Different Forms of NGOs in India

Overview
Registration
Documents Required – Trust
Eligibility
Documents Required – Society

Non-government organizations in India can be structured and incorporated as one of the following three forms:

Trust
Society
Non-Profit Company under Section 8 of The Indian Companies Act, 2013.

Registration of a Trust

A Trust is formed when an owner of a property (trustor) transfers it to a person who is known as trustee, for the benefit of a third party who is known as beneficiary. There are two types of Trusts- Public Trust and Private Trust. It is governed by Indian Trust Act, 1882 across India.

Documents required for Trust Incorporation

Proof of identity of the shareholder. Such documents include Aadhaar, PAN, Passport, Driving license or any other Government-issued identity document would be required.
Proof of address of the shareholder. Such documents include bank statements, electricity bill, water bill, gas bill and telephone bill.
NOC (Non Objectionable Certificate) from the landlord if the registered office is a leased property.
Proposed registered office’s utility bill which includes EB bill, property tax receipt, water bill copy.
Trust deed on stamp paper.
Scanned copy of Sale deed if the registered office is owned property.

Eligibility/Requirements of Trust Incorporation

Minimum of two trustees.
Forming Trust Deed.

Advantages

Management continues even after the disability of the member.
Better control over assets.
Investment management remains uninterrupted.
Flexibility of using funds.

Disadvantages

High incorporation cost.
Cash can be accessed by creditors.
Not so responsive to changes.
Property has to be reregistered in the name of trust which involves cost.

Documents required for registration of Society

NOC from the landlord if the registered office is a leased property.
In case of own property, copy of sale deed along with the EB bill/property tax receipt/water bill copy of the registered office property.
Proposed registered office’s utility bill which includes EB bill, property tax receipt, water bill copy. (Address proof)
Proof of address of all the directors and the shareholders. Such documents include bank statements, electricity bill, water bill, gas bill and telephone bill.
Proof of identity of all the partners. Such documents include Aadhaar, PAN, Passport, Driving license or any other Government-issued identity document would be required.
Affidavit no. 1 for NOC of registered office and its ownership.
Affidavit no. 2 for name of the society and members not being related to each other.

Registration of a Society

A society is a business done to serve society by group of members and not to earn profits. It is registered as a legal entity under The Societies Registration Act, 1860. It is generally formed for charitable activities.

Eligibility/Registration for registration

The objective shall be legal and for charitable, scientific and literary purpose.
Minimum of 7 members.

Registration of Section 8 company

These are limited companies, which are registered under the Companies Act, and will be treated as limited companies without the phrase “limited” being added to their name. They may have been registered either as “private limited or public limited companies”.

Features/Eligibility of a Section 8 Company

Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object.
It intends to apply all it’s profits, income, or other earnings, in promoting these objects.
Pays no dividend or income to its members.

Requirements of a Section 8 Company

Registration under The Companies Act, 2013 and get licensed.
Minimum 2 directors for Private Limited Company and 3 directors for Public Limited Company must be there.
At least 1 director must reside in India, meaning a person who has stayed in India for a period of not less than 182 days during the immediately preceding 1 financial year.
MOA and AOA.
All directors must have their valid DIN and DSC.
Annual returns, filings and other compliances should be done.