Overview of NGO Registration in India
Non-Governmental Organisations (NGOs) play a crucial role in addressing social, economic, and environmental challenges in India. They operate independently from the government and work towards public welfare through various initiatives such as education, healthcare, and community development.
Registering an NGO provides legal recognition, enhances credibility, and enables access to funding, tax exemptions, and government support.
What is an NGO
Definition
An NGO, or Non-Governmental Organisation, is a voluntary, non-profit group or institution that operates independently from the government. NGOs in India often work in sectors such as education, healthcare, environmental protection, rural development, and advocacy. NGOs don’t earn profits, but they can generate revenue through activities, grants, and donations, which must be reinvested in their objectives.
Key Features
- Non-profit objective
- Independent operation
- Public welfare focus
- Eligibility for grants and donations
- Structured governance
Types of NGO Registration in India
NGOs in India can be registered under three legal structures:
Trust
- It is the Indian Trusts Act, 1882 (for private trusts) or the respective state trust laws (for public trusts). It is suitable for Charitable institutions, religious organizations, and public welfare activities.
Society
- It is governed by the Societies Registration Act, 1860. It is suitable for Literary, cultural, scientific, and charitable organizations.
Section 8 Company
- Under the Companies Act, 2013, it is suitable for Organizations that aim to promote commerce, art, science, education, sports, and charitable purposes.
Difference Between a Trust, Society and a Section 8 Company
|
Particulars |
Trust |
Society |
Section 8 Company |
|
Governing Law |
Indian Trusts Act, 1882 (Private Trusts) or state-specific Trust Acts (Public Trusts) |
Societies Registration Act, 1860 and State Amendments |
Companies Act, 2013 |
|
Registration Authority |
Sub-Registrar of Assurances |
Registrar of Societies |
Registrar of Companies (ROC), Ministry of Corporate Affairs |
|
Legal Structure |
Irrevocable arrangement between the settlor and the trustees |
A membership-based organization formed for a common cause |
Incorporated non-profit company with limited liability |
|
Purpose |
The main purpose is religious or philanthropic activities |
The main purpose is the promotion of literature, science, fine arts, charity, etc. |
The main purpose is the promotion of commerce, art, science, education, charity, etc. |
|
Minimum Members Required |
Minimum two trustees (no upper limit) |
Minimum seven members (for state-level); 8 from different states (for national-level) |
Minimum two members and 2 directors (can be the same individuals) |
|
Formation Document |
Trust Deed |
Memorandum of Association (MOA) and Rules & Regulations |
MOA and Articles of Association (AOA) |
|
Legal Status |
Not a separate legal entity |
Not a separate legal entity |
Separate legal entity (distinct from members) |
|
Geographical Reach |
State-specific, unless registered in multiple states |
Can operate across India with proper registration |
National and international recognition. |
|
Management Structure |
Managed by Trustees (appointed in the deed) |
Managed by the Governing Body or the Managing Committee |
Managed by the Board of Directors |
|
Ideal For |
Religious, educational, or medical institutions |
Educational, cultural, and welfare groups |
NGOs seeking credibility, foreign funding, and government grants |
|
FCRA Eligibility |
Eligible after registration and 3 years of operation |
Eligible after 3 years of existence and compliance |
Eligible after 3 years or via the prior permission route |
Benefits of NGO Registration
Registering your NGO has the following benefits:
1. Legal Identity and Protection:
- A registered NGO is a legal entity that can own property, open bank accounts, enter into contracts, and be a party to legal proceedings.
2. Credibility and Public Trust:
- When an NGO is formally registered, it builds trust among donors, beneficiaries, corporate sponsors, and government agencies. People are more likely to donate to or associate with an organization that has proper documentation and is subject to a regulatory framework.
3. Eligibility for Tax Exemptions:
- Registered NGOs can apply for tax exemptions under 80G and 12A Registration under the Income Tax Act, 1961.
4. Access to Government Schemes and CSR Funds:
- Only registered NGOs can receive grants from the government or apply for schemes designed for charitable organisations. Additionally, under the Companies Act, 2013, corporations are mandated to spend a portion of their profits on CSR activities.
5. Eligibility for Foreign Contributions (FCRA):
- To receive donations from abroad, an NGO must be registered under the Foreign Contribution Regulation Act (FCRA), which is only possible after the NGO has been formally registered.
6. Continuity:
- A registered NGO is seen as a perpetual legal entity. It can continue to function regardless of changes in its management or founding members.
7. Operational Transparency and Governance:
- Registered NGOs are required to maintain financial records, conduct regular board meetings, and file annual reports.
Government Schemes for Registered NGOs
Registered NGOs in India can access various government schemes and funding opportunities across multiple sectors. These schemes support social initiatives, capacity building, and community development.
Key Government Platforms and Schemes
1. NGO Darpan (NITI Aayog):
- It is a mandatory online portal where NGOs register to receive grants from Central Ministries and gain a unique ID for transparency.
2. Ministry of Women & Child Development:
- Funds NGOs for shelter homes, anti-trafficking, and child welfare programs under schemes like Swadhar Greh and Ujjawala.
3. Ministry of Social Justice & Empowerment:
- It offers grants for old-age homes, SC hostels, and rehabilitation centres for socially disadvantaged and substance-dependent groups.
4. Ministry of Health & Family Welfare:
- It supports NGOs running health camps, awareness drives, and HIV/AIDS programs through partnerships like NACO.
5. Ministry of Rural Development:
- Involves NGOs in self-help group training, rural employment audits, and housing scheme monitoring under NRLM and MGNREGA.
6. Ministry of Environment & Forests:
- Grants NGOs for awareness campaigns, afforestation, and climate change initiatives under programs like NEAC.
7. Department of Empowerment of Persons with Disabilities:
- Supports NGOs through schemes like DDRS and ADIP for special education, rehabilitation, and assistive devices.
8. CSR via MCA21 Portal:
- NGOs registered under eligible laws can receive CSR funding by partnering with companies and registering on the MCA portal.
9. CAPART (MoRD):
- Funds NGOs promoting rural technology, income generation, and sustainable village development through project-based support.
10. State-Level NGO Schemes:
- Individual states offer grants to NGOs for local welfare projects in health, education, de-addiction, and women's care.
Pre-Requisites Before Registering an NGO
Before initiating the registration process, it is important to clearly define the foundation and operational structure of the NGO.
Basic Requirements
- The objective or cause of the NGO
- The type of legal entity suited to their vision.
- Founding members and their roles.
- Registered address for official correspondence.
- Name approval
Documents Required for NGO Registration
Common Documents
- Identity proof (Aadhar, PAN, Passport, Voter ID)
- Address proof (Electricity bill, rent agreement, NOC from landlord)
- Passport-size photographs
- Signed MOA or Trust Deed
For Section 8 Company
- DSC and DIN for all directors
- Declaration of charitable objects
- Utility bill for the office address
- NOC from the property owner
Forms Required for NGO Registration
|
Type of NGO |
Governing Law |
Forms Required |
|
Trust |
Indian Trusts Act, 1882 / State Trust Acts |
|
|
Society |
Societies Registration Act, 1860 |
|
|
Section 8 Company |
Companies Act, 2013 |
|
NGO Registration Process in India
Choose Legal Structure
The first step is to choose whether you want to register your NGO as:
- Trust
- Society
- Section 8 Company under the Companies Act, 2013
Name Approval
Choose a name for your NGO and ensure that it is not already in existence. Also, the name should not infringe on any trademark and should not be against the National and Public Policy of the Emblems Act, 1950.
Assemble the Formation Team
A minimum number of trustees is required for a trust, a minimum of seven members for a society, and at least two directors (private) or three (public) for a Section 8 company.
Draft Your Governing Document
- Trust: Trust Deed stating trustees, objectives, powers, duration.
- Society: Memorandum of Association and Rules & Regulations.
- Section 8: MoA and Articles of Association, spelling out non-profit aims, membership, and governance.
File Your Application
- Trust: Submit the trust deed and affidavits to the local sub-registrar; pay the stamp duty.
- Society: Lodge Form I (or state-specific equivalent), MOA, by-laws, and affidavits with the Registrar of Societies.
- Section 8 Company:
1. e-MOA (Form INC-13)
2. e-AOA (Form INC-31)
1. Declaration by subscriber(s) (Form INC-15)
2. Declaration by professional (CA/CS/CMA) — Form INC-14
3. Consent to act as director — Form DIR-2
- Obtain DSC & DIN for all proposed directors.
- Name Reservation: File SPICe+ Part A on the MCA portal to reserve your NGO's name.
- Incorporation + Licence Application, switch to SPICe+ Part B, and attach the following:
- License application (Form INC-12) under Section 8
- Declaration by directors/subscribers — Form INC-9
Submit & Pay Fees: Pay the statutory ROC filing fees, which are linked to your company's authorised capital.
Obtain Your Certificate
- Trust: Registered Trust Deed with registration number.
- Society: Certificate of Registration and society registration number.
- Section 8: License under Section 8 and Certificate of Incorporation (with CIN)
Compliance Requirements for NGOs in India
After registration, NGOs in India must comply with various legal, financial, and regulatory requirements to maintain their legal status and continue receiving benefits such as tax exemptions and funding.
Income Tax Compliance (12A & 80G)
To avail tax exemptions and donor benefits:
- Apply for 12A Registration to claim income tax exemption
- Apply for 80G Certification to allow donors to claim tax deductions
- File annual Income Tax Returns (ITR-7)
- Maintain proper records of income, expenses, and donations
FCRA Compliance (Foreign Contributions)
If the NGO intends to receive foreign donations:
- Must obtain FCRA Registration under the Foreign Contribution Regulation Act
- Maintain a separate FCRA bank account
- File annual FCRA returns (Form FC-4)
- Ensure proper utilisation and reporting of foreign funds
Annual Filing and Reporting
Depending on the type of NGO:
For Trust
- Maintain books of accounts
- File income tax returns
- Submit annual reports (if required by state authority)
For Society
- File annual list of managing committee members
- Submit financial statements to Registrar of Societies
- Maintain meeting records
For Section 8 Company
- File AOC-4 (financial statements)
- File MGT-7 (annual return)
- Conduct board meetings and maintain minutes
- Maintain statutory registers
CSR Compliance (If Receiving Corporate Funding)
- Must be registered on MCA CSR portal
- Maintain proper utilisation reports
- Ensure funds are used only for approved activities
NGO Darpan Registration
- Mandatory for receiving government grants
- Provides a unique NGO ID
- Required for collaboration with ministries
Accounting and Audit Requirements
- Maintain proper financial records
- Conduct annual audits (mandatory for most NGOs)
- Ensure transparency in fund utilisation
Other Regulatory Compliance
Depending on activities:
- GST Registration (if applicable)
- Professional Tax (state-based)
- Shops & Establishment Registration
- Industry-specific licenses (FSSAI, etc.)
Consequences of Non-Compliance
Failure to comply may result in:
- Cancellation of registration
- Loss of tax exemptions (12A / 80G)
- Suspension of FCRA license
- Financial penalties and legal action
Importance of NGO Compliance
Maintaining compliance ensures:
- Legal continuity of the organisation
- Eligibility for funding and grants
- Transparency and accountability
- Long-term sustainability
Frequently asked questions
You may choose to register as a Trust governed by the Indian Trusts Act or state variants, a Society under the Societies Registration Act, 1860, or a Section 8 Company under the Companies Act, 2013.
No. For a Trust, you need at least two trustees. A Society requires a minimum of seven members. A Section 8 Company mandates at least two directors (for a private company) or three (for a public company).
Yes. After your NGO is registered, you must apply for FCRA registration at its online portal. Usually, FCRA approval comes after three years of stable operations, unless you seek “prior permission” for specific projects.
• Section 12A of the Income Tax Act, 1961, exempts the NGO’s income from tax. • Section 80G of the Income Tax Act, 1961 allows donors to claim a deduction on their taxable income for contributions made. Both registrations are filed online in Form 10A on the Income-tax e-filing portal.
Once you have the Registration Certificate, example, Trust Deed, Society Certificate or Certificate of Incorporation, apply for a PAN for the NGO, then present these documents and a board resolution to your chosen bank to open a current account.
Yes, to access most central government grants, you must register on the NGO Darpan portal (ngodarpan.gov.in) and obtain a unique ID.
• Annual financial audit by a chartered accountant. • Income-tax returns and, if FCRA-registered, FC-3 returns. • ROC annual filings for Section 8 Companies (Form MGT-7, AOC-4). • Society/Trust filings as per state rules (often an annual report). • Regular board or trustee meetings with minutes and resolutions properly recorded.
