Meaning of NGO
An NGO or Non-Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
NGO Registration in India
In India, an NGO or Non-Profit Organisation can be registered in three forms:
- Company under Section 8 of the Companies Act, 2013 (Section 25, Companies Act 1956)
- Trust under Indian Trusts Act 1880
- Society registered under Section 20 of the Societies Registration Act 1860.
Forms of NGO Registration
Trust- Trust can be registered either as Private Trust or a Public Trust under Indian Trusts Act 1880.
In India, majority of the Trusts are registered as public charitable trust a form of not-for-profit entity. Public Charitable Trusts can be established for a number of purposes, including the social service, education, healthcare, provision of facilities for recreation, and any other object of general public welfare.
NGO as trust is regulated by respective State Trust Acts. In case the State in which a Trust is planned does not have a separate Trust Act then it will be regulated by Central Indian Trusts Act, 1882. In order to register a trust minimum 2 trustees and 1 settler is required. (The person creating the Trust is called the Settlor and the person to whom the property is transferred on trust is called a Trustee. The person for whose benefit the property is transferred is called the beneficiary).
Trust Incorporation document- Trust Deed
Society- Society is an organized group of people with the sole objectives of rendering non-profitable services for the welfare and development of society. Society registration and further regulation is done as per Societies Registration Act 1860. For Society registration, minimum 7 members are required. If you plan to register the society on a national level, then minimum 8 members will be required from different states.
Society Incorporation document- Memorandum of Association By-laws
Section 8 Company- Section 8 companies are registered under Ministry of Corporate Affairs and regulated by the provisions of Companies Act, 2013. Minimum two promoters are required. Promoters (shareholders) can be same person who are appointed as directors. The name of the Section 8 Company can be incorporated without using the word “Limited” or “Private Limited” as the case may be.
Section 8 Company Incorporation document- Memorandum and Articles of Association
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