A Non Governmental Organization (NGO) is an organization of certain individuals who have come together to work for a cause with a non-profit motive. If you wish to start a NGO in India you need to get it registered either as a charitable trust or as a society registered under the societies registration act or as a company licensed under section 25 of the companies act.
How to Start an NGO in India?
Procedure for Trust Formation
Trust is defined as an obligation annexed to the ownership of property. It comes from confidence reposed in and accepted by the owner. It requires a declaration by him to work with objectives for the benefit of another, or of another and the owner.
Creating a trust generally requires the following:
- The name(s) of the author(s)/settler(s) of the trust
- The name(s) of the trustee(s)
- The name(s) if any, of the beneficiary/ies or whether it shall be the public at large
- The name of the trust
- The places where it’s main and other offices shall be situated
- The property that shall devolve upon the trustee(s) under the trust for the benefit of the beneficiaries
- An intention to divest the trust property upon the trustee(s)
- The objects of the trust
- The method of appointment, removal or replacement of a trustee, their rights, duties and powers etc.
- The rights and duties of the beneficiaries
- The method of determination of the trust
However if you wish to form a charitable trust, you are not required to obtain registration under the Indian Registration Act.
Procedure for Society Formation and Registration
A society comprises individuals who have come together by mutual consent to deliberate, plan and act together for a common objective. If you wish to form a society you need to have minimum seven persons. All of them must be eligible to enter into a contract to form a society. If you want to have a NGO as a society, it must be registered under the Societies Registration Act, 1860.
Forming a society requires more procedural formalities than in the case of a trust. For its inception a society requires
- Memorandum of Association
- Rules and Regulations
While registering, the following documents are to be filed with the registrar of societies
- You need to send a cover letter requesting for registration of the society. The letter needs to state the various documents annexed to it. All the subscribers to the memorandum need to sign the letter. A person duly authorized by all of them to sign on their behalf is also permissible.
- Memorandum of Association, in duplicate neatly typed and pages serially numbered.
- Rules and Regulations/Bye-Laws, in duplicate, certified by at least three members of the governing body
- An affidavit of the president or secretary of the society on a non-judicial stamp paper has to be duly submitted. It needs to state the relationship between the subscribers. This has to be duly attested by an oath commissioner, notary public or 1st class magistrate.
- Documentary proof like house tax receipt, rent receipt of premises shown as registered office of the society has to be submitted. A no objection certificate from the landlord of the premises is also needed.
- An authority duly signed by all members of the managing committee.
- A declaration by the members, that the funds of the society shall be used for furthering the aims and objects of the society only.
Procedure for Company Formation Under Section 25 of the Companies Act
Under Section 25 of the company’s act, an association can be formed:
- For promoting art, commerce, science, religion, charity or any other useful purpose
- If it plans to apply its profits or other income for promoting its objects
- If it agrees not to pay any dividend to its members
If you fulfill all these formalities the registrar will issue a certificate of incorporation from which date the company comes into existence. Your company, in that case, need not incorporate the word “Limited” or “Private Limited”.