Types of NGOs in India

Non-Governmental Organizations (NGOs) are vital players in India’s social sector. However, before they can commence operations, NGOs must undergo a rigorous registration process with the government. There are three primary types of NGO registration in India, namely, Trust, Society & Section 8.

1. Trust

A trust is a legal arrangement where property or assets are held by a trustee for the benefit of others. In NGO registration, a public charitable trust is created where the trustees hold & administer assets for charitable purposes. It is the most preferred form of registration for NGOs that seek to work with philanthropic intentions. Trusts are governed by the Indian Trusts Act of 1882, which requires a minimum of two trustees & a trust deed that outlines the organization’s objectives, mode of operation, & distribution of assets during dissolution.

• Easy Formation process
• Limited liability for trustees
• Can hold immovable property

2. Society

A society is not formed for the sole purpose of making a profit. Societies are membership organizations that operate within a particular set of rules & regulations agreed upon by its members. They are registered under the Societies Registration Act of 1860 & regulated by state authorities. Societies are ideal for NGOs that aim to support civic & welfare projects, as they require seven or more members to register, & the governing body must contain a president, vice-president, secretary, & treasurer.

• Flexible Governance Structure
• Easy to Modify Bylaws
• Can hold Immovable Property

3. Section 8 Company

Also known as a non-profit company or a section 8 company, this registration is preferred by NGOs that intend to carry out social, charitable, or philanthropic activities but are also concerned with the organization’s long-term sustainability. Section 8 companies are created under the Companies Act of 2013 & have to be registered with the Ministry of Corporate Affairs. Unlike other types of NGOs, they can operate across India & are allowed to receive contributions from foreign donors. However, they must satisfy strict compliance requirements under the Companies Act, such as having a board of directors with a minimum of two directors.

• Tax Exemptions
• Legal recognition & credibility
• Greater sustainability

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Documents Required to Register a NGO

The following documents are essential for the registration process:

1. Identity Proof: Photo ID card of each director and shareholder – Aadhar card, PAN card or passport.
2. Address Proof: Utility bills or other documents of the registered office, lease agreement or property-related document.
3. Photographs: Photographs of all directors in passport size.
4. MOA and AOA: Writing of Memorandum of Association and Articles of Association that encapsulate the aim and working policies of the company.
5. Digital Signature Certificate (DSC): It is required for the filing of forms online.
6. Director Identification Number (DIN): Mandatory for all directors.