Trust (NGO) Registration

What is NGO?

NGO or Non Governmental Organizations are a non-profit organization that is incorporated to support the underprivileged section of the society. It works for the advancement of different issues like social, cultural, legal, environmental, art, science, etc. As the name Non-Government Organization suggests, they are operated by citizens on voluntary initiatives without any interference from central or state governments.

What is the Need for NGO Registration?

You are recommended to get the NGO Registration done if you are willing to establish a non-profit organization and work with an objective towards the betterment or advancement of any particular section of the society. Getting NGO Registration provides legal authority to the entity and makes it more credible in the eyes of the law and contributors.

In India one can go for NGO registration in three legally possible ways;

• Trust registration, regulated under The Indian trusts Act, 1882
• Society registration supervised under Societies Registration Act, 1860
• Section 8 Company registration governed under Companies Act, 2013

As all three NGO models are regulated by separate acts there are many distinct features of every model. One can choose a working model based on their personal requirement and preference, along with scale and diversity of operations. We will discuss this in detail in this article to ensure some clarity for you.

What is the NGO Registration Procedure in India?

Here, we have provided a glimpse of the registration procedure for NGO all the available legal entities.

Trust Registration Procedure in India

As per Indian trust Act following are the minimum requirement as a Trust in India;

• Clarity as to for what purpose it is created
• Intention to create a Trust
• Clear definition of the beneficiary
• Trust property assigned by the assignee

Section 8 Company Registration Procedure in India

If you are planning for registering a NGO in the form of a Section 8 Company, then there are certain additional formalities that are required to be met with. Following steps are involved in the form of a Section 8 Company:

• STEP 1:

  Choose an apt name for your NGO and make sure that it does not resemble any already registered company or Limited Liability Partnership. This proposed named must be filed for reservation through Reserve Unique Name facility available on the MCA portal. Maximum 2 names can be filed through in one go.

• STEP 2:

  Once name is approved you are required to prepare the MOA and AOA of the organization along some other required documents like projected Profit and loss statement, statement of assets and liabilities, brief description of work etc.

• STEP 3:

  File incorporation application in SPICe Form along with the required document as attachments.

• STEP 4:

  After proper verification of the application Certificate of Incorporation (COI) and License will be issued. This COI will contain the Company Identification Number (CIN) along with Company’s PAN & TAN number.

Documents Required for Section 8 Company Registration

• PAN and ID proofs (Passport, driving license, Voter ID) of all the promoters/directors
• Any of the following Address proof ; telephone bill, electricity bill bank Statement
• Passport size photographs of all the promoters/directors
• Rent agreement in case the office is situated in a rented building
• NOC from the owner of the office
• Utility bills of the registered office
• Details of the directors in other company, if any

What are the Factors Influencing the Choice of Model for NGO Registration

In current world many good Samaritans are realizing the need and value of upliftment of underprivileged and recognition of other important social causes. With an intention to help large section of society is engaging in social causes and plans to set up nonprofit organizations.

In the process of NGO registration, the first crucial decision among many is to choose the type of model among trust, society and Section 8 Company. As we have discussed earlier, there are multiple options available and one is required to narrow down their choice. This choice is influenced by many factors which we will discuss in brief here.

Following factors play a vital role in choosing the legal status for NGO:

• What’s your Orientation?

  Apart from the fact that NGO is done for charitable purpose one has to clearly define the purpose or vision of the organization. The vision also influenced the choice.

• Level of Operation

  Another crucial factor will be the operational level of the intended organization. The scale of operation is important point of consideration. Therefore, if the area of operation will be regional, state-level, national etc. must be decided beforehand.

• Structure of the organization

  Structure of the organization is also being determined before initiating NGO registration. If the contributors are different from the actual management then Section 8 Company is a better option from a society and vice versa.

• Compliance Requirements

  Before making a final decision regarding NGO it is required that one must consider all the compliance requirements for different types of set up. As in case of Section 8 Company annual compliances under Companies Act, 2013 are a mandatory requirement, Trust and Society do have any such annual compliance requirements.

Documents Required for Trust Registration