NGO or NPO Registrations

Any Organisation working not for profits is termed as NGO or Non GovernmentOrganisation or Non-Profit Organisation. The Primary Objective of theseOrganisationsare welfare to the General Public or to the certain sector or community of the Society or the Nation. Any Organisation which intend to work for social cause not for profit or without any commercial gains, have three options for its Registration:

SOCIETY : To Register as Society under Societies Registration Act, 1860.
TRUST : To Register as Trust under Indian Trust Act, 1882.
COMPANY : To Register as Company under Section 8 of the Companies Act, 2013.

Society Registration

Under Societies Act, 1860 Any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with Registrar of Societies of that District, may themselves register as society.

The following societies may be registered under this Act:-

Charitable societies.
Welfare Organisations
Social Activities Group
Self Help Groups
Medical Dispensaries
And Many more depending upon the structure and objectives

Trust Registration

As per the Indian Trust Act 1882, a Trust is an arrangement where the author/ owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary).

Such a property is transferred by the author/ trustor to the trustee along with a proclamation that the trustee should hold the property for the beneficiaries of the Trust.

Trusts can be classified into two categories:

A. Public Trust

The most preferred way to run an NGO or a non – profit organization is to form a Public Charitable Trust. It is a trust whose beneficiaries include the public at large. Further, a Public Trust can be further be subdivided into Public Charitable Trust and Public Religious Trust. The public trust may also be formed for following objects like To enhance cultural, academic and social condition of the people, work for democracy, good governance, peace, justice and cooperation., Encourage the people to develop a much better society, Work for rehabilitation of beggars in India, To do programs which help in education etc.

B. Private Trust

Biggest features of Trust Registration is that, those who want to involve family members as well in Trust can apply for Trust Registration. Hence, in Private Trust can be for the Purpose of General Public or for the families or individuals.

Process of Registration of a Trust

Minimum no. of members required are:
- Author/ Settlor of the Trust
- Beneficiary
Selection of Name: Select a unique name of your trust, the name should not violate or infringes someone else name or trademark.
Drafting of Deed:
- The next step is to draft a trust deed. The trust deed is to be executed on appropriate non-judicial stamp paper, where the rate of stamp duty differs from state to state.
- The settler must put his signatures on every page of the photocopy of the Trust Deed. Also, it is mandatory for the settlers as well as two other witnesses to be physically present along with their identity proof (original as well as self attested photocopy) at the time of registration.
To obtain an appointment with the sub-registrar office having jurisdiction based on the registered office of the trust
Trust Registration: A trust deed is a document which requires mandatory registration before the registrar of the trusts having jurisdiction. On the appointed date the trust deed is presented before the sub-registrar where all trustees need to be present along with two witnesses. The registration process is then undertaken by the office of the sub-registrar.
Obtain the Registration Certificate: After submitting the Trust Deed with the registrar, the registrar retains the photocopy and returns the original registered copy of the Trust Deed.

Documents required for Trust Registration are:

Trust Deed: The trust deed is the most important instrument in a trust, it prescribes the main objectives for which the trust is set up. Apart from the main objects of the trust, it defines its beneficiary and the powers of the trustee. The deed is signed in presence of two witnesses. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.
Passport size Photographs of all the parties to the trust deed
PAN Card of Each party to the trust
Adhaar Card of Each party to the trust
Rent Deed/ Registry copy foteh property where the address of trust is to be provided
Utility Bill of the Registered address of the Trust

Section 8 Company Registration

Under section 8 of the companies Act, 2013 is to promote non-profit objectives such as art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object etc. Minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company.In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.

The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders.

A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.

These are broadly of two Types :

With Share Capital
Without Share Capital

NGO or NPO Registrations In India

Ask an Expert Get Response with in 24 hours