An NGO can be started under three Acts: Indian Trust Act, Indian Societies Act & Companies Act. At Vakilsearch, we'll help you with the right option and take you through the entire process.
We do a full consultation to understand which registration would suit you best.
We will inform you of all the documents required and complete the paperwork
We will register your NGO
An NGO or non-governmental organisation is a not-for-profit entity that does work for the welfare work for the poorer sections of society or toward a particular cause. Their focus may be environmental, human or animal rights, improving health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art.
That said, many NGOs may also be fronts for political or religious interests. Being not-for-profit, these entities cannot pay out any profits as dividends to members; instead, any profit must be reinvested toward the cause. NGOs raise money from donors, who may or may not receive tax breaks on their donations. In India, an NGO can be set up as a trust, section-8 company or a society.
Broadly, NGO Registration in India can be done under the following methods:-
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 terminated without the beneficiary's permission.
Although there is no national law that governs trusts, States like Maharashtra and Gujarat have Public Trust Acts to look into the affairs of NGOs.
Societies can be referred to member-based organizations for charitable purposes. They are run by a governing body or a managing committee.
Unlike with trusts, all societies come under the preview of Indian law. Societies in India come under the Societies Registration Act, 1860.
A 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.
Once your Trust Deed is registered, you can now run your trust in accordance with the Trust Act.
The MoA includes several clauses such as the name of the society, the address of the registered office, an object for the formation of society and details of the general body.
Trusts are managed by the trustees, while the society’s functioning is managed by a committee or the managing council. A Section-8 company, on the other hand, has a board of directors. A trust must have at least two trustees, while a society requires seven (in case of a state-level society) and eight (in case of a national level society) committee members. A section-8 company requires two members for a private limited company and seven members to register it as a public limited company.
A trust is governed by the Registrar of Trusts. Therefore, the Trust Deed needs only to be registered with it. A society is governed by the Registrar of Societies. Section 8 companies are overseen by the Registrar of Companies as well as the commissioner of the relevant state where they are set up; such a company, therefore, needs to be subjected to an audit each year.
While private limited companies can be set up in around two weeks, trusts, societies and section-8 companies attract substantial scrutiny from the bodies that govern them. Therefore, they take longer to be set up. Governing bodies need to be convinced that the entity has a genuine interest in the cause. It takes up to 20 days to register a trust, up to 45 days to register a society and up to 75 days to register a Section-8 company.
To register a Non-Government Organization or an NGO you need to fill the following forms.
This form is used to register the name of the NGO, before quoting the name make sure that it is not copyrighted.
The form is needed to apply for a license to run the NGO. With this form, you need to submit the MOA and the AOA of your NGO. Apart from these documents, an applicant has to state and submit the following.
You can either fill this form together with the INC 7 or submit it within 30 days after you have submitted the form. This form asks for details of the registered address of the NGO.
To appoint Directors for your NGO, you need to fill the DIR 12 form and submit it to the registrar. You have to ensure that form is submitted within 30 days from the date of the appointment of the directors.
Just tell us a little bit about your business and you'll have the registered trust deed in 20 working days (subject to government approval). It's that simple. In addition to yours, we'll be handling around 400 requests this month.
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.