What is an NGO?

An NGO or non-governmental organisation is a not-for-profit entity that typically does work for the welfare work for poorer sections of society or toward a particular cause.

Their focus may be environmental, on human or animal rights, improving health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art. That said, many NGOs may also be fronts for political or religious interests. Being not-for-profit, these entities cannot pay out any profits as dividends to members; instead, any profit must be reinvested toward the cause. NGOs raise money from donors, who may or may not receive tax breaks on their donations. In India, an NGO can be set up as a trust, section-8 company or a society.

Types of NGO

Under Indian Trust Act, 1882

A trust is meant for the welfare of the public. A trust can have varied interests, such as education, animal welfare, religious or even recreational, but is typically set up only when property is involved (schools or hospitals, for example). Most Indian states have their own act related to trusts, while the others are governed by the Indian Trust Act, 1882. To set up a trust, you need to draft a trust deed and then have it registered.

Under Indian Societies Act, 1862

A society is an organization registered under the Indian Society Act, 1860. It has a proper governing community and managing council that runs and carry out its principles. The setting up and running of a society is similar to a housing society. Just like a Section 8 Company, a society also needs Memorandum and Articles of Association; it will also have byelaws that can be amended by the managing council.

Under Indian Companies Act, 2013

A Section-8 company has limited liability and is often formed to promote commerce, recreational art or religion. The main prerequisite of Section 8 organisations is that the profits that are earned by these organizations cannot be divided among the members and could be only used to promote and strengthen the work. A Section-8 company is to be set up just like a private limited company.

NGO Registration Process

1 Working Day

After understanding your requirement, we will recommend the type of NGO that would suit you best. This will depend on the amount of money you wish to spend initially, the number of days you're willing to wait for the institution to be set up and the various features of a section-8 company, trust and society.

7 Working Days

On making the choice, we will inform you of the documents you require for setting up each of these institutions. Once you provide them, we will begin drafting the procedure. This may involved the draftng of the trust deed (in case of a trust) or the registration of directors with the MCA (in case of a section-8 company).

Up to 3 Months

As mentioned earlier, Registrars are very careful about which entities they approve. Therefore, it takes much time for a trust, society or section-8 company to be approved. We will, however, keep you up-to-date every step of the way.