Understanding NGO Registration Process, Its Eligibility and More

Non-Governmental Organizations (NGOs) stand as pillars of social change, addressing pressing issues ranging from poverty alleviation to environmental conservation. Their impact is profound, but their journey begins with a crucial step: registration. This guide is a roadmap for those passionate about making a difference, offering a comprehensive overview of the NGO registration process. From understanding eligibility criteria to navigating legal formalities, every aspect is illuminated to empower aspiring NGOs on their quest to create a better world.

Eligibility Criteria for NGO Registration

Non-Governmental Organizations (NGOs) serve as vital instruments for social progress and community welfare. However, before initiating the process of registration, it’s imperative to ensure alignment with specific eligibility criteria. While these criteria may vary based on the jurisdiction and legal framework, certain fundamental requirements are typically universal.

1. Non-Profit Nature:

At the core of NGO registration is the commitment to operate on a non-profit basis. This means that the organization’s primary objective should be to serve the community or advance a particular cause, rather than generating profits for its members or stakeholders. The NGO’s financial activities must be transparent and geared towards furthering its stated mission and objectives.

2. Mission and Objectives:

Clarity and specificity in mission and objectives are essential prerequisites for NGO registration. The organization must articulate its intended purpose, whether it’s addressing poverty, promoting education, advocating for human rights, or undertaking environmental conservation efforts. These objectives should be clearly defined in the NGO’s governing documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA).

3. Legal Structure:

NGOs can adopt various legal structures, including trusts, societies, or non-profit companies, depending on the legal framework of the country where registration is sought. It’s crucial to select a legal structure that best suits the organization’s operational needs, governance structure, and compliance requirements. Additionally, the chosen legal structure should facilitate effective management, accountability, and sustainability of the NGO’s activities.

4. Compliance with Regulatory Requirements:

NGOs must adhere to all relevant regulatory requirements and legal obligations imposed by the governing authorities. This includes obtaining necessary licenses, permits, and approvals for conducting specific activities, as well as complying with reporting and disclosure obligations. Failure to comply with regulatory requirements can jeopardize the NGO’s legal status and undermine its credibility and effectiveness.

5. Governance and Management:

Sound governance and effective management are essential for the success and sustainability of an NGO. The organization should have a well-defined governance structure, including a board of directors or trustees responsible for overseeing its operations and strategic direction. Transparent decision-making processes, accountability mechanisms, and conflict-of-interest policies are integral to ensuring ethical conduct and maintaining public trust.

Meeting the eligibility criteria for NGO registration is a foundational step towards establishing a legally recognized and credible organization dedicated to serving the community’s needs. By fulfilling these criteria and demonstrating a genuine commitment to social impact, NGOs can embark on their mission with confidence and purpose.

Documentation Required for NGO Registration

In the case of Trust

Parties to the Trust Formation are Settlor/Trustor/Grantor (who owns the trust by placing assets in the name of the trust), and Trustee (he/she is under obligation to maintain the property of the trust to seek the maximum benefit to the beneficiary); and the Beneficiary is the third party who gets the benefits of the Trust property held and managed by the Trustee.

• Identity proof such as Voter ID, Aadhar ID Card, Passport, and others.
• Photographs of all the parties of the Trust Deed.
• Proof of the office – Rent Agreement and Electricity Bill.
• Drafting of Trust Deed and after fulfilling the conditions of Trust Deed then need to register under the respective authority of the state.
• Obtain the certificate
• Apply for PAN, TAN, and Bank Accounts of the Trust.

In the case of Society

1. Minimum 7 members are required and no upper limit. (Mention the designation given by the Society to its members like President, Chairman, Vice President, and the Secretary of the Society).
2. Photo, PAN, and Aadhar of every member of the Society.
3. Proof of residence – Current month updated bank statement or latest electricity bill.
4. Proof of registered office – Rent Agreement and Electricity Bill.
5. Drafting of Memorandum of Association and By-Laws of the society (Rules and Regulations governing the Society)
6. List of Members defining their position in the Society and their signatures ahead of the name.
7. Declarations by the competent persons of the society.
8. Pay the fee as stipulated amounts and submit the application in triplicate copies to the competent authority of the state.
9. After lapsing of the stipulated time, the competent authority will issue an incorporation certificate with a registration number to it.
10. Apply for PAN, TAN, and Bank Accounts of the Society.

In the case of Section 8 Company

1. Choosing and selecting the name of the company.
2. Applying the name of the company.
3. Minimum 2 persons required.
4. Photo, PAN, and Aadhar of every person.
5. Proof of residence of a person is currently updated bank statement and latest electricity bill / other utility bills.
6. Proof of registered office – Rent Agreement and NOC from Landlord; and Electricity Bill under the name of Landlord.
7. Drafting of Memorandum of Association (MOA) and Articles of Association (AOA) and submitting such forms online after fulfilling conditions as per requirements.
8. After the defined period of time, the competent authority will issue an approval in the manner of incorporation certificate along with PAN and TANe

How to Register an NGO in India

In India, setting up a Non-Governmental Organization (NGO) is a crucial step towards contributing to social development and welfare. Before embarking on this journey, aspiring changemakers must understand the differences between registering as a trust or a society. This guide aims to simplify the complexities of both processes, providing valuable insights to help you make an informed decision.

Registering as a Society:

Step 1: Finding Members: To form a society, gather at least 7 individuals who share your vision. These members shouldn’t be close relatives. Choose your team wisely as they’ll be your foundation.

Step 2: Choosing a Name: Select a unique name that reflects your cause. Make sure it’s not already taken to avoid legal troubles. Prepare a list of backup names just in case.

Step 3: Drafting Documents: Create a Memorandum of Association (MoA) detailing your society’s objectives and Rules and Regulations governing its operations. Consider seeking legal help for this step.

Step 4: Document Submission: Submit your MoA and other necessary documents to the Registrar of Societies in your state. They’ll review everything for compliance with the law.

Step 5: Paying Fees: Pay the required registration fee, which varies by state.

Step 6: Verification and Approval:The Registrar will verify your documents. If everything checks out, they’ll approve your society’s registration.

Step 7: Certificate Issuance: Once approved, you’ll receive a Certificate of Registration, officially recognizing your society as an NGO.

To Registering as a Trust:

Step 1: Choosing Trustees

Form a trust with a minimum of two trustees, who can be family members. They’ll manage the trust’s assets for the benefit of beneficiaries.

Step 2: Drafting Trust Deed

Prepare a detailed Trust Deed outlining the trust’s name, objectives, and operational rules. Include provisions for trustee appointment and asset management.

Step 3: Stamp Paper

Print the Trust Deed on non-judicial stamp paper, adhering to state stamp duty laws.

Step 4: Witness and Signatures

Sign the Trust Deed in the presence of two witnesses. This ensures its legality.

Step 5: Submission

Submit the signed Trust Deed and required documents to the local Registrar.

Step 6: Paying Fees

Pay the registration fee, which varies across states.

Step 7: Verification and Approval

The Registrar will verify your documents. If all is well, your trust will be registered.

Step 8: Certificate Issuance

You’ll receive a Trust Registration Certificate, confirming your trust’s legal existence.

Understanding these processes empowers you to choose the registration path that best suits your NGO’s goals and aspirations. Whether as a society or a trust, each route offers a distinct journey towards making a meaningful impact on society. NGO registration is a fundamental step in establishing a legally recognized organization committed to serving the community’s needs. By adhering to the outlined eligibility criteria, preparing the necessary documentation, and fulfilling the legal formalities, aspiring NGOs can embark on their mission to create positive social change and contribute to the betterment of society.