There are two aspects to this article; one discusses registration of NGO in Dubai and the other part talks about the setting up of Section 8 Company as per the new Companies Act 2013, in UAE.
Setting up NGO in Dubai? Know the Basics.
NGO is a Non-Governmental Organization which operates autonomously, irrespective of any Government, for a social cause. It is a Non-Profit organization.
Any entity intending to incorporate a Non-Profit Organization in Dubai should be mandatory registered with countries having political relations with the UAE or should at least be a subsidiary of any organizations of the United Nations. To qualify as a Non-Profit Organization the entity should be engaged in not for profit professional activity.
As the name suggests, Non-Profit Organizations are a not-for-profit institution, formed primarily to address a social cause. In terms of financial accounting, these Non Profit organizations have to lough back the surplus income it generates through revenue, towards meeting expenses on activities for achieving their cause for which they are incorporated. These activities could be in the areas of scientific, research or education which ultimately should benefit the society or the targeted beneficiaries.
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In Dubai, Non-Profit Organizations with an existing license can start a branch in the free zones like the International Humanitarian City zone or the Knowledge Village. To get approval from the relevant authority for this these organizations should have been in operation for a minimum one year and would be required to submit an audited financial report.
List of Documents and Information Would Be Required for Incorporation of NGO in Dubai?
- Memorandum and Articles of Association of the organization, duly attested by the relevant authorities of the organizations’ parent country and also the Ministry of Foreign Affairs in the UAE
- Board Resolution to open a branch/ in UAE, signed by all the Directors attested by the relevant authority of the parent country and also by the Ministry of Foreign Affairs in the UAE.
- Power Of Attorney (POA) in the Name of the Managing Director who is to manage or set up a branch to be duly attested by the relevant authorities of the organizations’ parent country and also the Ministry of Foreign Affairs in the UAE.
- Names of the Organizations’ members in the UAE
- Details of the social activities that are to be carried out by the NGOs in the UAE
- Previous Year’s Audit Financial report is to be submitted.
Section 8 Company Registration
Registration of a non-profit organization in UAE can be done in the following ways:
- As a Trust through a Trust deed.
- As a society as per the Society Registration Act, 1860.
- As a non-profit company i.e., Section 8 Company as per the Companies Act, 2013 which was earlier a Section 25 Company under the old Companies Act, 1956.
A Section 8 company can be established for the promotion of commerce, sports, art, science, education, research, religion, charity, social welfare, and environmental protection or any such other object. However, a Section 8 company can work towards meeting the above objects provided it intends to lough back its profits or other income towards promoting its objects and is prohibited to pay any dividend to its members.
Incorporation Process for a Section 8 Company – Requirements:
- Minimum two Directors are required to set up a Section 8 company.
- At least one Director should be an Indian Resident and a Citizen of India. The other can be a Foreign National.
- Address of the registered office in India to be furnished.
- Digital Signature and Director Index Number (DIN) of the Directors, for which the following will be required:
- PAN Card or Aadhar Card of individual Directors
- Drivers License/Passport/Election ID/Other Government Issued ID. The documents once submitted the applicants should complete the eKYC procedure to obtain a digital signature in their name.
- Section 8 Company Name Approval. Name must end with words like association, foundation, federation, forum, confederation, chambers; council, etc.
Incorporation Certificate is issued by the Ministry of Corporate Affairs (MCA), Government of UAE, after verifying the form and documents.
For more details about 80G Certificate for Section 8 Companies, 12A Registration for Section 8 Companies and FCRA Registration for Section 8 Companies GCC Filings is there to help out.