2-3 days’ time. Once a name is approved by the authorities it will be reserved for 20 days within which time the Section 8 Company registration is required to be completed.

STEP 3: Prepare Incorporation Documents

After name approval is done prepare all the necessary documents required for Section 8 company registration. These documents include;

• MOA
• AOA
• Statement of Assets and Liabilities
• Estimated profits and loss statement for 3 years
• List of directors
• Dir-2 of all directors
• Inc- 9 of all subscribers and directors
• Declaration from professional etc.

STEP 4: Apply for License

In order to complete Section 8 company registration the applicant is required to obtain license from Central Government. Application for this license is to be filed in Form INC-12 and AOA, MOA etc. are to be submitted as attachments.

STEP 5: Submit SPICe Form

Once the License is issued in Form INC 16 to the applicant the only step left in Section 8 Company Registration is to file the Incorporation application through SPICe Form. Along with basic attachments copy of license issued shall also be attached in the section 8 company registration application.

Once the application is verified and the authorities are satisfied certificate of incorporation is issued.

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MSME an added advantage to your Enterprise

Introduction:

Once a company gets itself registered as MSME (Micro small medium enterprises), it becomes eligible for various benefits available under various schemes of the government. Although the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME. The MSME is regulated by the MSMED Act, 2006. The various schemes, exemptions, grants issued time to time is provided to encourage and enhance more participation of such enterprises, in return, even the enterprises are contributing in the growth of the economy by way of exports to foreign territories, exchange of technologies at international level and also has resulted in enhanced employment opportunities.

BRIEF: Official Site for MSME registration: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx. Industries sectors eligible to be registered: Enterprises engaged in manufacturing of Products and Services. Types of MSME: 1.      Micro Enterprises 2.      Small Enterprises 3.      Medium Enterprises The basis of division into MSME: It is categorized on the basis of investment in Asset. However, it is proposed to be categories on the basis of turnover.

Categories of MSME:

Product based:

All such manufacturers who are engaged in the process of manufacturing, production, processing or preservation of goods are required to register themselves according to the given below categories:

1. MICROENTERPRISE:

Industries having an Investment in plant and machinery of up to 25 lakh

2. SMALL ENTERPRISE:

Industries having an Investment in plant and machinery of more than 25 lakh but up to 5 crores

3. MEDIUM ENTERPRISE:

Industries having an Investment in plant and machinery of more than 5 crores but up to 10 crores

Service-based:

All such organization which is engaged in rendering services and are related to the service sector are required to register themselves according to the given below categories:

1. MICROENTERPRISE- Organizations having an investment in equipment up to 10 lakh
2. SMALL ENTERPRISE- Organizations having an investment in equipment more than 10 lakh but up to 2 crores
3. MEDIUM ENTERPRISE- Organizations having an investment in equipment more than 2 crores but up to 5 crores

Documents required for registration:

1. Established Business address proof:

In the case of the self-owned premises following can be submitted:

1. Allotment letter,
2. Possession letter,
3. Lease deed or property tax receipt.
4. In the case when the municipal license is available in the business name or in the name of the proprietor, partner or director of the business, no other possession document is required to be submitted.
5. In case the premise is rented following is required:
6. A no objection certificate from the landlord is required.
7. Rent receipt
8. Any utility bill or document evidencing the landlord’s ownership is to be submitted
9. Copies of sale bill in which it is going to deal in and sell or supply.
10. Copies of Purchase bill of such raw materials purchased.
11. Licenses from regulatory bodies as obtained.
12. All bills and receipts related to purchase and installation of plant and machinery if stipulated. 

Registration Steps:

Step 1: Application on MSME registration is required to be done online.

Step 2: The verification of same is to be done using the e-Aadhar OTP.

Step 3: Provisional registration is granted for the initial years of 5 years, in cases where the entity has not yet started its business.

Step 4: On commencement of operations, the company can apply for the permanent license, until and unless the previous one has been canceled.

Benefit:

The benefit of such provisional registration is that the basis these companies can approach the bank and apply for loans and certain NOCS can be obtained basis this provisional registration number obtained.

Just to know:

To facilitate the ease of business it is PROPOSED to divide the industries on the basis of annual sales turnover rather than on an investment basis and hence there will be no distinction between manufacturing and service unit.

Proposed limits are:

Sr. No.	Types	Turnover
1.	Micro Enterprise	Turnover upto 5 crores
2.	Small Enterprise	Turnover upto 75 crores
3.	Medium Enterprise	Turnover upto 250 crores

In the recent era, the MSME sector took a boom and kept growing consistently and in response to that to promote it government regularly announces various schemes. Hence it is highly recommended to get your enterprise registered under MSME.

Source url https://enterslice1.wordpress.com/2018/10/06/msme-an-added-advantage-to-your-enterprise

Business Plan: Summary of future plans of an Enterprise

It is said that a good idea only when nicely planed turns out to be good venture and a good idea if not nicely planned may turn out into a disaster. In order to start a business, certain pre planning is definitely required.

What is meant by business plan?

A person who establishes the business or proposing to establish a business, if asked about his/her business plan, then it may happen that he will write it on a piece of paper about his business plan and yes is nothing but a business plan. But then the next question is has he/she covered all the aspects of business? Yes he may be and yes he may not have covered all the aspects of business.

 A business plan should contain all such essentials in such a manner that after reading it, the reader get to know exactly what the business is all about and are engaged into.

It shall include following:

1. Business Description

It is the short description of the business outlook, future plans, market dependency, present scenario, trend , possible change in trend and its impact on the business, induction of any new product or such other development.

2. Potential competition

In order to stay competitive, knowing your competitors is very important. Analysis of strength and weakness of competitors, and finding the loophole in it and looking for potential of development in it.

Competitive strategies usually fall into these five areas:

• Product
• Distribution
• Pricing
• Promotion
• Advertising

3. Market Strategies

Clearly defined market strategies, next steps, the target market and at present position of the company in the market are of great importance. Business Plan main aim is to create a development budget that will enable the company to reach its goals.

4. Financial Goals

What is the goal of company in coming years in terms of finance? It can be framed in short term and long term goals basis. As Financials of any company is the back for it and the most vital reason to run a business is nothing but to run the business profitably.

5. Promotion Plan

The promotion strategy shall include every marketing tool utilized in the communication effort. This may includes Advertising, Packaging, Public relation, Sales promotion, Personal sales etc.

6. Costing budgeting and cash flow of the company

Take into account all the expenses and profit sourced areas to run the business. The cash-flow statement is one of the most critical information tool in business, helping in reaching out to the fact that how much cash will be needed to run the business and survive in the market, when it is going to be required, and from where the company will be able to manage safely.

7.     Design & Development Plan

The product's design, chart its development within the context of production, marketing and the company itself, and create a development budget that will enable the company to reach its goals.

8.     Operations & Management Plan

How the business functions are going to run. It shall include the details of the logistics of the organization which shall include various responsibilities of the management team, the tasks assigned to every division within the company.

Business plan should be concise and touching on most of the important aspects of the business, at the same time it should be drafted in such a manner that the reader without getting bored , gets a fair idea about our the business engagements.

 Source url – http://enterslice.strikingly.com/blog/business-plan-summary-of-future-plans-of-an-enterprise

Who are eligible for MSME registration?

While thinking of availing the benefits coming from the MSME registration, you might need to know who are fulfilling the criteria forthe eligibility for MSME/ SSI registration. The MSME registration or as the newly introduced term Udyog Aadhaar can be issued by basically any kind of business entity. A few examples would be the sole proprietors, any limited liability partnership firms, Hindu undivided families, registered private limited companies, producer companies, cottage industries etc.

Hence any kind of association of persons that are co-operatively running any business or similar societies may apply for MSME registration. Most of the small businesses get registered for MSME or Udyog Aadhaar are able to enjoy the government given benefits under the MSMED act which stands for micro, small, medium enterprise development under the act of 2006. It is rather recommended to always get an MSME registration in case, you fall into the eligibility criteria. We will now discuss the eligibility criteria for applying for the MSME registration.

Criteria for the application of MSME Registration

Only those business entities that fall under the following eligibility criteria canget an MSME registration as per the MSMED act of 2006.

Now in case, any business entities who are involved with the manufacturing and the production of any goods may consider the following classification to get registered.

• Micro enterprises:- Any business entity that has an investment made in their manufacturing plant and over their machinery that hasn’t exceeded the amount of twenty-five lakh rupees may register themselves under the micro enterprise section.
• Small enterprises:- Any business entity that has an investment made into their manufacturing plant and over their machinery that hasn’t exceeded the amount of five crore rupees, however its more than the higher limit of micro enterprises which was twenty five lakh rupees can register themselves under the small enterprises section of SSI registration.
• Medium enterprises :- Any business entity that has an investment made in their plant and over their machinery that hasn’t exceeded the amount of ten crore rupees, however its more than the higher limit of the investment amount of small enterprises which is five crore rupees can get register themselves under the medium enterprises under the manufacturing section of MSME registration.

Now in case of, any business entities that may be involved with the service sector then their financial limits will have different MSME registration eligibility criteria.

• Micro enterprises:- Any business entity that has an investment in equipment that hasn’t crossed the limit of ten lakh rupees can register under micro enterprises for the service sector.
• Small enterprises:- Any business entity that has an investment in equipment that hasn’t crossed the limit of two crore rupees but is more than the higher limit of investment of micro enterprises which is ten lakh rupees may register under small enterprises of the service sector.
• Medium enterprises:- Any business entity that has an investment in equipment that hasn’t crossed the limit of five crore rupees but is more than the amount of higher limit of investment of small enterprises which is two crore rupees then they may register themselves under the medium enterprises of the service sector.

It is recommended to most of the businesses to obtain MSME registration under the MSMED act and get various benefits out of which the best one would be the protection against any delay in the payments. So look for which criteria you fit in to get your MSME Registration done in a hassle-free way. We at Enterslice are constantly available to help you with immediate solutions in order to guide you and prepare your documents. You can dial our helpline number or drop us an email so that we can revert you back as soon as possible. We make sure to offer reliable help to those who are looking forward for instant solutions at your end.

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What is a service level agreement?

A Service Level Agreement (SLA) is a formal document which the Service Provider and the user of the services mutually agree to. It defines the terms of the services expected from the service provider. It is output-based where the purpose is to define what the customer shall receive and in what manner. 

A Service Level Agreement documents the arrangement between service providers and customers who are the end users. Service Level Agreement consists of the following metrics that define levels of service:

1. A brief description of the services to be provided as agreed between the parties,
2. Objectives,
3. Reliability and Responsivenessexpected of the service provider,
4. The Deliverables and the procedure of reporting,
5. Consequences for failing to meet deliverables,

1. Performance indicators,
2. Prioritized areas,

8. Hierarchy of contacts and escalation of problems,

1. Periodic Reviews

The exact metrics for each Service Level Agreement varies as per the service and the service provider, which must be provided in a specific and detailed manner. An SLA will comprise technical definitions which shall then be followed in the rest of the document.

A Service Level Agreement may form a part of a Master Service Agreement (MSA) with a Statement of Work (SOW) to support the actual scope of the work involved in the transaction. 

Who uses Service Level Agreements?

SLAs are most common in the IT markets where the companies often rely on external services for smoother operations. However, there are many more business relationships which can be governed by a Service Level Agreement.

These days, popularly, the businesses outsource a wide range of services. In such cases, it is the SLA which defines the relationship between the client company and the service provider, which included logistics providers, accounting services, freelancers, consultants etc. The Service Level Agreement thus contributes to a mutually beneficial and unruffled relationship between the parties. SLAs are also very popular among internal departments in larger organizations.

What are the advantages of Service Level Agreements?

A Service Level Agreement is technical in nature and specific to the scope of services which makes it easier for the parties to stay focused on the project benefitting both the parties.  

Service Level Agreements provide the performance index as well as the provisions of periodical review of the stages of the service. This ensures both parties to stay updated and on track as per the time frame decided.  

Thus, Service Level Agreements help keep the parties on the same page.

What are types of Service Level Agreement?

Though SLAs are drafted as per an individual project and the services being provided, yet broadly can be categorized as follows:

1. A customer service level agreement- with an external customer.
2. An internal service level agreement- between the departments of the same organization.
3. A vendor service level agreement- with a vendor.

The above three types can be supportive of each other in the same project.

MSME Registration and its Benefits

Micro, Small and Medium enterprises in India need to register themselves as MSME with the Ministry of Micro, Small and Medium Enterprises. The MSME registration also called the Udyog Aadhaar registration is not mandatory by law but the additional benefits that come with the registration are encouraging enough for the owners and promoters of these enterprises to get the unit registered.

This industry offers the highest employment opportunities to the general public. The sector employs 69% of the total employed crowd in India, contributes 45% to the manufacturing sector and 45% to exports and is expected to contribute 50% to India’s GDP by 2024.

The business entities that can benefit under the MSMED Act are:

• Proprietorship firms
• Partnership firms
• LLPs
• Private Limited Companies
• Public Limited Companies

The benefits of MSME registration are:-

1. Central Government Benefits:

• Under Priority sector lending, easy sanction of loans from banks
• Loans at subsidized rate of interest from banks
• Indirect Tax exemption scheme
• Exemption under Direct Tax Laws
• Protection against delay in payment of loans as per the Delayed Payments Act.

1. State Government/ Union Territory incentives for MSMEs:

• Development of specialized industrial estates
• Tax subsidies
• Power tariff subsidies
• capital investment subsidies

1. Other Benefits:

• Bank loans to MSME’s are cheaper by at least 1-1.5% compared to other businesses
• Under the Mudhra Loan Scheme MSME get easy credit with collaterals.
• Easier approvals for government agencies for registrations and licenses
• Eligible for government subsidies
• Hassle-free opening of current account for the business
• For Trademark registration, only 50% of the applicable fee needs to be paid by the MSME
• Sponsorship or financial support is received from the Government to participate in foreign expos and exhibitions to showcase products.
• Disputes are resolved faster
• Preference during awarding of government tenders

The UdyogAadhaar came into effect from September 2015. The MSME Registration is a simple process and can be applied online or by submitting the application form at the nearest zonal/branch office of NSIC (National Small Industries Corporation). It is a 12-digit number issued by the Ministry and remains the same throughout the lifetime of the business.

The following documents need to be submitted along with EM--II for UdyogAadhaar registration:-

1. Clearances from the Pollution control Board, Drug Control Board.
2. Proof of ownership of the premises or rent receipt/ NOC from owner in case of rented property
3. Partnership Deed or Memorandum of Association and Articles of Association and Certificate of Incorporation along with an authorization of one of the directors to sign the application form
4. Industrial license copy
5. Purchase bill of machines installed
6. Personal Aadhaar number of the directors, name of the Industry, Address of the business unit, bank details of the business

Once uploaded, the registration number is received via email on the email id provided.

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