Editor’s note: Saheed Akinola Esq, the ZENITHBLOG.com partner blogger, in this latest article, explains how people could register NGOs, charities, foundations, clubs and religious bodies by themselves without stress.
Saheed is a legal practitioner and consultant on farming/agricultural investments.
His expertise covers a wide area such as corporate practice, asset acquisition, property acquisition, sales and management, farm management and consultancy.
He consults for individuals and corporate organization across Nigeria and abroad.
He could be contacted via: lagoslawgurus@gmail.com +2348032493960, +2348050221164, or propertylinelawyers.wordpress.com.
More details in ZENITHBLOG.com’s step-by-step guide for guest bloggers.
Non-governmental organizations which are popularly referred to as NGOs are organizations that are not owned or controlled by government and do not exist to make profit from the work of the organizations for or on behalf of the owners or members of the organizations.
They exist to serve some public purpose and interest rather than just serving the personal interests of the owners or members of the organizations.
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The purpose of their incorporation is for the benefit of the general public or specific sections of the public. Because of this the founders (Trustees) are not the owners of any of the properties of the NGOs and they cannot enrich themselves with the money received which could be in form of contributions and donations both within and outside the organizations.
Corporate Affairs office
Members can only receive payment or benefits in the form of a reasonable salary and for the work they have done as employees of the organizations. Any income realized by the organizations belongs to the organizations and it is to be used for the achievement of the objects of the organizations as stated in their constitutions.
There are different types of Non-Governmental Organizations (NGOs) that are permitted to operate in Nigeria under statute, these include trade unions, community based organizations, social clubs, religious organizations, cultural associations, women’s groups, youth clubs, professional associations, political parties, professional association (NBA) and friendly societies etc.
Incorporated Trustee vs Company Limited by Guarantee
In Nigeria NGOs may be registered as a company limited by guarantee or as incorporated trustees (by which trustees of the NGO, rather than the NGO itself, obtains the status of a body corporate).
Both company limited by guarantee and incorporated Trustee cannot be registered with share capital and cannot be incorporated with the object of carrying on business for the purpose of making profits for distribution to members.
Both Companies limited by guarantee and incorporated trustees are regulated by the Company and Allied Matters Act 1990 (CAMA) and are registered by Corporate Affairs Commission (CAC)
The major difference is that registration of NGOs as company Limited by Guarantee cannot be registered without the authority and approval of the Attorney General of the Federation.
The corporation appoints trustees and from the date of registration, the trustees become a body corporate by the name prescribed in the Certificate of Incorporation and shall have perpetual succession, common seal, legal capacity, and power to hold and dispose land and enter into legally binding contracts. A secretary for the association shall also be appointed.
Who cannot be appointed as Trustees?
The following people cannot be appointed as trustees of NGOs
I. An infant
II. A person of unsound mind
III. An undischarged bankrupt or a person who has been convicted of an offence involving fraud or dishonesty within five years of his proposed appointment. See Section 592(1) of CAMA.
Procedure for registering an Incorporated Trustees:
A search is carried out at CAC office that
1. CAC/IT Form 1 (Application form) which will be completed with the full names, residence, occupation and signature of the Trustees of the Organization and signed by the Chairman and secretary or solicitor.
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2. Two printed copies of the constitution of the association clearly stating its aims and objectives.
3. Two passport photographs of each Trustee attached to the Trustee’s Declaration form sworn to at the High Court with the receipt attached
4. Copy of the resolution adopting special clause into the constitution
5. Evidence of ownership of land or an undertaking in lieu to own a land within 2 years of incorporation.
6. Cuts of the original newspaper advertisement, 2 national newspaper and one circulating in the locality of the association. The notice shall state the name and principal objects of the association, the full names of the proposed trustees and invite objections to the registration of the association within 28 days of the publication. CTC by National Library is also acceptable.
7. Copy of the extract of the minutes of the meeting appointing where the trustees were appointed/elected, having the list of the members present and absent and showing the voting pattern, signed by the chairman and secretary of the Association, which should be in the letter-head of the Association.
8. Trustees Declaration Form duly sworn to at the High Court, confirming that the Trustees were not disqualified from acting as Trustee pursuant to Section 591-592 CAMA.
9. Letter authorizing the person handling the registration process to act for the applicant organization.
Check out 13 simple tips to register NGOs without stress
10. The impression or drawing of the proposed common seal of the association shall be affixed on the application form.
11. Photocopy of valid means of identification of the Trustees and Secretary of the association i.e. any of the following -National ID Card, Drivers Licence, Voters Card, and International Passport.
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12. Any other document of proficiency, especially for professional organization.
13. Original receipts of prescribed registration fee.
In conclusion, anybody that is interested in registering a business for the purpose of making profit should either register it as a private company limited by shares or as business name but those that want to register charity or Non- Government organization can only register either as a company limited by Guarantee or Incorporated Trustee.
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