Non-governmental organizations (NGOs) are autonomous entities that generally operate without profit motives, separate from governmental oversight and control. These organizations are vital in tackling humanitarian and social challenges worldwide. Their efforts often span various sectors, including but not limited to poverty reduction, education, healthcare, environmental sustainability, human rights advocacy, and community development. The range of NGOs can differ greatly. Some organizations focus mainly on their own countries, dealing with local concerns such as access to education or healthcare, while others operate globally, addressing pressing issues like climate change or refugee crises.

Non-Governmental Organizations (NGOs) in India are categorized into three distinct types:

  • Trust
  • Socities
  • Section 8 Companies

Trust (Indian Trusts Act 1882)

Public charitable trusts typically arise when land or property is at stake. In India, the Public Charitable Trust serves as a potential type of NGO entity. Registration for such a trust can be conducted under the Indian Trusts Act of 1882. Generally, Indian public trusts are immutable. While there is no national legislation governing public charitable trusts in India, several states, especially Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh, have enacted Public Trust Acts. Trusts can be created for the following purposes:

Alleviation of poverty or hardship:

  • Educational support;
  • Medical assistance;
  • Offering recreational facilities or other leisure activities (including support for such initiatives), provided these facilities serve the interests of social welfare and public benefit;
  • Promotion of any other aims that benefit the general public, excluding those that pertain solely to religious instruction or worship.

Eligibility for Trust Registration

To qualify for registration as a trust in India, the following criteria must be fulfilled:

  • Number of individuals: A minimum of two individuals is required to establish the trust.
  • Legal compliance: The trust must be created per the Indian Trusts Act of 1882.
  • Absence of disqualifications: No participant in the trust should be disqualified under any Indian law.
  • Lawful purpose: The objectives of the trust must not contravene any Indian law or public policy.
  • Equitable practices: The actions of the trustee should adhere to fair practices.
  • Capable trustees: The trustees need to be competent to enter into contracts.
  • Verified office address: The trust must possess a valid and verifiable office address.
  • Minimum trustee requirement: A charitable trust must have at least three trustees.

Essential Documents Required for Trust Registration

  • Aadhar Card
  • Driving License
  • Voter ID
  • A bill of water or electricity stating the address that is required to be registered

Societies (Societies Registration Act 1860)

Another option for registering an NGO is as a society. Societies are membership-based organizations that can be established for charitable, scientific, or other purposes. Typically, they are overseen by a governing council or managing committee. Societies operate under the Societies Registration Act of 1860, which has been embraced by several states. Unlike trusts, societies can be dissolved. As Per Section 20 of the Societies Registration Act, the types of societies eligible for registration under this Act include, but are not limited to the following:

Charitable organizations:

Organizations created to advance science, literature, education, or the fine arts; and

Public art museums and galleries, along with specific other kinds of museums.

Eligibility for Societies Registration

To qualify for registration as a Societies Registration in India, the following criteria must be fulfilled:

  • Minimum Membership: A society must consist of at least seven individuals.
  • Age Requirement: All members need to be over 18 years of age.
  • Purpose of the Society: The society's goals should align with those outlined in the Societies Registration Act of 1860, including literary, scientific, or charitable endeavors.
  • Memorandum of Association (MOA): A document detailing the society's name, objectives, rules and regulations, and information about the governing body must be provided.
  • Registered Office: The society must maintain a registered office address.
  • Governing Body: A governing body is required, comprising a president, secretary, and treasurer.

Essential Documents Required for Societies Registration

  • Two copies of the Memorandum of Association and by-laws of the society
  • Identity proof of nice members
  • Aadhar Card
  • Voter ID
  • Driving license
  • Address proof of the office- water bill or electricity bill
  • Name of the society

Section 8 Company (Section 8 of the Companies Act 2013)

The third method for registering an NGO is through Section 8 of the Indian Companies Act, 2013. A Section 8 company (formerly known as a Section 25 company) is characterized by limited liability. However, the profits generated by this company are not distributed to shareholders; instead, they are reinvested into the organization's promotional activities. An individual has the option to register as a public limited company (which requires three directors) or as a private limited company (which requires two directors).

Eligibility for Section 8 Company

To qualify for Section 8 company registration in India, an individual or group must aim to advance particular charitable goals such as education, art, science, sports, social welfare, environmental protection, or religion. The intention should be to reinvest any profits into these activities rather than distributing dividends to members. This means that the company's primary focus must be non-profit, prioritizing societal benefit over generating personal wealth for its members.

Essential Documents Required for Section 8 Company

  • The Articles of Association
  • Memorandum of Association
  • Declaration by the subscribers and by the directors
  • A confirmation of the address of the office
  • Two months' utility bills copy
  • Certificate of incorporation of the Outer Country body corporate [If applicable]
  • A resolution passed by the global Company [If applicable]
  • A recommendation declared by the promotional Company [If applicable]
  • The interest of the directors from other entities [If applicable]
  • Nominee’s assent
  • Identity proof and residential address of the subscribers and the nominees
  • Identity proof and residential address of Applicants
  • The Declaration/Resolution of the Unregistered Companies
  • DSC (Digital Signature Certificate)