NGO Registration in India
A Non Governmental Organization is perceived to be a body of individuals or an association of
persons. An association of persons with non-profit motive may be registered under any of the
following Indian Acts:
AS A CHARITABLE TRUST
The public charitable trust is a potential form of not-for-profit entity in India. Normally,
public charitable trusts can be established for a number of purposes, including the relief
of poverty, education, medical relief, provision of facilities for recreation, and any other
object of general public utility. Indian public trusts are usually irrevocable. No national
law governs public charitable trusts in India, although many states (particularly
Maharashtra, Rajasthan, Gujarat and Madhya Pradesh) have Public Trusts Acts.
A Trust can be created by any person competent to contract or even by a manner with the
authority of a competent court and respect of any property which is transferable and over
which the author of the trust has dispossessing power.
A Trust may be private and public. When the purpose of the trust is to benefit an individual
or a group of individuals or his or their descendants for any legal person and who is
capable of holding property, it is a private trust. When the purpose of the trust is to the
benefit the public or any section of the public, it is public trust.
A trustee can be any person that is, an individual or a corporate body or a corporate sole,
capable of holding property and competent to contract and he must accept the trust.
AS A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT
Societies are membership organizations, which may be registered for charitable purposes.
Societies are generally managed by a governing council or a managing committee. Societies
are governed by the Societies Registration Act 1860, which has been adapted by different
NGO OR SOCIETY: There is two type of Society and NGO's in India - State label and All
India label. Before registering the NGO or Society you should know about the difference
between both of them.
STATE LABEL : To register the Society or NGO at State Label. You will have to provide
the ID proof of Seven Member's (DL | Copy of Passport | Voter ID). You will have to provide
Two Members (President - Treasurer or Secretary - Treasurer) form Delhi and another Five
Member's can be from any states. Two set of MOA of NGO or Society.
ALL INDIA LABEL : To register the Society or NGO at all India Label. You will have to
provide the ID proof of Nine Member's (DL | Copy of Passport | Voter ID). You will have to
provide Two Members (President - Treasurer or Secretary - Treasurer) form Delhi and another
seven Member's from Seven different states. Two set of MOA of NGO or Society.
AS A COMPANY LICENSED UNDER SECTION 25 OF THE COMPANIES ACT
A section 25 company is a company with limited liability that may be formed for "promoting
commerce, science, art, religion, charity or any other useful object," provided that no
profits, if any, or other income derived through promoting the company's objects may be
distributed in any form to its members. The Indian Companies Act, 1956, which principally
governs for-profit entities, permits certain companies to obtain not-for-profit status as
"section 25 companies." A section 25 company may be formed for "promoting commerce, art,
science, religion, charity or any other useful object." A section 25 company must apply its
profits, if any, or other income to the promotion of its objects, and may not pay a dividend
to its members. At least three individuals are required to form a section 25 company. The
founders or promoters of a section 25 company must submit application materials to the
Regional Director of the Company Law Board. The application must include copies of the
memorandum and articles of association of the proposed company, as well as a number of other
documents, including a statement of assets and a brief description of the work proposed to
be done upon registration.
Objectives of a Non-Profit company
Objectives of a non-profit company can be including promotion of commerce, art, science,
religion, charity or any other useful object. Profits are applied for promoting only the
objects of the company and no dividend is paid to its members. (Section 25 (1) (a) and (b)
of the Companies Act, 2013). A non-profit company may be Public or Private. If the
non-profit company is a private company, minimum of only two members are required to form
it. However, if the non-profit from is for a public purpose, then a minimum of seven are
needed. A 'Section 25 company' and is eligible for certain exemption from provisions of law
and concessional rate of fees etc.
Steps for establishing a section 25 company
- Application for a name
- Memorandum and Articles
- License under section 25
- Registration with ROC
Register the NGO
THE NGO'S NAME: Check to see if the proposed name of the organisation is already in
use. Check with the local government registry or similar agency/board to see if your
proposed name is already taken. It may be necessary to provide two or three optional names
for the NGO! This also applies to the logo of the NGO, if you plan to use one.
REGISTERING OR INCORPORATING WITH THE LOCAL AUTHORITY: It will be necessary to
incorporate the organisation within its given local government/agency by writing and filing
the necessary forms. In larger cities and towns in India, there could be and normally are
separate authorities for registrations of Societies (Registrar of Co-operative Societies,
trust (Charity Commissioner) and Companies (Registrar of Companies). However, in smaller
towns and district headquarters, there could just be one Registrar who is common for all of
these duties. So you will need to find out the local authority responsible for registration
of your type of organisation at your location.
In most other countries also, there are specialized departments or officers within local
governments that deal with registering an NGO (which may also be called by other different
names: non-profit organisation, voluntary organisation, people's organisation, etc.)
There are several documents that need to be submitted, and these differ from country to
country and also on the type of organisation. Information on the NGO Board, its mission
statement, purpose, programmes and projects information, staff members, funding sources etc.
will be necessary in all cases, whatever the type of organisation.
A typical set of documents to be submitted to the appropriate authority for registering an
NGO includes - Memorandum of Association, Bye-laws or Trust Deed, including applicable rules
and regulations; report of annual activities, financial reports/audit reports; sources and
pattern of income and expenditure; minutes of the Board or General meeting of members that
endorses the setting up of the NGO; funding sources, letters of support etc. .
While it is critical that a new NGO ensures that it is properly registered with the public
authorities of the country, it is of even more importance to 'register' with its target
community - in terms of ensuring acceptability, building trust, chalking out effective
programmes and projects and being the harbingers of real and measurable change.
What Rajput Jain & Associates Offers
Rajput Jain & associates assist in NGO registration procedures of Societies and Trusts as
well as in the process of formation of memorandum of association (MOA). We guide them
through the modes and methods, procedural formalities and the process of documentation. We
also counsel them regarding the benchmark required for registration. Rajput Jain &
associates provide services regarding all facets of NGO working right from registration to
utilisation of funds etc. Moreover, we provide solutions regarding income tax, statutory and
internal audit and many more services are offered by us.
Rajput Jain & Associates is pioneer management consultants rendering A to Z services to NGOs.
Civil Society Organisations and host of corporate and charitable institutions. It provides
single window services for all registration under Trust, Society, 80-G, 12A, FCRA, 35AC,
Section 35(1)(ii), Section 35(1)(iii) etc and NGOs, from conceptualization to fund-raising,
project implementation to institution building, legal requirements to compliance services,
Income Tax Services, Statutory Audit Services, FCRA compliance & FC3 returns, Internal
Audit, Accounts Outsourcing Services etc.