written by | October 31, 2022

Everything You Need to Know About NGO Registration in India

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Table of Content


An NGO is a non-governmental organisation that works to improve society via philanthropic endeavors. Depending on the business you want to engage in, it can be established as a Trust, Society, or Non-Profit Company. All nonprofit organisations, including Trust, Societies, and Section 8 Companies, are collectively called NGOs in India. Such nonprofit organisations are also known as "Sangathan," "Sangh," and "Sangam." All nonprofit NGOs are eligible for an income tax exemption.  

A trust deed or memorandum of understanding (MoU) must be made to achieve NGO registration. Along with the organisation's goals and missions, the MOU includes the full name and location of the NGO.

We will assist you in making the best decision and guide you through NGO registration in India. Additionally, how to apply for online NGO registration.

Did you know? As of now, 151186 NGOs are enrolled in India.

What Do You Mean by NGO?

NGOs, or non-governmental organisations, are nonprofit corporations founded to aid the disadvantaged segment of society. It aims to promote a variety of concerns, including economic, cultural, legal, environmental, artistic, and scientific ones. They are run by residents on voluntary initiatives, as their name implies, and neither the Union nor the state governments are involved.

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What Kind of NGOs Are Registered in India?

In India, one does not need to create a business or group to engage in social activities. However, good administration is crucial when someone wants to start a group that includes members, activities, and resources.

A specific set of guidelines must be followed to accurately manage NGOs (companies, Trusts, and Societies). An applicant must adhere to the numerous laws to register in any of the methods listed below.  

  • "The Indian Trust Act, 1882," Trust Registration
  • "Societies Registration Act, 1860" Society Registration
  • "The Companies Act, 2013" Section 8 Company Registrations

How are NGOs Classified in India?

NGOs are divided into the following tiers according to their classification:

  1. Based on the orientation level
  2. Based on the operation level

Based on the Degree of Orientation

  • Orientation Toward Charity
  • Service Mindedness
  • Orientation to Participation
  • Positivity Orientation

By The Operation Level

  • Local Community Organization
  • City-wide Institution
  • Local NGOs
  • Worldwide NGOs

NGO Registration in India

In India, there are three different ways to register an NGO: as a trust, society, or Section 8 company.

Trust

Trusts, sometimes known as charitable trusts, are one of the methods to register an NGO. The "trustor" or "settlor" creates the trust by transferring the resources to the "trustee" on their behalf and the benefit of a "beneficiary" on the other side. Trusts are established to assist and support the less fortunate segments of society.

Societies

A collection of people committed to advancing social welfare, the arts, literature, science, and practical knowledge can establish a society. In addition, groups aim to preserve public libraries, museums, and military orphan funds.

Section 8 Companies

A trust and a society are comparable to a Section 8 company. Promoting arts, science, business, sports, social welfare, spirituality, charitable giving, and environmental preservation are the goals of Section 8 companies. They have a Companies Act 2013 registration for charitable purposes and have more credibility with funders, government agencies, and other interested parties.

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Three Different Ways to Register an NGO in India

Societies Registration

If you want to register an NGO in India under the name of a society, you must follow these steps:

  • For your NGO, pick a fitting name.
  • To a Registrar of Societies of a State Government, you must provide two copies of each required document.
  • If the authorities determine that all of your supplied paperwork are accurate, they will award you an NGO Registration Number and an Incorporation Certificate.
  • Typically, it takes a month to complete issuing an incorporation certificate.

Section 8 Company Registration

  • Choose a name that fits your nonprofit organisation and ensure it is distinct from any Limited Liability Partnerships or companies already registered. This suggested name has to be submitted for a reservation using the MCA portal's Reserve Unique Name feature. A maximum of two names may be submitted at once.
  • The MOA and AOA of the organisation, projected P&L statement, an assertion of assets and liabilities, a short outline of the activity, etc., must be prepared once the name of the organisation has been authorised.
  • Add the appropriate papers and the incorporation application to the SPICe Form as attachments.
  • The Certificate of Incorporation (COI) & Licence is provided following accurate application verification. A Company Identification Number (CIN) and the Company's PAN and TAN numbers are included in this COI.

Trusts Registration

  • Create the trust agreement.
  • Select a fitting name for your nonprofit organisation.
  • Establish the settler, at least two trustees, and the beneficiary with specificity.
  • Create the MOA and bylaws, and complete a legal trust deed with all the necessary terms and provisions.
  • Based on the amount of the assets transferred to the Trust, a Trust Deed must be signed upon stamp paper of appropriate value.
  • A Trust Deed must also be ratified by the settlor, the trustees, and the local registration of the county where the NGO's registered office is situated.

Documents Required for NGO Registration and Eligibility Criteria

If an NGO is to be formed as just a private limited company, there must be a minimum of two directors. A minimum of three directors are necessary to form a public limited company. Two hundred members is the maximum allowed for a private limited business. For a public limited company, there is no member cap. If registering as a simple NGO, there is no cost.

The following are the requirements for NGO registration:

  • (Voter ID, Aadhar card, etc.) as proof of identification
  • Passport (required) (mandatory)
  • Proof of residency (bills for electricity, telephone, mobile phones, or banks)
  • Proof of Registered Office Address
  • Documents proving ownership, such as a NOC, sale deed, and house tax receipt
  • Two or more shareholders
  • At least two directors
  • Directors and Shareholders may be the same people
  • There should be at least one member who resides in India
  • There is no prerequisite amount of capital
  • Income Tax PAN (mandatory)

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NGO Registration Forms:

Here are some NGO registration form number along with its specific use:

Form Number

Description

INC-1

Registering an NGO name

INC-12

Applying for an NGO licence

INC-13

An association memorandum

INC-15

Signing the document

INC 7

NGO Incorporation Application Form

INC-22

Address of Registered Office Form

DIR:2

Advisory Board approval

DIR 3

Request for a DIN from the ROC

DIR 12

NGO Directors Appointment

Benefits of Registering an NGO in India

Below given are some of the benefits of registering an NGO in India:

  • When an NGO registers, it gains legal standing and is given financial accountability. 
  • For instance, the money given to a charitable trust is accepted in its name and applied to its objectives. 
  • Assets from an unregistered firm may be obtained under anyone's name and used to one person's advantage. 
  • Our society's legal, social, and ethical norms are strengthened through NGO registration. 
  • The NGO must have a bank account in its name to function. 
  • A Trust, Society, or Section 8 Company should be registered to open an account. 
  • An NGO should register with Income Tax Authority to be eligible for tax exemption.

Conclusion:

NGO registration is a simple process and can be done over the web. All necessary paperwork, including the MOA and bylaws, must be submitted for the registration procedure. Although trust & society NGOs are registered with the Registrar, only section 8 companies can access the online NGO Registration tool. 

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FAQs

Q: How can I set up an NGO as a section 8 business?

Ans:

The applicant must follow the processes below to register an NGO as a Section 8 Company:

The first step is to apply for a digital signature certificate. The signature is attached to electronic forms using DSC. The Section 8 Company's name reservation process is comparable to that of other companies.

Q: In India, is it feasible to register an NGO?

Ans:

Yes, it is feasible to register an NGO in India. As Trusts, NGOs can be registered under the Indian Trusts Act, 1982. As societies and companies, NGOs can be registered under Societies Registration Act, 1860 and the Companies Act, 2013, respectively.

Q: How to start an NGO?

Ans:

In addition to having the desire to contribute to society's well-being, legislative requirements must be met, including the following:

  • Establish your NGO's mission first, which refers to the subject you want to champion.
  • Create a governing board to oversee the efficient operation of the NGO.
  • Lastly, register an NGO with the appropriate government agencies

Q: What are the various types of NGO registration?

Ans:

The procedures for registering nonprofit organisations vary depending on whether they are a trust, society, or nonprofit corporation. Some various restrictions and regulations apply to both registrations of nonprofit organisations and for-profit organisations.

Q: How can I register an NGO in India?

Ans:

You would have to choose a name first and check if it has already been registered. One can proceed to apply with Registrar for a Certificate of Incorporation if the chosen name isn't already used. You can register your NGO as a society, company, or trust. The procedure for each is mentioned above.

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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.