In India, anyone can do social activities. Every person is free to help society’s development even without forming an association or organization. But suppose an individual wishes to create a group that wants to be involved in social activities and resources. In that case, it is essential to do so in a proper manner with organised management. NGO Trust is one such organization. According to the World Bank, there are essentially two types of NGOs: operational and advocacy. Operational NGOs focus on development projects, while advocacy NGOs focus on promoting specific causes.
Trust is registered under the state laws. It is recommended for small charitable activities. A Trust is an organization registered with limited members. In general, the Trusts are incorporated by offering property for a charitable purpose. A nonprofit company must have at least three incorporators and three directors, and may be registered with or without members. A nonprofit company is not required to have members. A trust is basically a right to specific property, which is held by a fiduciary for the benefit of another individual. A trustee, on the other hand, is a party or parties designated as a holder of the property, charged with the duty of administering the Trust at the appropriate time.
Trust registration is mandatory for every individual forming a trust. Package inclusions: Advice on the trust registration procedure. Advice on securing 12A and 80G registration under the Income Tax Act, 1961. A trust may be created by: Every person who is competent to contract: This includes an individual, AOP, HUF, company, etc. If a trust is to be created on behalf of a minor, then permission from the Principal Civil Court of original jurisdiction is required.
NGOs can operate businesses initially, and some profit is acceptable, even legally, in most countries. However, if the NGOs start making excessive profits out of their services, it is only then that other people begin questioning. NGOs can accept donations from private individuals, for-profit companies, charitable foundations, and governments, whether local, state, federal, or even foreign nonprofit entities. They can also charge membership dues and sell goods and services. A minimum of two people are required for Section 8 company incorporation, and at least three people are required for Trust and Society registration.
There are three ways to register NGOs in India: society registration, Trust registration, and Section 8 Company registration. An NGO, otherwise known as a Non-Governmental Organization (NGO), means that the government does not control it. A non-governmental organization (NGO) Trust is a legally formed organization that operates independently and is a nonprofit organization
- p 1: Complete our NGO Registration Form
- Step 2: Gather the Prerequisites details
- Step 3: We will compile a trust deed
- Step 4: Register Deed Registration
- Step 5: Your Trust NGO is now registered
Acts controlling the GO registration process
Go to the local Registrar and submit a trust deed along with a photocopy for registration. A photocopy of the deed must also contain the settler’s signature on all pages. At the time of registration, the settler and two witnesses must be present in person, along with proof of their identity in the original. Isa transfer of property by the owner to another for the benefit of a third person, along with or without himself, or a declaration by the owner to hold the property not for himself and another.
The national authority of India provides NGO registration online under three laws, which are as follows.
- Trust under the Public Trusts Act of that particular state.
- Society under Societies Registration Act 1860
- Section 8 Company under the Companies Act, 2013
Each law of the National Authority of India establishes the formation of a different type of nonprofit organization, such as a Trust, Society, or a Nonprofit company registration. A group of people who would like to start an NGO or Trust decides what registration procedure they have to follow according to their objectives.
How to form an NGO?
NGOs are organisations that have to be registered as nonprofits. Registering a nonprofit company 25 Company is classified as an NGO; registering a Section 8 company is classified as a Company. The registration fee is Rs. 4,999. The total cost of trust registration, including government and professional fees, is Rs. 13,999.
Society, Trust, and NGO
A non-governmental organization (NGO) is a nonprofit organization that integrates nonprofit regulations to help ordinary people. Today, various types of charitable organizations function, such as societies, trusts, and nonprofit companies. Lestration of NGOs and trusts is essential in order to work under the law. Philanthropic organizations that function as NGOs are registered under Section 25 of the Companies Act. O and trust registration have been developing fast these days, as in India, there are large numbers of people in need, even for their basic needs.
With their long work record for helping needy people in various sectors, they are as follows:
- National NGO
- International NGO
- CCommunity-basedNGO
- CCity-basedNGO
NGO Registration Process
In India, the role of an NGO has been faultless. The registration process of an NGO should follow the rules and regulations of the Indian Companies Act. As an Ing entity, the NGO should work for the general public, with nonprofit or for-profit motivation or expectation from its inception. Nonprofit information procedures, rules, and regulations for Trust, Society, and Company are different from each other. Any person who registers a trust must have trustees mentioned in the Trust Act. One of the trustees should apply by referring to the name of the TruTrust order to process the registration procedures without issues. The members of the Trustor NGO do the registration process.
To register a Society or NGO, a person needs to be registered under Section 20 of the Societies Act 1860. A minimum of seven committee members are required for the registration process. The registration procedure can take place at the state and federal levels, depending on the requirements and location of the Society or NGO. The total cost of registration, including government and professional fees, would be Rs. 13,999. The society registration, including government and professional fees, would be Rs. 12,999.
Requirements of NGO Registrations
Under the Societies Registration Act, 1860, a trust or NGO needs a minimum of seven members, and a minimum of eight people from seven different states are required as promoters to form a national-level Society, Trust, or NGO.
One among the promoters must be the authorised person; a trust or NGO has to register the Trust or NGO with three preferred alternative names for the NGO or Trust. e regisTherar finalizes the name of the N, combining the preferred names with other already registered NGO names. Individual partnership firms, companies, and registered societies are qualified to form a Trust or NGO.
There are two essential documents required for the registration process of Nan GO: they are
- Memorandum of Association
- Rules and Regulations
The Memorandum of Association should contain a name, area of operation, registered office, objectives, names of members, and names of promoters. e Rules and Regulations should have all the aims and objectives of the Trust or NGO which would govern the functioning of the proposeproposed Trustslds the details of membership, meetings, powers and responsibilities of office-bearers, operation of bank account, termination of membership, quorum of meetings, and financial year, procedure of dissolution or merger of SociSocietiesd other basic rules required to manage the Trust or NGO.
The promoters should sign all the pages of the well-drafted Rules and Regulations and Memorandum of the proposed Trust or NGO. is also essential that the memorandum and Rules and Regulations be witnessed and attested by an Oath Commissioner / a Gazetted Officer / a Notary Public / an Advocate / a First Class Magistrate / a Chartered Accountant / and prepared and kept ready for the registration process.
Documents Required for NGO Registration
Given below are the documents required for the registration of a Non-Governmental Organisation
- Identity Proof (Voter ID/ Aadhar Card, etc).
- Passport (mandatory)
- Proof of residence ( Electricity/ Telephone/ Mobile Bill or Bank Statement).
- Registered Office Address Proof (Rent agreement if the company does not own the premises).
- Documents claiming ownership, such as a Sale Deed or a House Tax receipt, along with a NOC.
- At least two shareholders
- Minimum of two directors
- Shareholders and Directors could be the same.
- At least one Director should be an Indian resident
- There is no minimum capital required.
- Income tax PAN (mandatory)
Documents required for Section 8 Incorporation
The following are the documents required for Section eight company registration:
- Director Identification Number (DIN) :
- Digital Signature Certificate of Director (DSC)
- Approved Name
- Memorandum of Association & Articles of Association
- INC-12
- Proof of ownership (rent agreement/ lease deed)
- The electricity bill, which should not be older than 2 months
- NOC from the landlord or the owner
- DIR-12 (appointment of Directors)
- Consent to be directors, i.e., DIR-2
- An affidavit from the Directors for not accepting deposits
- INC-9, which is the declaration of each subscriber to MO
Suppose the Registrar is completely satisfied with the documents submitted, from the Memorandum and Rules and Regulations to all the supportive documents. That can be seen by the fact that he requires the applicant to file the papers and pay the registration fee. Completing the necessary formalities, the Registrar registers the certificate and certified copies of the Memorandum and Rules &and regulations to the concerned person.
