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Starting an NGO in India

In India, Non-profit organisations/ public charitable organisations can be registered under any of the following manner :-

  1. Trust –

A Private or public trust can be registered under the Indian Trusts Act, 1882 or as per the local State Laws. It requires minimum two trustees, one settlor and one Trustee or both can be the same person but there is no maximum number of trustees. A Trust Deed executed by both Settlor and Trustee specifies the aims and objects of the Trust, name of the Trust, mode of management of the Trust, rights and duties of beneficiary, trust property, etc. It is the simplest form of creating an NGO

  1. Society –

Society can be formed under Societies Registration Act for the purpose of promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs. It requires a minimum of 7 members, giving consent for formation of a Non-profit association. A requisition application must be made to the Registrar of Societies along with memorandum of association and upon payment of relevant fee, the association is registered.

  1. Section 8 Company –

This Not for profit Company requires to be registered under the Companies Act, 2013 with a minimum of two Directors & two members, for promoting commerce, art, science, religion, charity or any other useful object. The profits, if any, or other income under this Company are applied for promoting only the objects of the company and no dividend is paid to its members.

Subsequent to registration, the NGO needs to obtain S.80G & S.12A registration under the Income Tax Act. Donations received by the NGO are then exempted from tax. If there are foreign contributions or donations to be received, a License under Foreign Contribution Regulation Act needs to be obtained.