Registration and Incorporation of an NGO in India: Trusts, Society, Company Registration
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A Non-Governmental Organisation (NGO) is a recognized,an association of persons or a body of individuals. Such types of institution shall a definite name and objective and can be a registered one or an unregistered one. When registered, an NGO acquires a legal character.
Under Indian law, Non-Profit Organizations can be recognized in three forms:
·      Trusts
·      Societies
·      Section 25 companies
Section 25 companies can be said to be the most reliable strongest organizational structure:
·      Indian Trusts have no unified law.
·      Indian Societies have non-identical legal and institutional frameworks from state to state.
·      Indian Companies (incl. Sec 25 companies), have one uniform and consistent law across the country – Companies Act 1956.
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I. Trust Registration:
Legislation:Â the Indian Trusts Act 1882.
Main Instrument:Â trust deed, containing:
·      aims and objects of the trust,
·      minimum and maximum number of trustees,
·      how other trustees may be appointed or removed,
·      how the trust should be managed,
·      signature of both the settler/s and trustee/s in the presence of two witnesses,
·      Executed on non-judicial stamp paper, etc.
Trustees:Â Minimum of 2 trustees.
Application for Registration:Â To the official having jurisdiction over the area in which the trust has to be registered.
The application form should be signed by the applicant before the
·      registrar,
·      sub-registrar,
·      deputy registrar,
·      Regional officer or superintendent of the regional office of the charity commissioner or authorized registrar.
The application form should be submitted, along with a copy of the trust deed.Â
II. Society Registration:
According to section 20 of the Societies Registration Act, 1860, the following societies can be registered:
·      charitable societies,
·      military orphan funds
·      societies established for the promotion of literature, science or fine arts ,etc.
Legislation:Â Societies Registration Act, 1860, which is a federal act. In certain states, Main Instrument: The memorandum of association and rules and regulations.
Trustees:Â A minimum of seven managing committee members.
Application for Registration:Â Registration can be done either:
·      at the state level or
·      at the district level .
The procedure differs from state to state. However generally the application should be submitted along with:
·      memorandum of association and rules and regulations;
·      consent letters of all the members of the managing committee;
·      authority letter duly signed by all the members of the managing committee;
·      an affidavit sworn by the president or secretary of the society on non-judicial stamp paper, together with a court fee stamp; and
·      a declaration by the members of the managing committee regarding that the funds of the society.
The memorandum of association and rules and regulations need not be executed on stamp paper.
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III. Section-8 Company – (Old Section-25)
Company can be established for promotion of commerce, art, science, religion, charity or any other useful object.
Legislation:Â Section 8 of Indian Companies Act, 2013 (old section-25 of the Indian Companies Act, 1956).
Main Instrument:Â Memorandum and articles of association (no stamp paper required)Â
Board Members:Â A minimum of three members.Â
Application for Registration:Â
·      An application must be made for availability of name to the registrar of companies.
·      An application has be made in writing to the regional director of the company law board.
·      The applicants must also provide registrar of companies a copy of the application and each of the other documents that had been filed before the regional director of the company law board.Â
·      The applicants should also publish a notice in the prescribed manner at least once in a newspaper in a principal language of the region.
·      The regional director shall determine whether the license should or should not be granted.Â
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