NGO Formation

Introduction
(NON GOVERNMENT ORGANISATION)
NGO an organization created for non profit/public charitable purpose, profit derived from the activities of organization being used to for the benefit of the public at large/or for promotion of specific community/development of the society or any other activity to promote interest of the public not for the members of the organization. NGO Legal existence in India can be in the Form of:

  1. Formation of Trust.
  2. Society.
  3. Section 25 Companies.

  Classifiaction
  Trust
  Society
  Section 25 Company
  Law
Relevent State Trust Act.
Society Registration Act 1860.
Under Indian Companies Act 1956.
Regsitration
Under Relevant State Trust Act.
Under Society Registration Act 1860.
Under Indian Companies Act 1956.
Document to be Registered
Trust Deed
Memorandum Of Association and rules and regulation
Memorandum of Association And Article of Association
Members
  required
Minimum 2 Members, No upper Limit
Minimum 7 members of themanaging committee
Minimum 3 trustee,
  No upper limit
Tax Structure
Tax Exemption Available
Tax Exemption Available
Tax Exemption Available
Tax Exemption to the Doner
Yes
Yes
Yes
Audit Requirement
Yes*
Yes*
Yes
Time To Register
3 -4 Weeks
  (Approx)
3-4 Weeks
  (Approx)
3-4 Weeks
  (Approx)
Cost Involved
  (All inclusive of   taxes)
Rs 11999**
Rs 11199**
Rs 24999**
 
SUBMIT REQUEST
SUBMIT REQUEST
SUBMIT REQUEST

Includes (PAN +TAN Application), Bank Account Opening, 1 year Corporate Advisory.
Where the Total Income of the Trust or Institution exceeds in any previous year amount which is not chargeable to Tax.

Trust Formation

Trust “ is a transfer of property by the owner to another for the benefit of a third person along with or without himself or a declaration by the owner, to hold the property not for him and another. Section 6 of Indian trusts Act, 1882 provides that a trust is created when the author of the trust indicates with reasonable certainty by any words or acts:-
• An intention on his part to create thereby a trust.
• The purpose of the trust.
• The beneficiary, and
• The trust –property and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transfers the trust-property to the trustee.
Main instrument of trust
The main instrument of any public charitable trust is the deed, wherein the aims and objects and mode of management of the trust should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the should be managed, how other trustees may be appointed or removed etc. The trust deed should be sined by both the settlor\s and trustee\s in the presence of two witnesses. The trust deed should be executed on non- judicial stamp paper, the value of would depend on the valuation of the trust property.
Application for registration
The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.