An NGO can be started under three Acts: Public Trust Act of all states, Indian Societies Act and Companies Act.In India, a Trust, Society, Sangathan, Sangh, Non-profitable company all fall under an umbrella term NGO. Income tax exemption is available for all non-profit NGOs.
At startup solicitors, we will help you select the right option and guide you through the entire NGO registration process.

How to do NGO Registration in India

Acts governing NGO registration process

The national authority in India allows for online registration of an NGO under three laws:

a. Trust under Public Trusts Act of each state.
b. Society under Societies Registration Act 1860
c. Section 8 Company under Companies Act, 2013
Each law defines the formation of a different type of organization, namely – Trust Registration, Society Registration, and Non-Profit company registration. Choosing the kind of registration procedure for the charitable firm is crucial. Our experts will help select the suitable option that befits your vision and guide you with the online registration process.

Why register an NGO in India?

BENEFITS

The legal status of organizations makes sure they are accountable for all the funds and donations they collect.
A registered NGO thinks, works and develops in a systematic manner and functions accordingly. For example, when an individual donates resources to a charitable fund, it is received under the name of the organization and used for the benefit of others. In an unregistered firm, the asset can be received under anyone’s name and used for their own profit.
A company that is registered as an NGO stays within the ethical, social and legal parameters of the society.
The basic requirement for running a company is to have a bank account under its name. In order to open an account, it is mandatory to be registered as a non-profitable organization.
The registration of an NGO will also help in tax exemption once they are registered under Income Tax Authorities.

Registration of NGO in India

TRUST

One possible way in which you can register a Non-Government Organisation is by registering it as a trust. This kind of method is used by NGOs who work with eradicating poverty, giving education and providing medical relief. You might want to note that trusts are irrevocable. This means that they cannot change or terminate without the permission of the court.
Although there is no central law that governs public trusts, many states have its own Public Trust Acts to look into the affairs of the public trust.

SOCIETIES

Societies Societies can be referred to member-based organizations for charitable purposes. They are run by a governing body or a managing committee. Unlike trusts, all societies come under the preview of one law known as Societies Registration Act, 1860. Section 8 Companies

SECTION 8 COMPANIES

Section 8 Company has limited liability and cannot make any profits. It is generally formed for promoting science, art, commerce, charity, religion or any other purpose that is useful to society. When compared to Societies and Trusts, Section 8 Companies have more benefit in the sense that they have more legal standing and better credibility among government bodies and donors.

NGO Registration Methods in India – Trust, Society, or Non-profit Company

A DETAILED PROCESS

In India, anybody is free to do social activities without forming an association or organization. But when an individual wants to create a group that involves volunteers, activities, and resources, it becomes important to have proper management in place. To run such companies, trusts and Societies in the correct manner, a certain set of rules need to be followed.

Essential documents for online society registration & trust registration

Before a registered deed is delivered to an NGO, submission of specific documents is required.

TRUST REGISTRATION

For the trust registration, the following papers are mandatory:
A bill of electricity or water stating the address that needs to be registered.
The identity proof of at least two members of the company. The proof can be:
– Voter ID
– Driving License
– Passport
– Aadhaar Card

It takes about 8 to 10 days for online registration to be completed under the Indian Trust Act – 1882. Before the deed becomes valid throughout the country, the settler has to deliver a presentation at the registrar’s office.
Note: It takes about 8 to 10 days for online registration to be completed. On the date fixed for registration, the Author of the Trust shall be present in the Register Office for registration Society registration

SOCIETY REGISTRATION

For a society registration, the following papers are essential:
The name of the society.
Address proof of the office.
Identity proof of all the nine members which can be:
– Driving License
– Copy of Passport
– Voter ID
– Aadhaar card
Two copies of the Memorandum of Association and By-laws of the society.

Note: It takes about 8 to 10 days for drafting the MoA and By-laws of the Society. Thereafter it takes 21 to 30 days for the Society to be registered.

SECTION 8 COMPANY:

For a Section 8 company registration, the following papers are essential:
The name of the Company for approval.
Address proof of the office. It can be electricity or water bill or house tax receipt.
Identity proof of all the Directors which can be:
– Driving License
– Copy of Passport
– Voter ID
– Aadhaar card
The Memorandum of Association and Articles of Association of the Company.

Note: It takes about 8 to 10 days for drafting the MoA and AoA of the Society. Thereafter it takes about 2 months for the entire Company registration to be completed.

Hi :) My name is Muskan Agarwal. I am very headstrong and go getter in whatever i do. I work as a paralegal in the team and try to bring value in my work.

Muskan Agarwal

Muskan@startupsolicitors.com