NGO / Trust

An NGO (Non-Governmental Organization) or Trust is an entity that operates independently of government involvement and is typically set up to address social, environmental, educational, or humanitarian issues. Here’s a breakdown of the key concepts and differences:

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Non-Governmental Organization (NGO)

Definition: An NGO is a non-profit organization that operates independently from any government. NGOs can operate at the local, national, or international level, and they typically work in areas such as health, education, human rights, poverty alleviation, environmental protection, etc.
Purpose: The primary aim of NGOs is to address social issues and make a positive impact on society. They can be involved in policy advocacy, direct services, or awareness campaigns.
Structure: NGOs are usually governed by a board of directors or trustees and are funded through donations, grants, or membership fees. They can be either registered as charitable organizations or in some cases as nonprofit companies.

Trust

Definition: A trust is a legal arrangement where one party (the trustee) holds property or assets for the benefit of another party (the beneficiary). Trusts are commonly used to manage charitable assets and can be a foundation for a Non-Profit or NGO.
Types:
Private Trust: Established for private benefits, such as the management of family assets.
Public Trust: A charitable trust set up for the welfare of the public. In the case of an NGO, a public trust might manage resources for the social good and be accountable to government regulations for its activities.
Purpose: The primary objective of a trust is to manage and protect assets for specific beneficiaries, which could be individuals or a group of people, often in a charitable context.
Structure: In a public trust, the trustee manages assets and funds according to the trust deed, with a focus on transparency and accountability to the public or donors.

Differences between NGO and Trust:

Legal Framework: An NGO can be a registered society or a nonprofit company, while a trust is a legal entity created through a trust deed.
Focus:
NGOs typically engage in wide-ranging activities, including advocacy, policy changes, and service delivery.
Trusts generally focus on managing funds or assets for the benefit of beneficiaries, often in a charitable or philanthropic context.
Governance:
NGOs often have boards that guide strategic decisions, and are held accountable for both legal compliance and social impact.
Trusts are managed by trustees who must comply with the terms set out in the trust deed, which may limit their scope of operation.
Key Elements of Both:
Non-Profit: Both NGOs and Trusts are set up with the aim of serving a cause rather than generating profit for personal gain.
Accountability: Both require transparency in how funds are raised and used, typically through audits and annual reports.

NGO Registration

An NGO (Non-Governmental Organization) can be registered as a Society, Trust, or Section 8 Company under Indian law. The procedure varies based on the type of NGO. Below are the steps for the most common types of NGO registration.

(a) Trust-Based NGO Registration:

Follow the steps mentioned above under “Trust Registration.“

(b) Society Registration (under the Societies Registration Act, 1860):

1.Select a Name:

Choose a name for your society that is not similar to any existing society or trademark.

2.Prepare Memorandum and Rules & Regulations:

A Memorandum of Association (MOA) and Rules & Regulations must be drafted.
The MOA should list the objectives, while the Rules & Regulations will cover the management, governance, and operational procedures of the society.

3.Form the Governing Body:

A minimum of seven members (individuals) are required to form a society.

4.Register the Society:

Submit the documents, along with the names, addresses, and photographs of the governing body members, to the local Registrar of Societies.

5.Documents Required:

MOA and Rules & Regulations.
Identity proof (e.g., PAN card, Aadhar card) of the governing members.
Address proof of the registered office.

6.Pay the Registration Fee:

Pay the required registration fee (varies by state).

7.Obtain the Registration Certificate:

After approval, a registration certificate will be issued.

8.Apply for PAN and Bank Account:

Apply for PAN and open a bank account in the name of the NGO.

(c) Section 8 Company (under Companies Act, 2013):

1.Choose a Name:

The name of the company must end with “Foundation,” “Association,” or “Society.”

2.Apply for Name Approval:

File the application for name approval with the Registrar of Companies (RoC).

3.Draft Memorandum and Articles of Association:

Create the MOA and AOA, which specify the goals, objectives, and operational procedures of the NGO.

4.Form the Board of Directors:

A minimum of two directors are required.

5.Apply for Registration with RoC:

Submit the application, including the MOA, AOA, identity and address proofs, and the form for company registration.

6.Documents Required:

MOA and AOA.
Proof of identity and address of directors.
Passport-sized photographs of directors.
Registered office address proof.

7.Obtain Section 8 Certificate:

If approved, the company will be registered as a Section 8 company with the RoC.

8.Obtain PAN and Bank Account:

Apply for PAN and open a bank account.

Additional Steps for All NGO Types (Post-Registration):

1.Filing for Tax Exemption (optional but recommended):

12A Registration: For tax exemptions, NGOs can apply for 12A registration with the Income Tax Department.
80G Registration: To allow donors to claim deductions on donations made to the NGO.
FCRA Registration (if applicable): For receiving foreign donations, FCRA registration is required.

2.Maintain Proper Accounts:

NGOs are required to maintain books of accounts and submit annual reports to the government.

3.Comply with Other Regulations:

Follow any other specific legal or regulatory requirements as per the nature and location of your NGO/Trust.

Trust Registration

A Trust is typically set up with the intention of performing charitable, religious, or educational activities. The registration process is governed by the Indian Trusts Act, 1882. Here’s how to register a Trust:

Step-by-Step Process for Trust Registration:

1.Select a Name:

Choose a unique name for your Trust that isn’t already in use or trademarked.

2.Prepare Trust Deed:

A Trust deed is a legal document that outlines the objectives, the trustee details, and the rules of the Trust.
It must include:

The name of the Trust.
The names and addresses of the settlor(s) (those establishing the Trust) and trustees.
The objectives and purpose of the Trust (e.g., charity, education).
The rights and duties of trustees.
The manner of appointment and removal of trustees.

3.Appoint Trustees:

A minimum of two trustees is required. These could be individuals or entities, and they will be responsible for managing the Trust.

4.Register the Trust Deed:

Take the signed Trust deed to the local Sub-Registrar Office where it will be registered. Both the settlor(s) and trustees must be present for this process.
The Trust deed must be signed in front of a registrar and two witnesses.

5.Documents Required:

Original and two copies of the Trust deed.
Proof of identity and address of the settlor(s) and trustees (e.g., Aadhar card, PAN card, utility bills).
Passport-sized photographs of the trustees.

6.Pay Stamp Duty:

The Trust deed must be executed on a non-judicial stamp paper.
The stamp duty amount depends on the state in which the Trust is being registered.

7.Obtain the Registration Certificate:

Once the Trust deed is registered, the registrar will issue a registration certificate.

8.Apply for PAN and Bank Account:

Obtain a Permanent Account Number (PAN) for the Trust.
Open a bank account in the name of the Trust for financial transactions.

We Provide the Best NGO/Trust Registration Services

Starting an NGO or Trust requires careful planning, proper documentation, and legal compliance. Our team offers comprehensive services to guide you through the entire registration process smoothly and efficiently.

Our Services Include

Consultation: Understanding your goals and guiding you on the best structure for your NGO or Trust.
Legal Documentation: Drafting and filing necessary documents, including the Trust Deed or Memorandum of Association (MOA) and Rules & Regulations.
Tax Exemptions: Assistance in obtaining tax exemptions under Section 12A and 80G of the Income Tax Act (where applicable).
Registration: We handle the entire registration process with the relevant authorities, ensuring timely and accurate submissions.
Compliance and Ongoing Support: Help with annual filings, audits, and ensuring ongoing compliance with regulatory requirements.

Why Choose Us?

Expert Knowledge: Years of experience in NGO/Trust registration and legal advisory.
End-to-End Services: From consultation to final registration, we manage everything.
Cost-Effective: Transparent pricing with no hidden charges.
Quick Processing: We ensure the timely submission and approval of your registration.
Personalized Approach: We tailor our services to your unique vision and mission.

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