NGOs are charitable avenues that work for the betterment of society. The NGOs in India can act as a Trust or Society or Section 8 company depending on their objectives and scope of operation. All these structures are governed by different legislation, namely- the Indian Trusts Act, 1882, The Societies Registration Act, 1860, and the Companies Act, 2013, respectively. Apparently, NGOs willing to register under any of these legislations have to serve different legalities and paperwork requirements. In this write-up, we will look into the registration aspect and drill down the details to be included in the application letter for NGO registration. <\/p>\n\n\n\n
Charitable avenues in India have the\nleverage to get registered under anyone of the following legislation;<\/p>\n\n\n\n
Trust deed shall act as an application letter for NGO registration<\/strong><\/a>. Unlike section 8 companies, there is no requirement for a separate form filing for Trust registration<\/strong><\/a>. Once the deed is prepared, the applicant needs to visit the registrar of the respective state for the deed approval. <\/p>\n\n\n\n Trust Deed: Mandatory Inclusion<\/em><\/strong><\/p>\n\n\n\n Objects: This clause specifies the object\nof the trust for which it intends to come into effect. Once registered, the\ntrust cannot perform any activities that fall beyond the scope of the\nunderlying object.<\/p>\n\n\n\n Acceptance of Funds:<\/strong><\/p>\n\n\n\n The trust can accept grants, aids,\ndonations, and subscriptions from any individual, Government or any other charitable\navenues, in cash or in the form of an immovable asset without any charge on it.\nThere is a prohibition on fund procurement that does not fit the trust’s\nobject.<\/p>\n\n\n\n Investments:<\/strong> It is the liability of the trustees to\nadminister the trust’s funds efficiently. The funds that are expected to remain\nuntouched in the near future should be invested in banks, Securities, and other\ninvestments to strengthen the trust’s finances.<\/p>\n\n\n\n Power of the Trustees:<\/strong> The trustees are liable to abide by the\nrules cited under the trust deed. Their actions should not fall beyond the\nnorms mentioned in the registered deed. Generally, a trust deed confers the\nfollowing authorities to the trustees.<\/p>\n\n\n\n Accounts and Audit: <\/strong><\/p>\n\n\n\n This clause mandates trustees to\nadminister proper books of accounts, income and expenses of the trust. Further,\nit also specifies the requirement of account auditing via a practising CA.<\/p>\n\n\n\n Winding up: As the name suggests, the winding-up\nclause deals with the rightful closure of the trust. It provides the grounds\nthat ensure the lawful closure of the establishment.<\/p>\n\n\n\n A society or association is a group of\nindividuals that serve a common non-profitable goal. As per the Society\nRegistration Act, any entity willing to operate as a society needs to file an\napplication with the respective registrar along with the documents listed\nbelow.<\/p>\n\n\n\n The details of the application letter for\nNGO registration under the Societies Registration Act, 1860 are as follows;<\/p>\n\n\n\n The said application must be supported by\nthe Rule and regulations of the society that contains the following details;<\/p>\n\n\n\nThe Societies Registration Act,\n1860<\/h3>\n\n\n\n
Section 8 company under the\nCompanies Act, 2013<\/h3>\n\n\n\n