How to Start an NGO in India

NGO Registration - An Overview

An NGO works independently for the welfare of the general population. Local, national, or worldwide non-governmental groups work together effectively towards a social goal. Registering a non-government organisation involves complex legal procedure that has to be adhered to as per the law. It is important to conduct prior study into the budget, activities, funds, volunteers, and other factors because each of them works for a distinct cause and encounters criticism. Vakilsearch provides a complete unit for registering your NGO.

Steps for NGO Registration Online

NGO registration in India is governed by the following Acts

• The Public Trust Laws of Each State, 1882
• Societies Registration Act, 1862
• The Companies Act, 2013

It is essential to adhere to all the guidelines and requirements outlined in the three Acts mentioned above. The following factors must be taken into consideration prior to registration

The objectives of the organisation must be stated in the mission statement, as well as the plan for achieving them. A vision statement must describe the organisation's long-term objectives and guiding principles.

The NGO registration management, operations, and functions are handled by the governing body. It also involves planning and executing initiatives, as well as recruiting volunteers or paying employees. Among other things, the members of the governing body are responsible for developing the plans for fundraising, alliances, and personnel management. It is best to have financial consultants on the board as well for organisations that only rely on donations.

In order to comply with legal requirements, it is imperative that the members draft the trust deed in the case of a Trust, the bye-laws in the case of a Society, and the Memorandum of Association (MOA) and Articles of Association (AOA) if it is a Section 8 company. The following documents has to provided

• The NGO's registered office address
• Registered organisation's name
• Information about the members guidelines
• Management of the NGO functional model
• NGO workspace objectives
• Operating procedures
• Financial information, including fund management and collection

It is still advisable to get these formulated with the subsidy of legal experts.

NGO Has to Be Registered either as a Trust, Society or Company

Procedures for registering under the public trust in India are governed under the state's current Public Trust Act. The following procedure shall be heeded for the objective of enrollment of the Trust

• Step 1: Fulfil the application structure
• Step 2: Registering under the Indian Trust Act,1882
• Step 3: The trust deed and other required documents, such as a voter identity card, driver's license, passport, an Aadhaar card, and a water or energy bill for the address must be submitted with the application
• Step 4: To have a trust registration, the trust author must physically attend at the register office on the designated registration date

Procedure to Register Under Societies Registration Act, 1862

• Step 1: Decide the society's name
• Step 2: Submit the office's address verification to register
• Step 3: Submit the required ID paperwork
• Step 4: You must submit two copies of the MOA, the bylaws of the Society, a letter of consent from each member, an affidavit, and the society's bylaws.

Note: The registration method varies from state to state.

Procedure to Register Under the Indian Companies Act, 2013

• Step 1: Fill out a form and submit it with the cost to see if the proposed name for the business is available
• Step 2: After confirmation, the MOA and an advocate's certification denoting that it complies with the Companies Act, 2013 must be submitted to the board along with a request for a special license under Section 8 of the Companies Act, 2013.
• Step 3: Once the license has been granted, you can apply for the incorporation's final form.

Procurement of Special Licences

If the NGO has to hire foreign workers, operate in a region that requires a special license, or work in a tribal territory, it must obtain a specific license. To open an office, a Shop and Establishment Act,1947 permission is necessary. Additionally, inner line permits, FCRA registration, and a no-objection letter with a work visa are needed for workspaces in restricted regions or tribal zones. A no-objection certificate might also be necessary for foreign donations.

Before registering under any of the aforementioned laws, international social workers who wish to create Non-Governmental Organisations (NGOs) in India must first get a no-objection certificate and special authorisation from the Reserve Bank of India (RBI).

Additionally, NGOs must submit their annual reports, the activities they carried out to get the license under Section 12A of the Income Tax Act, 1961 and applications for exemptions under Section 80G of the Act in order for donors to enjoy tax benefits.

What to Consider When Starting an NGO?

Here are some things to consider when starting an NGO:

• Your passion and commitment: Starting an NGO is a lot of work, so it's important to be passionate about the cause you're working for. You also need to be committed to the long haul, as it can take years to build a successful NGO.
• The need for your NGO: There needs to be a need for your NGO in the community. Do some research to see if there are other organizations working on the same issue. If there are, you need to find a way to make your NGO unique.
• Your target audience: Who are you trying to help? Once you know your target audience, you can tailor your programs and services to meet their needs.
• Your funding: NGOs need money to operate. You need to have a plan for how you're going to raise money. There are many different ways to raise money, such as grants, donations, and fundraising events.
• Your team: No one can start an NGO alone. You need to build a team of people who are passionate about the same cause as you. Your team should have a variety of skills and talents, as you'll need to wear many hats when running an NGO.
• The legalities: There are legal requirements that you need to follow when starting an NGO. These requirements vary depending on the country or state where you're registering your NGO.

Is It Easy to Run an NGO?

It is not easy to run an NGO. It requires a lot of hard work, dedication, and time. However, it can be very rewarding to make a difference in the world.

What Makes an NGO Successful?

Here are some things that make an NGO successful:

• A clear mission and vision: Every NGO should have a clear mission and vision that everyone on the team understands and is committed to.
• A strong board of directors: The board of directors is responsible for overseeing the NGO and ensuring that it is run effectively. The board should be made up of people who are passionate about the cause and have the skills and experience to help the NGO succeed.
• A well-managed financial system: NGOs need to have a sound financial system in place to track their income and expenses. This will help them to ensure that they are using their resources wisely.
• A skilled and dedicated staff: NGOs need to have a team of skilled and dedicated staff who are passionate about the cause. The staff should be able to work independently and as a team to achieve the NGO's goals.
• A strong marketing and fundraising plan: NGOs need to have a strong marketing and fundraising plan in place to raise the money they need to operate. They should also have a plan for how they're going to reach their target audience.
• A commitment to continuous improvement: NGOs should always be looking for ways to improve their programs and services. They should also be open to feedback from their stakeholders

Why Vakilsearch?

Vakilsearch has a team of NGO experts who can complete the registration process easily without much hassle, registering an NGO is not required in order to carry out social and philanthropic activities. However, only NGOs that have been registered are permitted to conduct the specific fundraising activities. The Governing board has the authority to decide whether to register the NGO or to go on as an unregistered organisation. The purpose of registering is to guarantee the efficiency of NGOs and to give them access to perks like financial support and tax deductions from specific incomes.

FAQs on How to Start an NGO in India