In India, NGO can be registered in any of the 3 available type of entities structure

Section 8 Company Registration

Society Registration

Trust Registration

Which Entity Structure to be formed can be decided by analyzing the comparative points mentioned below

Procedure Rules and Requirements Company Society Trust
Registration processes have the Status of Non Profit Organization (NGO)/Non Profit Organization (NPO) Non Profit Company is an NGO/NPO Society is an NGO/NPO Trust is an NGO/NPO
Law/Act applied for to register NGO Companies Act Society Registration Act, 1860 Indian Trusts Act/Bombay Public Trusts Act.
Time takes to From 3-6 Months 1-2 Months 1 Month
Registering Authority Registrar of Company Registrar or Deputy Reg. of Societies of the concerned State/Charity Commissioner Sub-Registrar of Registration Charity Commissioner
Issue of Name approval Before Registration name approval is required by application to ROC If any other NGO is not registered with the required Name in the particular jurisdiction of registration then it is possible And if any other Society (NGO) is registered with the name in the registrar then it cannot be approval and provided. Name approval is not required, if the name is not under Emblem Act.
The State Emblem of India (Prohibition of improper use) Act, 2005 Name cannot be approved if the name is restricted under the Emblem Act. Name cannot be approved if the name is restricted under the Emblem Act. The names restricted under the Emblem Act can be disapproved but sometimes some Deputy Registrar and Readers refuse the other names which are not under the Emblem Act just due to their personal and unofficial reasons, this is illegal they cannot do it. If they do such action, they can be legally challenged against their offensive and unauthorized actions.
Eligibility of Family Members to be Member of Organization Anybody can be the director of a Company but certain Government Ministries /Departments and funding agencies can refuse funding for the Company having same family member as directors. Members of the same family cannot be member in a Society. There is no restriction in formation of a trust with members of the same family.But certain Government Ministries /Departments and funding agencies can refuse funding to the trust those are having same family members as trustee. So initially family members can be there to form NGO but at the time of funding from certain Ministries of Funding agencies the trustees can be changed.
Minimum members/Directors/Trustees at state level Registration required Minimum two Directors Minimum Seven Members At least (minimum) two Trustees/Members.
Minimum Members at National level required Minimum two Directors. Minimum Eight Members from 8 different states are required in National level Society. Minimum Two Trustees only, no limit of maximum Trustees/Members.
Governing Structure General Body of Directors.
Board of directors
General Body.
Executive Committee.
General Body/Board of Trustees.
Executive Committee Or Only one General Body of Trustees.
Area of operation of NGO Company can be Operated throughout India National Validity is there as the registration is granted by the Central Government Society can be operated throughout India when registered as a National level society. When a society is registered in one State, area of operation will be in that state only. Registration Under Trust Act has national Validity and can operate throughout India. Some certain terms, clauses and processes are applicable during registration and after registration.
Status for Rights of Vote and Power Provision of the voting rights vary on the basis of shareholding capacity of directors All members of a society have equal rights in the General Body. All Trustees have equal rights except the settler, if there are any specific powers are provided. Authorised persons have different powers.
Can get funding there is no difference to get funding in any of the NGO form Company can have funding possibilities Society can get funding if it is eligible according to the terms of the funding agencies or Government Ministries or departments Trust can get funding if it is eligible according to the certain terms of the funding agencies or Government Ministries or departments
Annual Reports and other Documents to be submitted or filled apart from Income tax department Company has to submit Annual return and audited accounts at the financial year end. According to the Section 4 of Societies Registration Act Annual list of managing body is to be filed every year. Resolutions are also submitted for approval in certain cases in certain states and in all or certain cases in some states. No Annual report resolution or any documents are required to be submitted or field after registration of trust to Registering authorities. Only the General body and other Executive committees or any sub committees have to maintain their own registers of meeting, resolutions, decisions and/or any other activities regarding decisions.
General Body and Board meetings In the Companies Act there are specific provisions of meeting At least one Annual General Meeting and 4 Board meeting are required to be held every year. General Body and Board meeting are required to be held as prescribed in the bye laws of the society. To follow the democratic pattern of society, regular meetings should be held for active societies. No provision exist to organise meeting But to follow the democratic pattern of working of NGO registered under trust Act, regular meeting should be organized for active Trusts. To organise meetings, adequate rules can be farmed in the trust deed.
Transfer of Directorship/Trusteeship Directorship can be transferred. Restriction on the transferred Restriction on the transfer can also be placed. Membership of Society is not transferable according to the Act. There is no provision to transfer the Trusteeship in the Indian Trust Act.
Can us Foundation, Trust, Society, Samiti, NGO words with the name of organization Foundation, Samiti, word can be used with the name. Foundation, Samiti, society, organization words can be used with name of society. In the name of trust the words Foundation, Trust, Samiti, Society or any words can be used no need to use Trust word along with the name during Trust registration.
Can a foreigner be a director/member/trustee Foreigner can be directors. A foreigner can be a member of society. There is no restriction and provision to foreigners to be or not be members. So foreigner can be members of a Trust.
If there is a foreigner in any NGO There may be certain difficulties to get FCRA registration. It is difficulties to get FCRA registration if there is any foreigner member in a society. If there are any foreigner members in a Trust then it may not possible to get FCRA.
Provision of Recurring expenditure Annual Returns and balance Sheet are filed with certain fees. Have to pay fee if there is any resolution to approve. Negligible and minimum statutory compliances are required. No statutory recurring expenditure after registration.
Eligible for School/College Formation Non Profit Company is eligible for School/College formation except in certain States of India. Society is eligible for School/College formation in all States of India, Including Rajasthan. Trust is eligible for School/College formation except in few certain States of India like Rajasthan. So if you want to form School/College in those states you have to register a separate society and can run a Trust as an NGO for social development works.
Can members get Payment or can not General body of Company can approve to get payment. General body can permit and approve to get payment. Trustee cannot receive Payment but if there is a provision to get funds in the trust deed then Trustee can receive payment for project or if the Trustee is providing professional service or consultancy.

Documents required for NGO Registration

For Society

  • Self Attested PAN Card Of All The Trustee/ Author/ Beneficiary.
  • Self Attested Aadhaar Card Of All The Trustee/ Author/ Beneficiary.
  • Passport Size Photograph Of All The Trustee/ Author/ Beneficiary.
  • Their Respective Designation In The Society Structure To Be Created.
  • Proof Of Registered Office Address To Be Kept (NOC And Rent Agreement Required).
  • Utility Bill Of Registered Office Address (Not Older Than 2 Months).
  • 3 To 4 Suggestions Of Names To Be Provided.
  • Brief Note On Activities To Be Conducted Is To Be Mentioned.

For Trust

  • Self Attested PAN Card Of All The Trustee/ Author/ Beneficiary.
  • Self Attested Aadhaar Card Of All The Trustee/ Author/ Beneficiary.
  • Passport Size Photograph Of All The Trustee/ Author/ Beneficiary.
  • Respective Designation In The Trust Structure To Be Created.
  • Proof Of Registered Office Address To Be Kept(NOC & Rent Agreement Required).
  • Utility Bill Of Registered Office Address (Not Older Than 2 Months).
  • 3 To 4 Suggestions Of Names To Be Provided.
  • Brief Note On Activities To Be Conducted Is To Be Mentioned.

For Section 8

  • Self Attested Copies Of PAN Card Of All The Directors And Subscribers
  • Self Attested Copies Of Aadhaar Card Of All The Directors And Subscribers.
  • Duration Of Stay Of Directors At The Address Given Address (Months And Years)
  • Self Attested Passport/ Voter Identify Card / Driving License. (Identity Proof For DIN)
  • Self Attested Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill (Address Proof For DIN)
  • Passport Size Photographs Of All The Directors
  • Mobile No. And E-Mail Id Of All The Directors
  • 2-3 Proposed Names And Objects To Be Conducted By The Company
  • Copy Of Utility Bill Eg- Landline Bill Or Electricity Bill Where The Registered Office Of The Company Is To Be Situated (Shall Not Ne Older Than 2 Months)
  • In Case Of Rented Premises- Rent Agreement + Electricity Bill + NOC
  • Educational Qualification and Occupation Of Director and Subscribers.
  • Place Of Birth Of Director/ Subscribers
  • Proposed Capital Contribution Along With Division Of Capital Among Subscribers

Process of Incorporation

Step 1.

Collection of Documents

Step 2.

Drafting of Legal Documents as Required

Step 3.

Filing of Incorporation Documents with Respective Authority

Step 4.

Approval Granted

Pricing

Start Here

Upload Documents

Upload Documents

Fill Form

Filling up form (for 10 percent additional discount)

Payment Gateway

Payment Gateway

Incorporation Process Initiate

Incorporation Process Initiate

Start Here

Upload Documents
Filling up form (for 10 percent
additional discount)
Payment gateway
Incorporation process initiate

Frequently Asked Questions

Why do you need to register an NGO?

There are many reasons why it is better to register an NGO. One of the most important ones in funds. As an NGO you will receive funds from various quarters. The money you get from donors has to be put in a bank. To open a bank account under a company or an NGO, you need to have some documents. The registration of an NGO provides you with documents to show that funds are received in the NGO's name.

What are other alternatives to start and set up a Non- Profit Organization?

If you do not want to start an NGO, you have other options by which you can help society. You can start a club, a volunteer service, be part of a local chapter of an already existing NGO and even be a fiscal sponsor.

Can any Government employees or officer be a member of NGO?

Yes. Government employees or officers can be part of NGOs provided the NGO is not anti-government. There are a few rules too that these people have to follow, one of them is to make sure that the NGO is not profit making.

Can a newly registered NGO apply for FCRA Registration?

In general practice FCRA registration can be applied only after expiry of 3 years from the date of NGO registration. However, after successful NGO registration the entity can apply for 'prior approval' under FCRA regulation for accepting foreign remittance. In order to apply for prior approval following conditions must be satisfied:

  • The foreign grant will be remitted by a specific contributor.
  • Such grant will be utilized for a specific project.
  • NGO must be in possession of a approval letter issued by such contributor.

Is there any tax exemptions granted after NGO Registration?

Yes, after NGO registration is completed you are recommended to apply for 80G and 12A registration under Income Tax Act, 1961. These registrations ensure dual tax exemptions, to the NGO as well as to its donors.