Want to Start an NGO? Step-by-Step Guide

In this age of social responsibility, NGOs are vital elements that create a new generation of positive change. Such institutions are motivated by issues like poverty, poor health, low incomes, lack of quality education, and environmental sustainability that drive them. The registration process of an NGO is a situation where a particular group of people and entity becomes legally recognized as a recognized non-profit organization.There are different legal frameworks that oversee NGO registration in India. Some of them are the Societies Registration Act, 1860, the Indian Trusts Act, 1882 and the Companies Act, 2013. Depending on the character and goals of an NGO, it may choose registration under one of these statutory provisions. 

For example, the Societies Registration Act, 1860, provides for the incorporation and regulation of societies formed by people having literary, scientific, or artistic aptitude; also having charitable intents and objects. However, registration of charitable trusts is done under the Indian Act while registration of non-profit companies as Section 8 Companies is carried out under the Company’s Act. Thus, while registering is an early step in the evolution of NGOs that can lead to transformations that persist for generations, it is critical to understand how these processes unfold.This write-up will focus on the types, roles, objectives, advantages, documents, and strategies involved in NGO registration.

Regulation

In India, the regulation of NGOs is based on the Societies Registration Act of 1860 and the Indian Trusts Act of 1882. These activities are governed by the states where the NGOs intend to conduct their activities.According to the Societies Registration Act, 1860, societies which have as their objects the promotion of literature, science, fine arts, charity, or any other useful purpose may be registered. Society is created by seven or more persons joining for any legal cause. A nonprofit company may also get registered as Section 8 Company or Section 8 Foundation Company under Companies Act, 2013. Such companies are established for charitable or nonprofit purposes and do not consider any profits as the main aim. Registering as a Section 8 Company provides certain benefits, such as tax exemption and others.

For one to become a Section 8 company, an application must be filed to ROC and the supporting documents inclusive of MOA, art of association and list of the director’s name are expected. The application should also have a statement confirming its conformity to the regulations as provided for in section 8 of the companies Act 2013.

In this case the Section 8 Company receives a Certificate of Incorporation which makes it legal after the successful registration. This means that the company must abide by the applicable reporting requirements provided for in the Companies Act of 2013. Moreover, any earnings from of Section 8 company can only be used exclusively for the purpose of achievement of objectives in the constitution and not on dividends.

Why Adviso?

Obtaining NGO Registration involves various requirements, document preparation, and pre-and post-compliance obligations. It is essential to comply with the specific terms of the NGO. Getting anNGO Registrationcan be a tedious process without professional support. That’s where Adviso comes in. At Adviso, we provide expert assistance for NGOs under the relevant authorities. Our Lawyers, CA, and CS experts guide you through every step of the journey to ensure your Company lists smoothly and efficiently. With Adviso's expertise and assistance, you can easily navigate the complexities of NGO, saving time and ensuring compliance with all necessary regulations.