Overview of

NGO REGISTRATION

NGO Stands for Non-Governmental Organization, is an organization that works for charitable, non-profit and for social welfare purposes like development of sciences, literature and other noble causes like relieving scarcity, providing education to the needy, and giving medical support.
NGOs must uphold essential principles and values, with a special emphasis on transparency and accountability regarding their activities, given their crucial role in various aspects of development. It is of utmost importance that NGOs provide clear information to their members, stakeholders, and beneficiaries about their funding, operations, and goals. By doing so, they enhance credibility among all parties involved and significantly contribute to the NGO's overall success.

Overview of

NGO Registration

NGO Stands for Non-Governmental Organization, is an organization that works for charitable, non-profit and for social welfare purposes like development of sciences, literature and other noble causes like relieving scarcity, providing education to the needy, and giving medical support.

NGOs can be registered in India under the following laws:

01

Trust under the
Indian Trust Act, 1882.

02

Society under Societies
Registration Act, 1860.

03

Section-8 Company under
Companies Act, 2013.

Though all the three forms of NGOs are widely accepted by donor organisations but there are certain differences with respect to their registration, mode of operation, membership, cost and ease of getting donations.

Complainto is here to guide you in making informed decisions and provide step-by-step assistance throughout the entire registration process for your NGO company. It’s important to note that NGOs are sometimes mistaken for non-profitable businesses, which refer to conventional companies that are not generating profits.

Classification of

NGOs IN INDIA

Based on Areas of Focus

Social Welfare NGOsThese NGOs work towards the overall welfare and development of society, addressing issues such as poverty alleviation, education, healthcare, women empowerment, child rights, etc.
Environmental NGOsThese NGOs focus on environmental conservation, promoting sustainable practices, and addressing climate change-related issues.
Human Rights NGOsThese NGOs work to protect and promote human rights, fight against discrimination, and advocate for social justice.
Health NGOsThese NGOs concentrate on healthcare services, awareness campaigns, and initiatives related to specific health issues like HIV/AIDS, cancer, or mental health.
Education NGOsThese NGOs primarily work towards providing educational opportunities, improving access to quality education, and promoting literacy.

Based on Legal Status

TrustsNGOs Registered as trusts
SocietiesNGOs registered as societies are governed by the Societies Registration Act, 1860 and function under a memorandum of association and rules and regulations.
Section 8 CompaniesNGOs registered as Section 8 companies are non-profit organizations incorporated under the Companies Act, 2013 and have specific provisions for their functioning.

Based on Sources of Funding

Government-funded NGOsThese NGOs receive funding from government agencies or programs to implement specific projects or initiatives.
Donor-funded NGOsThese NGOs rely on donations and grants from individuals, corporations, foundations, and international organizations to support their work.
Self-funded NGOsThese NGOs sustain themselves through their own revenue-generating activities, such as income from selling products or services.

It’s important to note that NGOs can often have multiple classifications, as they may focus on various issues, have a specific legal structure, and receive funding from different sources.

Difference Between

Trust, Society & Section 8 Company

S.NoBasis of DifferenceTrustSocietySection 8 Company
1Statute/LegislationTrusts governed by the Indian Trust Act, 1882.Societies are governed by the Societies Registration Act 1860, which is an all- India Act. Many states, however, have variants on the Act.Section 8 Companies are governed by the Indian Companies Act, 2013.
2JurisdictionThe trusts are under the jurisdiction of Deputy Registrar/Charity commissioner of the relevant area.The power to register a society lies in the hand of Registrar of societies (charity commissioner in State).The power to register a section 8 Company lies in the hand of Regional Director & Registrar of Companies of concerned state.
3Registration DocumentFor Registration of Trust main instrument is Trust deed.For Registration of society main instrument is Memorandum of Association and rules & regulations.For registration of section 8Company main instrument is Memorandum and Articles of Association.
4Stamp DutyTrust deed to be executed on non- judicial stamp paper, vary from state to state.No stamp duty required for memorandum of association and rules and regulations.No stamp duty required for memorandum and articles of association.
5Members RequiredAt least two trustees are required to register a public charitable trust. In general, Indian citizens serve as trustees, although there is no prohibition against non-natural legal persons or foreigners serving in this capacity.– Minimum seven members are required for formation of state level society.
– Eight members required from separate states for formation of national level society.		Minimum 2 for a private company and 7 for a public ltd company.
6Board of ManagementTrusts are governed by their trustees or by board of trustees.Societies are usually managed by a governing council or managing committee.It is managed by the board of directors.
7Legal Titleegal title of the property of a trust vests in the hands of trusteesIn a society, all properties are held in the name of the society.In section 8 Company, all properties are held in the name of Company.
8Revocable/ IrrevocableIndian public charitable trusts are generally irrevocable.Societies may be dissolved. Dissolution must be approved by at least three-fifths of the society’s members.A section 8 Company may be dissolved.
9In case of InactivenessIf a trust becomes inactive due to the negligence of its trustees, the Charity Commissioner may take steps to revive the trust. Furthermore, if it becomes too difficult to carry out the objects of a trust, the doctrine of cy pres, meaning “as near as possible,” may be applied to change the objects of the trust. Thus, it appears that grantors can feel fairly secure that the charitable nature of a trust will be honored, even if the original, specific purposes of the trust cannot be carried out.Upon dissolution, and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the society. Rather, the remaining funds and property must be given or transferred to some other society, preferably one with similar objects as the dissolved entity. Upon dissolution and after settlement of all debts and liabilities, the funds and property of the company may not be distributed among the members of the company.Rather, the remaining funds and property must be given or transferred to some other section 8 Company, preferably one having similar objects as the dissolved entity.
10Annual ComplianceThere is no requirement of annual return filing.Societies must file annually, with the Registrar of Societies, a list of the names, addresses and occupations of their managing committee members.There is requirement of annual compliance by filing of annual accounts and return of company with the ROC.
11Online filing facilityOnline filing facility is available.Compliances are less complicated & are less time consumingOnline filing facility is not available. Everything has to be submitted in the office of Registrar of Societies in hard copy. Compliances are more complicated & time consuming.Online facility is available. The Compliances, like annual filing, appointment & removal of directors, shifting of registered office, increase in capital, change in object clause & others can be done online at MCA portal. It is very easy, time saving and transparent process
12Time Period involved in registration/Formation10-15 days30-45 days60-75 days
13Cost factorLowMediumHigh
14Registration with Income Tax u/s.
12A & 80G as NGO		At par with society & Section 8 Company.At par with trust & Section 8 Company.At par with trust & Society.
15From the point of view of Grant of subsidy by governmentLess preferredLess preferredMost preferred
16From the point of view of Foreign Contribution Regulation Act,
(FCRA) registration		Equally preferredEqually preferredMost preferred
17Transparency in workingLowLowHigh as everything is available online
18Change in board of directors/ trustees
Members		EasyComplexEasy
19Change of Registered officeDifficultDifficultEasy

Benefits of

NGO Registration

Below are the benefits that you get for NGO Registration

01.

The income of an
NGO are exempt from taxes

02.

After 12AA registration NGOs/trust will become eligible to apply for grants from any domestic and international governmental agency including private donors

03.

NGOs can also avail the benefits under FCRA registration.

04.

Tax exemption to donors

05.

Increase in goodwill and credibility of the organisation

06.

NGOs and other charitable organisations with 80G registration are likely to receive more government funding and international contribution.

List of Documents Required for

Trust or NGO Registration

Below are the documents required for the process of Trust or NGO Registration:

  • Identity proof of Trustor, Trustees and Settlor like Aadhaar, Voter ID, Passport
  • Address Proof- Rent Agreement, Electricity Bill, Certificate of Property, NOC from landlord
  • Trust deed’s objective
  • Trust Deed
  • Trustee and settlor Photos
  • Trustee and settlor PAN

List of Documents Required for

Society Registration

Below are the documents required for the process of Society Registration:

  • PAN Card of all the serving members
  • Residence Proof of all serving members like Bank Statement, Aadhar, Electricity Bill
  • MOA and AOA
  • Rules and Regulations /By laws of the Society
  • Address Proof of the office- Rent Agreement, Electricity Bill, Certificate of Property, NOC from landlord
  • List Of All Members
  • Covering Letter A covering letter reflecting Society’s proposed objective should be affixed to the application for society registration. It must enclose the signature of all founding members.
  • A declaration must be provided by the Society’s president clarifying that he is competent to hold the said post.

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OUR PLANS FOR

Society/NGO Registration

  • Standard
  • ₹ 9999
    per (Including Government Fee)
  • NGO/ Trust Registration Certificate

Have A Question?

FREQUENTLY ASKED QUESTIONS (FAQs)

NGO Registration

For registering a Trust in India you have to pay a registration fee of Rs.100 along with Rs.1000 for maintaining a sample of Trust Deed to the Sub Registrar.

Yes, in India single person can register a trust if his objective is charitable activities and providing relief for poverty, medical and educational purposes.

A Trust can be registered either online via the Trust Registration portal or offline with the appropriate authorities.

For education trust registration, the process is generic. However, in the education Trust deed forma in Delhi, you need to specify precisely the reason behind the incorporation.

To open a charitable trust, you need to follow Charitable Trust registration process is as follows:

1) Choose a trust name

2) Choose a cause

3) Furnish a Charitable Trust deed with all the requisite information

4) Furnish the documents

5) Fill out the application form

6) Get the application assessed

7) Form a Trust online by getting the Charitable trust registration certificate

Trust registration is mandatory in India under the Indian Trusts Act, 1882. There are a number of reasons for this, including:

  • To provide legal protection to the trust and its beneficiaries
  • To provide tax benefits to the trust and its donors
  • To promote transparency and accountability

A religious trust is a legal entity that is created for the purpose of promoting a religious purpose.

To set up a charitable or religious trust, you will need to follow the specific procedures for the state in which you are creating the trust. However, the general steps involved include:

* Preparing a trust deed

* Appointing a board of trustees

* Registering the trust with the relevant authorities

* Opening a bank account for the trust

A minimum of 7 Indian nationals can form a society in India as per the ‘Societies Act, 1860.’

The MoA of the Society has to be drafted, and it should enclose the given particulars and clauses:

  • The proposed undertaking and objectives of the Society
  • The details relating to the serving members intending to set up the Society
  • The names, contact detail and occupation of all the council, directors, governors, committee, or other governing bodies accountable for dealing with Society’s management affairs.

They are not allowed to perform their undertakings outside the scope of obligations mentioned in the MOA and By Laws of the society.

society registration in India

A society is a non-profit organization that is formed by a group of people for a common purpose. Societies are registered under the Societies Registration Act, 1860.

There are many benefits to registering a society, including:

  • Legal status: A registered society has a legal personality separate from its members. This means that the society can own property, enter into contracts, and sue or be sued in its own name.
  • Tax benefits: Registered societies are eligible for certain tax benefits, such as exemption from income tax on donations.
  • Access to government funding: Registered societies are eligible to apply for government funding for their activities.
  • Credibility: A registered society is more credible than an unregistered society. This can be important when dealing with donors, partners, and other stakeholders.
  • No Records to be kept :Record-keeping requirements and compliances are minimum
  • Low Compliance Cost : Cost of compliance is low or very less

The requirements for registering a society vary from state to state. However, the following are some of the general requirements:

  • Minimum number of members: The minimum number of members required to form a society varies from state to state. However, it is typically 7 or more members.
  • Memorandum of Association (MoA): The MoA is a document that sets out the aims and objectives of the society, as well as the rules and regulations governing its operation.
  • Articles of Association (AoA): The AoA is a document that sets out the details of the society’s management structure, including the roles and responsibilities of the members, the committee, and the officers.
  • Registered office: The society must have a registered office in India.
  • Application for registration: The society must submit an application for registration to the Registrar of Societies in the state where the society’s registered office is located.

The procedure for registering a society varies from state to state. However, the following are some of the general steps involved:

  1. Form a group of at least 7 people who share a common interest.
  2. Choose a name for your society.
  3. Draft the MoA and AoA.
  4. Obtain a PAN card for the society.
  5. Find a registered office for the society.
  6. File an application for registration with the Registrar of Societies.
  7. Pay the registration fee.
  8. Obtain the certificate of registration from the Registrar of Societies.

The different classes of Indian Trusts are as follows:

  1. Simple Trusts, where its only purpose is the holding of estate by the trustee
  2. Special Trusts, where the trust is created for a particular purpose
  3. Express Trusts, created by a mutual agreement between parties
  4. Implied Trust, deduced from the conduct of the parties
  5. Public Trust, where the beneficiaries include the general public
  6. Private Trust, where the beneficiaries include a private group of individuals
  7. Constructive Trust, created as a result of the implementation of law

Section 4 of the Indian Trusts Act states that the purpose of a trust is lawful unless it has been:

  1. Forbidden by Law
  2. Defeats the purpose of any law
  3. Is fraudulent
  4. Implies injury to property or person
  5. Is immoral in the opinion of the court
  6. Is opposed to a public policy

Tax exemptions under Section 11 of the Income Tax Act can only be claimed by charitable and religious public trusts.

Once obtained, a society registration is valid for lifetime unless canceled or revoked, and there is no requirement of its renewal.

Yes, the object of society can be altered in the manner prescribed under law. For the purpose a resolution is passed by the members of the society, and the same is intimated to the Registrar within the prescribed time frame.

The composition of the Governing body of a Society is composed of the governors, council, directors, committee, trustees or other bodies to whom the management of its affairs is entrusted by the rules and regulations of the society.

No, unregistered Societies cannot raise funds from the public

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