As a Trust (See how to register a trust) As a Society As Section 25 Company
Of these three, trust and society are the most popular and easiest way of doing social work. I have written a separate article on difference between a trust and society. Some people feel confused between a trust and a foundation, so I have an article about this as well. In India, societies are governed by a central act called Societies Registration Act, 1860. All the states in India have adopted this act (with or without modifications) to create authorities at state level that register non-profit societies.
The main documents in the registration of a society are Memorandum of Association (MOA) and Rules and Regulations (RR). These two documents are written/printed/typed on plain papers. Minimum seven people are required to form a society. There is no upper limit on the number of members. These members have various designations that can be decided among themselves. Common designations are President, Vice-Present, Secretary, Joint-Secretary and Treasurer etc. These members are collectively called the Governing Body. This body directs and controls the functioning of the society. All the members of society are elected for a specific period (which should be mentioned in the MOA). After expiry of this period; the post is filled through elections in which members of the Governing Body take part. Because of the involvement of election process –societies are more democratic than trusts. But at the same time –power struggle and politics may also creep in as drawbacks. In case of societies, through election politics, it is possible to remove the person who had initiated the society in the first place. Unlike trusts, societies function only within a specified geographical area. To make an all India level society, you would need at least eight members (of which five should be from different states of India) The Memorandum of Association must mention: Name of the Society Address of the registered office Names, designations, addresses and occupations of the members of first governing body Objectives of the society No stamp paper is required for MOA and RR Most important part of the MOA that you should pay attention to is objectives. You should be as thorough as possible in writing down objectives so that you can function smoothly without any problems. Related people (i.e. belonging to the same family) cannot be part of the governing body. Members of the Governing Body can not draw any remuneration from the society funds. While executing their duties as members, expenses incurred by the members of the Governing Body can be reimbursed from the society funds.
Society income is exempted from tax. For this, after registration, you need to acquire a certificate from the Income Tax Department. This certificate is called 12A Donations to the society are also exempted from tax (i.e. the donor will not have to pay tax on the amount of donation). For this, you need to acquire 80G certificate from Income Tax Department. Getting 80G and advertising that you have this certificate does encourage donors because they get tax benefit on donation. Usually lawyers and practicing CAs can help you in registration of society –but I guess a lawyer is better person if you need help in formulating your MOA and RR. CAs don’t know the nitty-gritty of the legal stuff. If you can write MOA and RR on your own –and sure that you have done a good job –then all you need is help of a notary who will take your papers and prepare them for the presentation before the registrar. After registration, for acquiring 12A and 80G certificates you may need to take services of a practicing CA. They charge hefty fee for these services. NGOs are for social work. You are not expected to draw any benefits from NGO.
If you need more information regarding the process of registration of society NGOs in India, you may comment on this article. I will see if I can help you with more information. I hope this article was useful for you. Thank you for using TechWelkin. We have an NGO registered in Nagaland. We want to change the President of the Society as he is not in a position to continue( move out of the State). I understand that through a Resolution of a General Body meeting, we can change. But do we need to inform/intimate the change to the concern department of the State Government, IT Office and Home Ministry as we have 12A, 80G and also FCRA . Kindly let us know at the earliest. Thank You for all the valuable informations Now I want to work for other organizations which are honest and dedicated. I can spend my all time for social cause and I am not alone to do this so but I have my group of 10 youths. We all want to contribute our time for society. We need some organizations which can make good use of our time and dedication if any one requires human resource please contact me. 91 90 86 60 39 04 I Would like to know if an NGO can sell products of other brands to raise funds? Like selling at retail price while purchasing at wholesale price? Is there any other way of selling things to earn profit for NGO? It is difficult to ask for donation again and again as there are so many competitors in NGO, Why would anyone donate or take interest? An NGO can do business and income up to Rs. 10 lakhs is exempted from income tax. But I am not really sure if you can do an unrelated business under the banner of an NGO. You should consult a lawyer about it. If there is no 12A certificate, how much money can be received in society’s bank account in one year without tax? Kindly help. Greetings of the Day! I need some help with Trust Registration. Can I register a trust when I don’t own any property and my objectives will be towards environment, plantation etc. I’ve been reading your blog and I’m under an impression now that trusts etc. are meant for education related functions specifically. I want to register an entity where I & my friends can work towards environment, trees, plantation, greenery, Cleanliness etc. Would appreciate your help! How can we start International NGO for the promotion of social cause, education or sports in India with a registration process in New Delhi. Currently am running a partnership firm. Its a security guard agency. Can I make a partnership firm in to a society? Can I change my security agency into a society? Kindly reply ASAP. I am reside in south Delhi. I share my spare time for the social welfare as a part time on weekend basis on lowest rate or free of cost as suitable. If anyone help me Pl call me Vinit Goyal M-9999426498 Thanks Firstly, can NGO be run without registering under Societies Act? If yes, what disadvantages are there for not getting registered? If no, why? Secondly, how many years make one term for governing body before the next election? Thank You. Your invaluable information on the subject NGO is commendable. I have been running a private school for the last 2 years in a rural area. There has been a good response from the people around. I am more interested in teaching at the primary level. I have invested a lot my time, energy, knowledge and yes money of course. However, to have more investment, I strongly feel a good funding is very much require. So, I am seriously planning to start an NGO to help me in this mission to be achieved fully. I would like to know how can this dream be achieved. Truly and humbly speaking… no intention for any profit. Please advise. Moyon My question is if it is necessary to have an SC / ST / Women / OBC among the members? We have one federation, All India Taekwondo Federation register in 1985 in Delhi Society Act. But not renewal from last many years , and now we need to change complete management and start again so we need register again or older one is ok or it can renew. And now what’s the fee for registration. Thank & Warm Regards Bhumi We want to start a society with the word International in the name. Is it possible? What needs to be done. Can you explain me the procedure to withdraw my name from a NGO. Due to personal reason i am unable to continue the post of Secretary which I was holding last 10 years. Do we need to submit any form, pass resolution and where to apply for withdrawal and what needs to be done? Thanks in advance Sukanyaramesh Also, is it mandatory for my NGO to be registered under National Trust Act first before registering this group as a society or there is no such compulsory clause? Any help on this topic would be really great for us! Thank you. Regards, Amit Myself and few others are inclined to Register a Public Trust in Mumbai for imparting educations at various level right from Jr. K.G. The name of the Trust, we intent to have would be in the name of prominent Public legend/personality like Mahatma Gandhi.
- Whether this Trust is also required to be Registered under the Societies Act, 1880
- How can we use the name of Public legend/Prominent personality, is it necessary to have permission. If yes, kindly specify the manner or draft format for permission. Your guidance in this regard is humbly solicited please oblige. Thanks, ganesan thank and regards Narender Thank you so much for providing valuable information and I really appreciate. At present, I am NRI, I intend to provide education at lower cost for rural people by forming up a society. I wantedto know if NRI can be part of governing body ( President or vice president) or trust. Raj I want to register a society with the name XYZ foundation, but when i meet the registrar , he said foundation word is not applicable. Is it right? If , yes please suggest , what would be the best suited name? I am from Nagpur,Maharashtra. I am a Civil Engineer cum Govt. Road contractor working with Govt. departments like MAHAPWD,NMC National Highways etc. I am interested in forming an NGO that will work for educating people about Road safety and awareness about traffic rules. also I wish to inform people of India about importance of discipline in life through seminars,short films etc. In short I wish to make my people disciplined. For this purpose I wish to set up an NGO. Please guide me that can an NGO with such kind of motto be formed? I am from Nagpur,Maharashtra. I am a Civil Engineer cum Govt. Road contractor working with Govt. departments like MAHAPWD,NMC National Highways etc. I am interested in forming an NGO that will work for educating people about Road safety and awareness about traffic rules. also I wish to inform people of India about importance of discipline in life through seminars,short films etc. In short I wish to make my people disciplined. For this purpose I wish to set up an NGO. Please guide me that can an NGO with such kind of motto be formed? Thank you so much for the information! I am left with the below mentioned queries now!! Please guide!
- Who all can be the part of governing body? Can govt. employees working with Public Sector banks or any other govt employee be one of the seven members of governing body?
- If one person wishes to open an ngo, then how is that person remunerated? In case, where the governing member is also an active worker of the Ngo. Regards Apoorva Government employees are allowed to be trustees and governing body members but they MUST NOT draw any benefit from such association. Also, the objectives or the organization must not be in conflict with the stand of government. For example, a government employee would be in trouble if he joins an NGO to protest against government’s policies. As for remuneration, well, NGOs are for social work and not for drawing benefits from it. Nevertheless, trustees are allowed to take reasonable remuneration from the trust funds. I had a question from the 12th point : “Members of the Governing Body can not draw any remuneration from the society funds.” So how they receive wage/salary for the service. Eg : Old Age home, members working for it. Regards Prakash Kind regards Nitin Charbe waiting for your replay Regards Nitin Charbe Everything I know has been written in my article. Please read it. Lalit There is no particular method to check reliability of a NGO.