NGO Registration in India – Detailed Analysis

  • June 29, 2020
  • NGO
No Comments

NGO or Non Governmental Organization is an organization that is incorporated for non profit or charitable activities to give support to the underprivileged section of the society. It resolves various issues related to social, legal, cultural, child education, environmental, art, science etc. The term “NGO” is used by the government to refer those entities which have no government status and are operated by citizens on voluntary initiatives without any aid from state or central governments.

Page Content

Need for NGO Registration

The need for NGO Registration arises if you wish to establish a non-profit organization and wants to work for the betterment and advancement of any specific section of the society. Registering a NGO gives legal recognition to the entity and makes it more credible in the legal scenario and various other contributors.

In India, an NGO can be registered in following three legal possible ways:

  • Society Registration as per Societies Registration Act, 1860
  • Trust Registration under the Indian Trusts Act, 1882
  • Section 8 Company Registration as per Companies Act, 2013

All the above different categories of NGO are regulated by different act and have many different features.

You can choose any of the above category based on your personal preference and requirement in addition to the diversity and scale of operations. In this article, we will guide and clarify your doubts related to NGO Registration

Advantages of NGO Registration in India

Following advantages make registration of NGO a viable decision:

  • An NGO which is registered gets a legal status and is accountable to receive funds. For example, when an individual donates some funds to the registered NGO, it is received under the name of the organization and is used only for the activities of such NGO. However, if an unregistered NGO receives any such donation, it can be received under anyone’s name which may be use for their own selfish purpose.
  • A Registered NGO can seek various tax exemptions from the Income Tax Department
  • A Registered Organization strengthen the social, ethical and legal norms of our society.
  • To have a bank account on the name of NGO, it is compulsorily required to get registered as Society, Trust or Section 8 Company.

Documents Requirement and Registration Process for NGO Registration

As an NGO can be registered in different legal forms, hence its document requirement and registration process differs for each type of legal entity:

NGO Registration in India

1(a) Documents for registering NGO as Trust
Following documents are required to register NGO as a Trust:

  • Details of trustees like name, contact information, father’s name, email address, designation etc.
  • Address proofs of trustees like Voter’s ID, Passport or Driving License etc.
  • Proof of the registered address like Electricity Bill/Water Bill/Gas Bill etc.
  • In case of rented property, a notarized rent agreement along with NOC from Landlord is required

(b) Process of Registering NGO as Trust

  • After arranging all the documents, a draft deed needs to be drafted
  • You are required to choose a unique name for your NGO and determine the name of settler, 2 trustees and details about beneficiary
  • After this, MOA and its by-laws needs to be prepared and a proper trust deed needs to be executed on stamp paper of sufficient value.
  • Finally, the trust deed will be signed by all the trustees and the settlor and will be registered online by requisite fee
  • On successful payment for registration, it will take around 8-10 days for registering online NGO as trust under Indian Trust Act, 1882

2(a) Documents for registering NGO as Society

  • Name of the society
  • Address proof of the office with NOC
  • List of all the members of the society
  • Identity proof of all the 9 members like Driving License, Passport or Voter ID etc.
  • Two copies of MOA ans its by-laws

(b) Process of Registering NGO as Society

  • First of all, choose a unique name for your NGO
  • Submit copies of all the desired documents to the Registrar of the Societies of the State Government
  • After verification of all the documents, an incorporation certificate will be issued
  • It takes around a month of time to register NGO as Society

3(a) Documents for registering NGO as Section 8 Company
The following documents are required to register NGO as Section 8 Company:

  • The unique name of the company for registration
  • Registered Office address proof like Electricity Bill or Water Bill or Gas Bill
  • NOC from the owner of the Registered Office
  • Identity proof of all the directors like Copy of Passport or Voter ID etc.
  • PAN Card of all the promoters and directors

It takes about 8 to 10 days for registering NGO as Section 8 Company. For more information, click here.

Register your Section-8 Company ₹ 12,000/- only (Inclusive of all fees)

Choice of Model for NGO Registration

While registering an NGO, the first essential decision among many is to choose the type of model. Hence, through the below table we have tried to differentiate between the multiple option of NGO Registration. Depending on your orientation, level of operation, structure of the organization, compliance requirements, you can choose one.

ParticularsTrustSocietySection 8 Company
Governing AuthorityTrust Act of every stateState provisions of Societies Registration ActCompanies Act, 2013
Number of MembersMinimum  – 3 Maximum – 21Minimum – 7 Maximum – UnlimitedMinimum – 2 Directors/Sharehoders
DocumentTrust DeedMemorandum of Association, By-laws, FormsMOA and AOA
RegistrationWith the Sub- Registrar or the District Registrar of the particular area in which the registered office of the Trust is situatedWith the District Registrar where the registered office of the Society is situatedOnline Registration on the official website of MCA
Member of BoardFounder of the Trust or Managing TrusteesExecutive CommitteeDirectors
Management of PropertyBy TrusteesBy Executive Committee MemberIn the form of resolution with the consent of the Board of Directors
Revocation/Dissolution or Winding upIrrevocable in nature. It can be merged with any other trust having a similar objective by the permission of the courtAs per By-laws of the SocietyAs per rules and regulations of Companies Act, 2013
Annual CompliancesNo Annual Filing needs to be done. However, the board of trustee must maintain the proper books and accountsAnnual filing with the Registrar of Society providing list of names, addresses and occupations of its managing committee membersAnnual filing of accounts and the Return of the company with the Registrar of Companies

Conclusion

Irrespective of its various forms, NGO helps in aid and development of underprivileged and also helps in encouraging and promoting commerce, science, arts, literature etc. Any profit if earned is utilized for the well being and growth of the society at large.
Now, if you are looking to start your own NGO, you need to first decide which type of NGO you wish to establish. Once you decide, you just need to go with your plan and can get your NGO registered with the help of a professional consultant.
Legal Window is the leading consultant in Jaipur which helps in providing fastest NGO License. So what are you thinking? Contact Legal Window now or drop us a mail.

Share this article with your network

CS Urvashi Jain is an associate member of the Institute of Company Secretaries of India. Her expertise, inter-alia, is in regulatory approvals, licenses, registrations for any organization set up in India. She posse’s good exposure to compliance management system, legal due diligence, drafting and vetting of various legal agreements. She has good command in drafting manuals, blogs, guides, interpretations and providing opinions on the different core areas of companies act, intellectual properties and taxation.

About us

LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost.

Ask an Expert

No Comments

Leave a Comment

More from our blog