In India, anyone can do social activities. Every person are free to help the society for its development even without forming an association or organization. But if an individual wishes to create a group who wants to be involved in social activities, and resources, then it is important to make it in a proper manner with an organised management. NGO or Trust is one of such kinds.
NGO is otherwise known as “Non-Governmental Organization” means that it is not controlled by the government. A non-governmental organization (NGO) or trust is a legally formed organization which operates independently and it is a non-profit business.
Acts controlling NGO registration process
The national authority of India provides online registration of an NGO under three laws, they are as follows
- Trust under Public Trusts Act of that particular state.
- Society under Societies Registration Act 1860
- Section 8 Company under Companies Act, 2013
Each law of National Authority of India sets the formation of a different type of non-profit organization, such as Trust Registration, Society Registration, and Non-Profit company registration. It is up to the person or group of people who like to start an NGO or Trust have to decide on what kind of registration procedure they have to follow according to their objectives.
How to form the NGO?
NGOs come under the category of organisation which has to be registered for non-profit motive. So registering Trust, Society, Section 25 Company are classified as NGOs.
Society, Trust and NGO
Non-governmental Organization or NGO is a non-profit making organisation which is integrated under the government’s rules and regulations to help common people. There are three types of charitable organisations are functioning in these days such as Society, Trust and Non-profit making company.
As per the rules and regulations, the registration of NGO and Trust is inevitable in order to work under the law. All the charitable organizations which are functioning as NGO’s are registered under Section 25 of the Companies Act. NGO or Trust registration has been developing fast in these days as in India, there are large numbers of people are in need, even for their basic things.
With their long work record for helping needy people in various sectors, . They are as follows:
- National NGO
- International NGO
- Community based NGO
- City based NGO
NGO Registration process
In India, the role of an NGO has been faultless. The registration process of NGO should follow the rules and regulations of the Indian Companies Act. Being a legal entity, the NGO should work for general mass with non-profit motivation or expectation from their inception. The registration procedures and rules and regulations for Trust, Society and Company are different from each other respectively. If anyone wants to register a trust, then two trustees are must as per the Trust act. From that, one of the trustees should apply with referring to the name of the trust, in order to process the registration procedures without any issues. The process of registration is done by the members of the Trust or NGO.
To register a Society or NGO, the person needs to be registered under Section 20 of Societies Act 1860. And minimum of seven committee members are needed for the registration process of a Society. The registration procedure can take place at state and district level depending on the requirements and location of Society or NGO
Requirements of NGO Registrations
Under Societies Registration Act, 1860, a minimum of seven or more members are needed to form a trust or NGO and minimum of eight people from seven different states are required as promoters to form a national level Society or Trust or NGO.
One among the promoters must be the authorised person and that person has to register the Trust or NGO with preferred three alternatives names for the NGO or Trust. The name of the NGO is finalised by the registrar after verifying the preferred names with other already registered NGO names. Any Individuals, partnership firms, companies and registered societies are qualified to form a Trust or NGO.
There are two important documents required for the registration process of NGO, they are
- Memorandum of Association
- Rules and Regulations
The Memorandum of Association should contain name, area of operation, registered office, objectives, name of members and names of promoters. The Rules and Regulations should have all the aims and objectives of the Trust or NGO which would govern the functioning of the proposed Trust. It holds 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 Society if needed, and other basic rules required to manage the Trust or NGO.
All the pages of well-drafted Rules and Regulations and Memorandum of the proposed Trust or NGO should be signed by the promoters. And also it is important that the memorandum and Rules and Regulations should be witnessed and attested by Oath Commissioner / Gazetted Officer / Notary Public / Advocate / First Clean Magistrate / Chartered Accountant / has to be prepared and kept ready for the registration process.
The following documents are required for the registration process of NGO or Trust:
- Covering letter signed by the authorized person.
- Two copies of Memorandum of Association.
- Two sets of Rules and Regulations/Bye-laws.
- An affidavit of the President/Secretary on a non-judicial stamp paper of prescribed value, expressing the relationship between the subscribers and the promoters, duly attested by a First Class Magistrate or by an Oath Commissioner/Notary Public
- Proof of registered office, no objection letter or rent receipt from the landlord.
- Authority duty signed by all members of the management
- Declaration by all the members of the management that the monetary funds of the Trust or NGO shall be used only for the promoting purpose of the aims and objectives of the Trust or NGO.
If the registrar is completely satisfied with the documents submitted, from Memorandum and Rules and Regulations to all the supportive documents, then he requires the applicant with documents filed and the applicant to deposit the registration fee. On completing all the necessary formalities, the Registrar issues a certificate of registration and certified copies of the Memorandum and Rules & Regulations to the concerned person.