NGO Registration

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  • NGO Registration

    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.

  • NGO Registration Methods?


    Broadly, NGO Registration in India can be done under the following methods:-

    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 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

    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.

    Section 8 Companies

    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.

  • NGO Registration Process Under Trust, Society and Company Act

    TRUST REGISTRATION PROCESS
    Any person who is competent to contract or has power and property that is transferable can create a trust. Just like any other organization or NGO, a Trust to needs registration. The process for registering a trust is fairly simple.
    Before you begin the process of registering a trust, you need to put together the following:

    • A name for the trust
    • Its Registered Address
    • Objects of the trust(charitable or Religious)
    • One settler of the trust
    • Two trustees of the trust
    • Property of the trust-movable or immovable property (To save on stamp duty, an initial amount is given to be the initial property).

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