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ngo:
Ourpanelofaccountantswiththeirsoundprofessionalinformationhelporganizationstomeettherequisitecriteriatoregisterthemselvesas
licensedcharitableornonprofitinstitutions.
FormationandRegistrationofaNonProfitorganisationsinIndia
1)Trust
2)Society
3)Section25Company
ATrustisaclosersystemofaregisteredbodythathaslimitedmembership.Itcanbeeitherafamilytrustorapublictrust.ForaTrust,electionof
officebearersisnotcompulsory.
FormationoftheNGOasTrust
AGroupofIndividualscandelivergoodstosocietybyformingpubliccharitabletrusts.Theconceptoftrustgenerallyinvolvesendowmentofsome
propertyforpublicutilityundercertainnorms.AtpresentthepracticeofestablishingfamilyorpubliccharitableTrustsbysparingcertaincash
amountforcharitable,welfareorreligiouspurposesisprevalent.Therearesomedifferencesbetweenregisteredsocietiesandatrust.Thesetupof
thetrustisnotopenhavingatendencytokeepitsmembershiplimitedandformbyelawssuitingtotheneedsofthetrustees(notnecessarilyon
democraticlines).Alsothereisverylessinterferenceoftheauthoritiesinitsfunctioning.
IndianTrustAct,1882governsprivateorfamilytrustsalthoughvariousstateshavealsoenactedtheirowntrustacts,forexampleTheMaharashtra
TrustActBombayPublicTrustAct,1950PunjabTrustActBombayPublicTrustAct,1950MadhyaPradeshPublicTrustAct,1951Rajasthan
PublicTrustAct,1959etc.So,beforeregistrationofanNGOastrust,theprovisionsofapplicableTrustActshouldbestudiedbythepromotersto
suittheirneeds.
TheTrustDeedisveryimportant.TheTrustDeedismadeonnonjudicialstamppapers,prescribedfeeandsignedbythetrusteeortrusteesfor
submissiontotheRegistrarconcerned.Incaseoftrusttheregistrarorsubregistrarhavingauthoritytoregisterpropertieshastheauthorityto
registertheTrustDeed.Hence,TrustDeedoftheproposedTrustcanberegisteredwithTehsildarorregistrarpropertiesandendowmentatthe

registertheTrustDeed.Hence,TrustDeedoftheproposedTrustcanberegisteredwithTehsildarorregistrarpropertiesandendowmentatthe
districtcollectorate.Inmetropolitancitiesseparateofficesofregistrarofpropertiesandendowmentsdofunction.
TheTrustDeedshouldcontainname(s)oftheauthor(s),settler(s)ofthetrustthename(s)ofthetrustee(s)thename(s)ifany,ofthe
beneficiary/iesorwhetheritshallbepublicatlargenameofthetrustaddressofthetrustobjectsofthetrustprocedureofappointment,removal
orreplacementofatrustee,theirrights,dutiesandpowers,etcthemodeandmethodofdeterminationofthetrustetc.
II.Society
Accordingtosection20oftheSocietiesRegistrationAct,1860,thefollowingsocietiescanberegisteredundertheAct:'charitablesocieties,military
orphanfundsorsocietiesestablishedattheseveralpresidenciesofIndia,societiesestablishedforthepromotionofscience,literature,orthefine
arts,forinstruction,thediffusionofusefulknowledge,thediffusionofpoliticaleducation,thefoundationormaintenanceoflibrariesorreadingrooms
forgeneraluseamongthemembersoropentothepublic,orpublicmuseumsandgalleriesofpaintingsandotherworksofart,collectionofnatural
history,mechanicalandphilosophicalinventions,instrumentsordesigns.
Legislation:SocietiesareregisteredundertheSocietiesRegistrationAct,1860,whichisafederalact.Incertainstates,whichhaveacharity
commissioner,thesocietymustnotonlyberegisteredundertheSocietiesRegistrationAct,butalso,additionally,undertheBombayPublicTrusts
Act.
MainInstrument:Themaininstrumentofanysocietyisthememorandumofassociationandrulesandregulations(nostamppaperrequired),
whereintheaimsandobjectsandmodeofmanagement(ofthesociety)shouldbeenshrined.
MEMBERS:ASocietyneedsaminimumofsevenmanagingcommitteemembersthereisnoupperlimittothenumbermanagingcommittee
members.TheBoardofManagementisintheformofagoverningbodyorcounciloramanagingorexecutivecommittee.
Alltheaforesaiddocumentswhicharerequiredfortheapplicationforregistrationshouldbesubmittedinduplicate,togetherwiththerequired
registrationfee.Unlikethetrustdeed,thememorandumofassociationandrulesandregulationsneednotbeexecutedonstamppaper.III.Section
25Company
Accordingtosection25(1)(a)and(b)oftheIndianCompaniesAct,1956,asection25companycanbeestablished'forpromotingcommerce,art,
science,religion,charityoranyotherusefulobject',providedtheprofits,ifany,orotherincomeisappliedforpromotingonlytheobjectsofthe
companyandnodividendispaidtoitsmembers.
Legislation:Section25companiesareregisteredundersection25oftheIndianCompaniesAct.1956.
MainInstrument:Forasection25company,themaininstrumentisaMemorandumandarticlesofassociation(nostamppaperrequired)
Trustees:
Asection25Companyneedsaminimumofthreetrusteesthereisnoupperlimittothenumberoftrustees.TheBoardofManagementisinthe
formofaBoardofdirectorsormanagingcommittee.
ApplicationforRegistration:
1.Anapplicationhastobemadeforavailabilityofnametotheregistrarofcompanies,whichmustbemadeintheprescribedformno.1A,together
withafeeofRs.500/.Itisadvisabletosuggestachoiceofthreeothernamesbywhichthecompanywillbecalled,incasethefirstnamewhichis
proposedisnotfoundacceptablebytheregistrar.
2.Oncetheavailabilityofnameisconfirmed,anapplicationshouldbemadeinwritingtotheregionaldirectorofthecompanylawboard.The
applicationshouldbeaccompaniedbythefollowingdocuments:Threeprintedortypewrittencopiesofthememorandumandarticlesofassociation
oftheproposedcompany,dulysignedbyallthepromoterswithfullname,addressandoccupation.
Adeclarationbyanadvocateoracharteredaccountantthatthememorandumandarticlesofassociationhavebeendrawnupinconformitywiththe
provisionsoftheActandthatalltherequirementsoftheActandtherulesmadethereunderhavebeendulycompliedwith,inrespectofregistration
ormattersincidentalorsupplementarythereto.
Threecopiesofalistofthenames,addressesandoccupationsofthepromoters(andwhereafirmisapromoter,ofeachpartnerinthefirm),as
wellasofthemembersoftheproposedboardofdirectors,togetherwiththenamesofcompanies,associationsandotherinstitutionsinwhichsuch
promoters,partnersandmembersoftheproposedboardofdirectorsaredirectorsorholdresponsiblepositions,ifany,withdescriptionofthe
positionssoheld.
Astatementshowingindetailtheassets(withtheestimatedvaluesthereof)andtheliabilitiesoftheassociation,asonthedateoftheapplicationor
withinsevendaysofthatdate.Anestimateofthefutureannualincomeandexpenditureoftheproposedcompany,specifyingthesourcesofthe
incomeandtheobjectsoftheexpenditure.
Astatementgivingabriefdescriptionofthework,ifany,alreadydonebytheassociationandoftheworkproposedtobedonebyitafter
registration,inpursuanceofsection25.

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Astatementspecifyingbrieflythegroundsonwhichtheapplicationismade.
Adeclarationbyeachofthepersonsmakingtheapplicationthathe/sheisofsoundmind,notanundischargedinsolvent,notconvictedbyacourt
foranyoffenceanddoesnotstanddisqualifiedundersection203oftheCompaniesAct1956,forappointmentasadirector.

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3.Theapplicantsmustalsofurnishtotheregistrarofcompanies(ofthestateinwhichtheregisteredofficeoftheproposedcompanyistobe,oris
situate)acopyoftheapplicationandeachoftheotherdocumentsthathadbeenfiledbeforetheregionaldirectorofthecompanylawboard.
4.Theapplicantsshouldalso,withinaweekfromthedateofmakingtheapplicationtotheregionaldirectorofthecompanylawboard,publisha
noticeintheprescribedmanneratleastonceinanewspaperinaprincipallanguageofthedistrictinwhichtheregisteredofficeoftheproposed
companyistobesituatedorissituatedandcirculatinginthatdistrict,andatleastonceinanEnglishnewspapercirculatinginthatdistrict.
5.Theregionaldirectormay,afterconsideringtheobjections,ifany,receivedwithin30daysfromthedateofpublicationofthenoticeinthe
newspapers,andafterconsultinganyauthority,departmentorministry,ashemay,inhisdiscretion,decide,determinewhetherthelicenceshouldor
shouldnotbegranted.
6.Theregionaldirectormayalsodirectthecompanytoinsertinitsmemorandum,orinitsarticles,orinboth,suchconditionsofthelicenceasmay
bespecifiedbyhiminthisbehalf.

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IV.SpecialLicensing
Inadditiontoregistration,anonprofitengagedincertainactivitiesmightalsorequirespeciallicense/permission.Someoftheseinclude(butarenot
limitedto):
Aplaceofworkinarestrictedarea(likeatribalareaoraborderarearequiresaspecialpermittheInnerLinePermitusuallyissueseitherbythe
MinistryofHomeAffairsorbytherelevantlocalauthority(i.e.,districtmagistrate).

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Toopenanofficeandemploypeople,theNGOshouldberegisteredundertheShopandEstablishmentAct.
Toemployforeignstaff,anIndiannonprofitneedstoberegisteredasatrust/society/company,haveFCRAregistrationandalsoobtainaNo
ObjectionCertificate.Theintendedemployeealsoneedsaworkvisa.
AforeignnonprofitsettingupanofficeinIndiaandwantingstafffromabroadneedstoberegisteredasatrust/society/company,needspermission

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fromtheReserveBankofIndiaandalsoaNoObjectionCertificatefromtheMinistryofExternalAffairs.

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