NGO Registration: How to start an NGO in India

So many people want to quit their high profile jobs and turn to social work! If you are one of them, you should know that setting up a not-for-profit non-governmental organization (NGO) is a simple and not so difficult task. One can even do it on his or her own or take professional help from a lawyer, chartered accountant or anyone familiar with the steps involved.

NGOs are organizations that usually work towards the promotion of certain causes or the welfare of a target population. Since they function in the non-profit realm, their objectives and modus operandi are often a bit different compared to for-profit organizations. In order to achieve their objectives, NGOs need to follow a realistic approach right from the stage of conceptualization. Besides, there are rules and regulations laid down by the Government of India and the provincial state governments. Here is a brief step-by-step guide for NGO Registration in India.

The first step is to list down the cause that your NGO will be supporting. From women’s right, children’s welfare, saving the environment, it can be anything. Draft a clear statement of your mission that reflects the purpose it stands for, its goals, the target group and its objectives.

There will obviously be the board of Directors and members who will be responsible to govern the NGO. Have like-minded people, people with the spirit of charity and social welfare and strong-willed people to be a part of the organisation of the body. You also need to have the support of financial advisers, technicians and people with knowledge of legal procedures.

It is an obvious requirement for any organisation to have a name. Same is the case with an NGO. The name should be short and catchy – it can be anything, any idea that you have, a reflection of the cause. However, it should not be similar to any Government Authority Body, Board or Ministry, or any other registered company or NGO.

Every NGO in India is legally required to document a trust deed/ Memorandum of Understanding /Bylaws. It contains the name and address of the NGO, mission and objectives, details of governing body members, human resource and staffing information, rules and regulations, administrative laws and procedures. The Memorandum must be prepared and drafted in the acceptable pattern, manner, process, and parameters that are required for registration and other procedures. It is better to hire legal NGO Consultants who know the requirements better and have a better knowledge of the procedure. Before the submission of the application for registration of an NGO, it is important to mention the bylaws that represent the rules, regulations, operation modes, working patterns, working area, responsibilities of the NGO and objectives of an NGO.

As a company: An NGO should be registered as a company under Section 8 of the Company’s Act 2013 when it’s objective is to promote arts, science, education, sports, social welfare, protection of the environment and even for research purposes.

When registered as a company, it will not have to add the word ‘limited’ at the end, whereas it is mandatory for the company to have words like Foundation, Council, Federation etc. in its name.

As a society: An NGO with seven or more members can be registered as a society under Society registration Act of 1860. The process is a little tedious than usual but is efficacious on the long run with respect to its functioning and working.

Section 20 of the Act elucidates that such societies may include a military orphanage, formation and maintaining libraries, galleries and public museums. However, there must be well-defined powers and regulations in their memorandum while registration itself, accompanied by affidavit. Such a society provides rules and powers for the members in the documents itself and is governed as per the society bylaws.

As a trust: While like Section 8 Company and Society, Trust is a separate legal entity. The Author or Founder of the Trust will initially contribute to the corpus of the Trust and will also list out the objectives for which the said corpus can be used and also set the vision and mission of the Trust.

After yielding the required trust deed and application form for Trust registration, on an average, it takes only 2 days to 1 week for its formation. Here, trustees are vested with power rather than a single person hence decisions tend to be more acute and quicker.