Society, Trust and NGO

Non-governmental Organization (NGO)'s are the non-profit making institutions incorporated under the government's rules and regulations to work for common people.

Non Profit making institutions are primarily divided into three categories -

• Trust
• Society
• Private nonprofit making company or the NGO

NGO and Trust registration is essential in order to operate them as a legal entity as per the rules and regulations. All those charitable organizations those are working as NGO's are registered under the Section 25 of the Companies Act. There are different kinds of Trusts or NGO's in India and all over the world with their long standing work record for helping poor people in diverse of sectors.

In India there are broadly four types of NGOs that are operating -

• National NGO
• International NGO
• Community based NGO
• City based NGO

NGO Registration Process in India

NGO registration is a process and one should follow the complete rules and regulations as per the Indian Companies Act.

In India non-profit organizations can be registered as trusts, societies, or a private limited company, under Section-25 of Companies Act. Non-profit organizations are always self-governed by a 'board of trustees' or 'managing committee' comprising individuals who generally serve in a fiduciary capacity.

In order to register such an organization, the basic requirements include

• A registration form, that is available without charge at the district registrar's office
• A memorandum of association and rules and regulations of the organization
• Consent letters of all the members of the managing committee. A minimum of seven members comprise a managing committee
• Authority letter duly signed by all the members of the managing committee
• Copy of rules and regulations certified to be a correct copy of original rules and regulations by at least three managing committee members
• A declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society
• In case any government servant holds elective office, previous sanction of the government (concerned minister) is needed

Registration procedure

All the documents mentioned above are required to be submitted in duplicate, together with the required registration fee. Except for mahilamandals, registration fee for all NGOs is Rs 50. Mahilamandals are required to pay a registration fee of Rs 10.

Upon receiving the set of documents, the registrar's office issues a certificate to the society once the verification procedure is complete. While filing the registration papers, it is important to bear in mind that a society by the same name is not already registered in the state.

Renewal procedure

All registered NGOs have to get their certificate of registration renewed after every five years. For the purpose of renewal, the managing committee members need to fill a renewal of certification of registration form (available at the registrar's office), along with:

A fee equal to the registration fee if the NGO's registration period had not run out

An additional fee of Rs 25 if the application is filed within one month of the date of registration expiration date

An additional fee at the rate of Rs 5 per month if the renewal application is filed after one month of the registration expiration date