NGO/Trust

NGO/Trust Registration in India

Apart from aiming for commercial success, if an enterprise is formed by a person/group of people for the purpose of motivation, development and welfare without looking for profit, formation of Non-Government Organizations (NGO) is an option for them to contribute to the society and our country. In India, NGOs work to attain a number of noble causes, such as:

• Social Service
• Arts, Culture and Humanities
• Education
• Environment
• Animal-Related
• Health Care
• Mental Health, Substance Abuse
• Diseases, Disorders and Medical Discipline
• Medical Research
• Crime and Legal
• Employment
• Food, Agriculture and Nutrition
• Housing
• Public Safety, Disaster Services
• Recreation and Sports
• Youth Development
• Human Services
• National, National Affairs and National Security
• Civil Rights, Social Actions and Advocacy
• Science and Technology
• Social Science
• Public, Society Benefits
• Old Age Welfare Programmes
• Women Welfare Programmes
• Skill Development and Livelihood Programmes for Women
• Person with Disability/Physically Challenged Persons Welfare Programmes
• Religion
• Mutual, Membership Benefit
• Other Social Welfare Programmes

Since, NGOs do not work for gaining any profit and their mission is to utilise their fund and resources to achieve certain welfare/development, they are called as Non-Profit Organizations (NPOs).

As per World Bank, NPOs are defined as ‘Private Organizations that pursue activities to relieve suffering, promote the interest of poor, protect the environment, provide basic social services or undertake community development.

Note : In India, several NGOs are working for the above stated purposes that are either registered or unregistered.

NGO TRUST - REGISTRATION PROCEDURE

NGO TRUST - ITS PURPOSE

A Trust can be formed by at least two trustees, where members of family (one or more) can also be included (although in some cases, Government Ministries of India/Department and Funding Agencies can refuse funding a trust consisted of same family members). It is formed with a welfare/religious purpose and can operate throughout India. Trust is formed with a sanction of Trust Deed, an advisory element for functioning/operating the trust for the reason it has been established.

NGO TRUST FORMATION AND FEATURES

Types of Trusts: Public (built with common public for general welfare) or Private (built with closed groups, like, family members/individuals for specific welfare purpose)

Law/Act Applied to Register: Indian Trusts Act/Bombay Public Trusts Act (No National Law governs Public Charitable Trusts in India but States have Public Trust Acts)

Registering Authority of Trust: Sub-Registrar of Registration/Charity Commissioner

Time of Trust Formation: 2 days to 1 week

Trust Governing Structure: General Body/Board of Trustees, Executive Committee/One General Body of Trustees

REGISTRATION OF NGO TRUST

A Trust Deed should be prepared for this purpose, where the author of the Trust has to mention the following:

• Intention to create a Trust
• Purpose of the Trust
• Beneficiary
• Trust Property to transfer to the trustee (unless declared by Will/Author is himself the Trustee)

Final Deed is printed on a non-judicial stamp paper to present before the Sub-Registrar Office in the concerned jurisdiction area in presence of all the trustees and two witnesses. A Government Registration Fee is to be deposited for this purpose.

• Composite GST
• Voluntary GST
• GST Registration can be done fully online with NIL charge.
• Once registered, a trader is liable of monthly (quarterly, for Composite GST Taxpayers) GST Return filing as the annual income compliance.
• Failing GST Registration (when mandatory)/Return Filing by any trader is a severe punishable offense as per CGST Act.

REGISTRATION OF NGO SOCIETY

Society registration is managed by State Governments. Accordingly, Application of Registration of a Society must be made to the concerned authority of the State, in which the Registered Office of the Society is to be located.

Procedure followed for the purpose of registration:

• Founding Members agree on the Society’s Name.
• Memorandum, Rules and Regulations of the Society are chalked out.
• Founding Members sign and validate the Regulations.
• Oath Commissioner, Notary Public, Gazetted Officer, Advocate, Chartered Accountant Class Magistrate should witness with their stamp duty and complete address.
• Memorandum is submitted to the Office of concerned Registrar of Societies in the State with a registration fee for the purpose of registration.