Presentation on NGO

NGO Registration Methods in India

1. Trust
(Under Indian Trust Act. 1882)

2. Society
(Under Societies Registration Act. 186 )

!. "o#$any
(Under section 2% o& "o#$any Act. 1'%6)

1. TRUST The public charitable trust is a possible form of not-for-profit entity in India. Typically, public charitable trusts can be established for a number of purposes, including the relief of poverty, education, medical relief, provision of facilities for recreation, and any other object of general public utility. Indian public trusts are generally irrevocable. No national law governs public charitable trusts in India, although many states have Public Trusts Acts. No separate Act is applicable Trust eeds can be registered Trust deed on a stamp paper as per stamp duty payable on the corpus amount. !ust clearly and broadly define objects of the trust "trength of #oard of Trustees Powers of the Trustees $ remuneration $ benefits #road guidelines for management of trust Treatment on dissolution must be clear. 2. SO"I(TI(S "ocieties are membership organi%ations that may be registered for charitable purposes. "ocieties are usually managed by a governing council or a managing committee. "ocieties are governed by the "ocieties &egistration Act '()*, which has been adapted by various states. +nli,e trusts, societies may be dissolved. In state level at least - promoters .not blood related/ In all India level at least ( promoters from ( different states of India In !emorandum of Association following clause are included Name 0bjects profits$benefits to promoters$board members dissolution clause subscribers

&ules 1 &egulations define rules of membership, powers, duties and responsibilities of the board and each office bearer

After &egistration process 2ertificate of &egistration, 2ertified copies from &egistrar of

!emorandum of Association and &ules 1 &egulations.

 &egistrations under PAN, TAN, +$s '3AA of Income Ta4 Act, +$s (*5 of Income Ta4 Act, I62 code and 7AT.

!. "O)PAN* UN+(R S("TION 2% O, "O)PANI(S A"T- 1'%6 A section 38 company is a company with limited liability that may be formed for 9promoting commerce, art, science, religion, charity or any other useful object,9 provided that no profits, if any, or other income derived through promoting the company:s objects may be distributed in any form to its members. &egistration process as usual as normal formation of New 2orporate entity. Apply for license to operate as a company registered u$s 38 of the 2ompanies Act ';8) After obtaining license submit papers for incorporation. 2ertificate of incorporation issued to mention that the company is registered under section 38.

A$$.ica/.e 0a1s 2onstitution of India Articles ';.'/.c/ and <*= Income Ta4 Act, ';)'= Public Trusts Acts of various states= "ocieties &egistration Act, '()*= Indian 2ompanies Act, ';8), section 38= >oreign 2ontribution .&egulation/ Act, ';-)=

Pu/.ic 2ene&it Status To be eligible for ta4-e4emption under the Income Ta4 Act, ';)', a not-for-profit entity must be organi%ed for religious or charitable purposes. 2haritable purposes include 9relief of the poor, education, medical relief and the advancement of any other object of general public utility.9 Public charitable trusts, by definition, must be created for the benefit of the public. "ocieties li,ewise may be registered for charitable purposes. "ection 38 companies are formed for the limited purposes of 9promoting commerce, art, science, religion, charity or any other useful object.9

OT3(R )A4OR +I,,(R(N"(S 5 SI)I0ARITI(S IN TRUST- SO"I(T* AN+ "O)PAN*

TRUST
Registration under )ini#u# nu#/er o& $erson (s) re6uired &or registration Registration done in t8e o&&ice o& Indian Trust Act. 2 Su/9registrar

SO"I(T*
Societies Registration Act. 7 Registrar o& societies

S(". 2% "O)PAN*
"o#$any Act. 2 Registrar o& "o#$anies

Registered 1it8 s$eci&ication o& 4urisdiction

Trust can 1or; a.. o<er India 1it8out s$ecia. #entioning in deed 2oard o& Trustees (.igi/.e (.igi/.e a&ter 129A > 8 9G registration (.igi/.e a&ter ,"RA registration *es (asy Process

Se$arate registration &or Nationa. .e<e. needed &or society. Go<erning 2ody (.igi/.e (.igi/.e a&ter 129A > 8 9G registration (.igi/.e a&ter ,"RA registration *es +i&&icu.t Process

"o#$any can 1or; any18ere in country i& once registered 2oard o& +irectors (.igi/.e (.igi/.e a&ter 129A > 8 9G registration (.igi/.e a&ter ,"RA registration *es Nor#a. Process

Go<ern /y (.igi/i.ity &or recei<ing go<ern#ent grants (.igi/i.ity &or Inco#e Ta= (=e#$tion (.igi/i.ity &or recei<ing ,oreign "ontri/ution Possi/i.ity o& a#end#ents A#end#ent