A Non-Governmental Organization (NGO) is a not for profit organization formed by a group of individuals, voluntarily, with the motive for working for a charitable and social cause.
Choose the right kind of entity.
It can be started as a trust, society or a Section 8 Company.
Exemption under Income Tax is also available for all non-profit NGOs.
Trust: One of the most common and simplest ways in which an NGO can be registered is Trust. Trust is a legal entity created by the “settlor” who transfers the assets to the second party or “trustee” for the benefit of the third party known as “beneficiary”. Trusts are registered to support the underprivileged and deprived sections of the society. Any group of individuals ca register a trust.
Societies: A society is an entity that can be created by an association of individuals united in their cause for promoting science, arts, literature, social welfare and useful information. Societies are governed by the Societies Registration Act, 1860. They must be registered with the respective state Registrar of Societies to be eligible for tax exemption.
Section 8 Companies: The objectives of a Section 8 Companies are to promote arts, science, commerce, sports, social welfare, religion, charity and environmental protection. They are registered under the Companies Act, 2013 for charitable purpose. They have better credibility among government bodies, donors and other stakeholders.
Essential documents for online society registration & trust registration: Before a registered deed is delivered to an NGO, submission of specific documents is required.
For the trust registration, the following documents are mandatory
A bill of electricity or water stating the address that needs to be registered.
The identity proof of at least two members of the company. The proof can be: Voter ID
Once the payment for the registration is done, it takes about 8 to 10 days for online registration to be completed under the Indian Trust Act – 1882. Before the deed becomes valid throughout the country, the settler has to deliver a presentation at the registrar’s office.
Note: On the scheduled date for registration, the Author of the Trust shall be present in the Register Office for registration
The name of the society.
Address proof of the office.
Identity proof of all the nine members which can be.
Copy of Passport.
Two copies of the Memorandum of Association and By-laws of the society.
Note:Once the payment for the registration is done, it takes about 8 to 10 days for drafting the MoA and By-laws of the Society. Thereafter it takes 21 to 30 days for the Society to be registered.
The name of the Company for approval.
Address proof of the office. It can be electricity or water bill or house tax receipt.
Identity proof of all the Directors which can be: Driving License.
Copy of Passport.
Aadhaar card The Memorandum of Association and Articles of Association of the Company.
Note:Once the payment for the registration is done, it takes about 8 to 10 days for drafting the MoA and AoA of the Society. Thereafter it takes about 15-25 days for the entire Company registration to be completed.