NGO Registration and Formation in India

Written By Sushma Singh

Formation and Registration of an NGO in India

NGO Registration and Formation in India

1. FORMS OF ORGANISATION

A nongovernmental organization (NGO) may be formed and registered as:

i. Trust: As a public charitable trust. A public trust, whether relating to movable or immovable property, may be created by mere delivery of possession with a direction that the property is to be held under trust. However, a written instrument of trust signed by the author and registered is always desirable.

ii. Society: Section 20 of the Societies Registration Act lays down that charitable societies and societies established for the promotion of science, literature of the fine arts may be registered under that Act. A society registered under the said Act is a legal entity apart from its members and under section 6 of the said Act, it can sue or be sued in the name of its President, Chairman, Secretary or members of the governing body of Trustees. In Secretary of State India v. Radha Swami Satsangh, it was held by the Bombay High Court that the registration of a charity under the Societies Registration Act 1860 was a prima facie evidence of the valid dedication of property for charitable purposes.

iii. Company: An association may be registered under Section 25 of the Companies Act, 1956 if the Central Government is satisfied that it is about to be formed as a limited company for promoting commerce, are, science, religion, charity, or any other useful object and it intends to apply its profits, if any, or other income in promoting its objects and to prohibit the payment of any dividend to its members. In such cases, the Central Government may by license direct that the association may be registered as a company with limited liability without the addition to its name of the word “Limited” or the words “Private Limited”.

Subscribe to Moneymint Weekly

Every Sunday we email people like you with top tips, insights and opportunities to manage your finances and build your online business. No hype, no scams, no fake gurus. Sign up below to get the next one.

Please enter a valid email address
That address is already in use
The security code entered was incorrect
Thanks for signing up

Sushma is a full-time blogger and financial expert. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.

Disclaimer: The content on this site is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on our site may differ from actual numbers. See our Privacy Policy & Disclaimer for more details.