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"NGO -- non profit organization"

Hello friends, today we will discuss about some essentials that you should keep in mind before starting an NGO. As the name suggests NGO refers to a non-profit organization. It is formed for the welfare of the society and for achieving this purpose it can perform various types of functions relating to the betterment of environment, socially backward people, old age people, animals, plants, etc.

In India, depending upon the purpose and nature of work, the NGO can be registered as:

  • A trust under Indian Trust Act, 1882.
  • A society under Societies Registration Act.
  • A Section 8 Company under Companies Act, 2013.

 

IMPORTANT FEATURES

1.      In case of trust,

a. Minimum 2 members are required, each being persons who has attained majority and of sound mind, capable of entering into a contract.

b. One member is termed as the trustee and other being settlor, whereby settlor creates the trust and transfers assets to the trustee for the benefit of third party, generally belonged to socially backward classes.

c. It is registered with Registrar of Trusts.

d. Property of trust is generally managed by the trustee, but he/she do not have any right to sell off the same without permission of court.

e. It is normally irrevocable.


Documents required for registration:

§Objective of the trust in written form.

§  Trust deed on properly valued stamp paper.

§ Photographs of trustee and settlor.

§   PAN card of trustee and settlor;

§  Address proof (in case of rented accommodation, it shall be accompanied with   NOC from the owner) 

 

2.      In case of society,

a. Generally formed for social welfare and for promoting arts and literature like forming public museums and libraries.

b. Minimum 7 members.

c. It is governed under Societies Registration Act, 1860.

d. Registered with registrar of societies of the concerned state.

e. Property vested with the society may be sold as per by-laws of society.

f. It may be dissolved as per the bye-laws of society.

 

Documents required for registration:

§  Proposed name;

§  Identity proof of all members;

§  2 copies of MOA and by-laws;

§ Address proof of the place of business (NOC from landlord in case of rented property);  

 

3.      In case of  Sec 8 Company,

 

a. Generally formed for charitable purposes.

b. Minimum 2 Directors and 2 Share Holders are required

c. It is governed under the Companies Act.

d.  It may be dissolved as per the by –laws.

 

Documents required for registration:

§  DSC’s of Directors

§  Showing proposed name and objectives

§ MOA and Articles of Association;

§  Details of promoters;

§ Details of Board of Members;

§ Address Proof;

§ PAN Card of all members;

§INC -14 and INC -15 i.e. declaration by professionals and by promoters

§DIR-2 Form specifying the consent of  directors;

 

           

BENEFITS OF REGISTRATION

1.      LEGAL IDENTITY

2.      TAX BENEFITS

3.      AVAIL LOAN EASILY   

4.       FACILITATE  OPENING OF  CURRENT ACCOUNT

5.      DEPOSES FAITH TO THE CREDITORS

6.      PROMOTES TRANSPARENCY

 

 

I hope I have made mysely clear about the basics of NGO startup in India. For any other queries please feel free to write below in our comments section.

 

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Comments

  1. Kailash Madan24 July 2021 at 11:36

    Wakeel Sahib, Thanks for enlightening on NGO, Trust and Registration benefits
    Kailash Madan, M.com, LL.B, CAIIB, ACS

    ReplyDelete
  2. Extremepovertyeliminated26 July 2022 at 00:42

    The blog that you shared here about NGO helping poor is very informative or us. keep sharing

    ReplyDelete

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