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NGO and Society Registration

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NGO and Serve society, formally. Get organized structure & more flexibility.

NGO

An NGO is a non-government organisation with a charitable objective, for the betterment of the society in general. It can be started as a Trust. A Society or a Non-Profit Company [Section 8 Company], depending on the activity you wish to undertake. In India, NGO is an umbrella term for all non-profit organizations including Trust, Society and Section 8 Company. Other names for such not-for-profit organisations are “Sangathan”, “Sangh”, “Sangam”. Income tax exemption is available for all non-profit NGOs. These are sometimes confused with non-profitable companies, which refers to a regular business is not making a profit. In India, anybody is free to do social activities without forming an association or organisation. But when an individual wants to create a group that involves volunteers, activities, and resources, it becomes important to have proper management in place. To run such companies, trusts and Societies in the correct manner, a certain set of rules need to be followed. Systematic help to the society.

Benefits

Large help for the people at large.

  • A registered NGO gains the legal status and becomes accountable for the funds received. For instance, when an individual donates funds to a charitable trust. It is received under the name of the organization and used for the trust’s activities. In an unregistered firm, the assets can be received under anyone’s name and may be used for their own profit.
  • An organization that is registered as an NGO reinforces the ethical, social and legal norms of our society.
  • The basic requirement for running an NGO is to have a bank account under its name. In order to open an account, it is mandatory to be registered as a Trust, Society or Section 8 Company.
  • The registration of an NGO is necessary to seek tax exemption from the Income Tax Authority.

Registration of NGO in India

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Trust

One of the ways in which an NGO can be registered is Trust or more commonly called Charitable trust. Trust is a legal entity created by the “trustor” or “settlor”. Who transfers the assets to the second party or “trustee” for the benefit of the third party or “beneficiary”. Trusts are formed to help and support the deprived sections of the society. Any group of individuals can register a trust. And in India as such there are no specific laws to govern the public trust. However, some states like Maharashtra and Tamil Nadu have their own Public Trust Act.

Societies

A society is an entity that can be created by a group of individuals united in their cause for promoting science, arts, literature, social welfare and useful information. In addition, societies work for creating military orphan funds, maintaining public museum and libraries.

Societies are governed by the Societies Registration Act, 1860. They must be registered with the respective state Registrar of Societies to be eligible for tax exemption.

Section 8 Companies

A Section 8 company is similar to a trust and society. The objectives of a Section 8 Companies are to promote arts, science, commerce, sports, social welfare, religion, charity and environmental protection. They are registered under the Companies Act, 2013 for charitable purpose. They have better credibility among government bodies, donors and other stakeholders.

Acts governing NGO registration process

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The national authority in India allows for online registration of an NGO under three laws:
  • Trust under Public Trusts Act of each state.
  • Society under the Societies Registration Act 1860
  • Section 8 Company under the Companies Act, 2013

Each law defines the formation of a different type of organization, namely – Trust Registration, Society Registration, and Section 8 Company Registration. Choosing the kind of registration procedure for the charitable firm is crucial. Our experts will help select the suitable option that befits your vision and guide you with the online registration process.

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