NGO

Empower your noble cause with, navigating legal complexities and ensuring compliance for a positive impact.

ngo

An NGO, which stands for Non-Governmental Organization, is a non-profit organization that operates independently of the government and aims to address social, environmental, or humanitarian issues. NGOs work to promote the well-being of society, advocate for specific causes, and provide services and support to communities in need. They often rely on donations, grants, and volunteers to fund and carry out their activities. NGOs can focus on a wide range of areas such as education, healthcare, human rights, environmental conservation, and community development. Their primary goal is to make a positive impact and bring about meaningful change in society. Learn more about NGO regulations at the NGO Darpan Portal and Section 8 Company guidelines on the MCA website.

how many person are required to form:

To form an NGO in India, a minimum of three individuals is generally required. These individuals can come together and form a governing body or a managing committee to oversee the operations of the NGO. However, it’s important to note that the exact number of individuals required may vary depending on the specific regulations and laws of the state where the NGO is being registered. Additionally, the individuals forming the NGO must have a common objective or purpose for the organization and should be committed to working towards achieving the goals of the NGO.

There are three types of NGO:

  • Trust
  • Society
  • Section 8 Company

1. Trust

A Trust is a legal entity that allows a person or group of people (trustees) to hold and manage assets for the benefit of others (beneficiaries). It is created by a trust deed or agreement, which outlines the purpose, terms, and conditions of the trust. The trustees have a fiduciary duty to manage the trust assets in the best interests of the beneficiaries and in accordance with the trust’s objectives. Trusts are commonly used for various purposes, such as estate planning, charitable activities, or managing assets for minors or individuals with disabilities. Trusts provide a structured framework for asset management, protection, and distribution while ensuring transparency and accountability in the management of entrusted assets.

There are two types of trusts that can be established based on specific purposes and requirements:

1. Private Trust:

A private trust is a type of trust that is created for the benefit of specific individuals or families. It is established by an individual, known as the settlor, who transfers their assets to the trust for the benefit of the trust beneficiaries. The beneficiaries may include family members, friends, or any other designated individuals.

In terms of legality, private trusts are recognized and governed by the Indian Trusts Act, 1882. This act sets out the legal framework for the creation, administration, and dissolution of trusts in India. Private trusts are considered legal and valid entities, provided they comply with the requirements and conditions prescribed by the law.

To establish a private trust, certain legal formalities must be followed, such as the execution of a trust deed, clearly defining the terms and conditions of the trust. The trust deed should specify the settlor, trustees, beneficiaries, and the purpose or objectives of the trust. Additionally, the trust must have a lawful purpose and should not be created for any illegal or fraudulent activities.

Private trusts provide various benefits, including asset protection, estate planning, and ensuring the orderly distribution of assets according to the settlor’s wishes. It is important to seek professional legal advice when creating a private trust to ensure compliance with the applicable laws and to address specific concerns or requirements.

How Many Persons Are Required:

To form a private trust in India, a minimum of two persons are generally required. These individuals include the settlor, who creates the trust by transferring assets, and the trustee, who holds and manages the trust assets on behalf of the beneficiaries.

The settlor is the person who creates the trust and transfers their assets to the trust. They may also be a beneficiary of the trust. The trustee, on the other hand, is responsible for administering the trust and managing its assets in accordance with the terms of the trust deed. The trustee acts in the best interests of the beneficiaries and ensures that the trust’s objectives and purposes are fulfilled.

While two persons are the minimum requirement, it is common to have additional beneficiaries who will benefit from the trust’s assets and provisions. These beneficiaries can be family members, friends, or any other individuals named in the trust deed.

2. Public Trust:

A public trust is a legal entity created for charitable or public purposes, such as education, healthcare, poverty alleviation, or advancement of religion. It is established for the benefit of the general public or a specific section of society. A public trust operates independently and is governed by a trust deed or instrument. Its legality is recognized under the relevant state or central legislation governing charitable and religious institutions. Public trusts enjoy tax exemptions and certain privileges, subject to compliance with regulatory requirements. They are accountable for their activities and must adhere to the laws and regulations governing public trusts to maintain their legal standing and fulfill their charitable objectives.

How Many Persons Are Required:

To form a public trust in India, a minimum of two individuals are generally required. These individuals come together as the trustees who will manage and administer the trust. They have the responsibility to uphold the objectives of the trust and work towards its charitable or public purposes. The trust may also have additional individuals involved, such as beneficiaries or advisors, who play different roles in the functioning of the trust. It is important to note that the exact number of persons required may vary depending on the specific laws and regulations of the state or jurisdiction where the trust is being formed. It is advisable to consult with legal professionals or experts familiar with the relevant laws to ensure compliance with the requirements.

required documents & information:

The following are the documents and information required for the formation of Trust:

  • Trustee and Settler’s Documents:
  • Identity & Address Proof – PAN Card and Aadhar Card/Driving License/Voter ID/Passport of All person
  • Passport Size Photographs
  • Contact Number and Email ID
  • Declaration by all the trustees
  • Witness’ Documents:
  • Identity & Address Proof – PAN Card, Aadhar Card, Driving License, Voter ID, Passport of All person
  • Passport Size Photographs
  • Registered Office’s Documents:
  • Utility bills like Electricity bill, Telephone bill or Water bill
  • Rent Agreement and No Objection Certificate from Owner of Property, if it is rented
  • Drafting of Trust Deed and its registration:

  • Name and Objective of Trust

  • Trust Deed specifies the rules and regulations of trust. It serves as legal proof of its existence

  • Physical Presence of Settler and all Trustees with Original ID Proof at the time of Registration

  • Physical Presence of Two witnesses with original ID Proof at the time of Registration

Note: It is advisable to comply with the provisions of the Indian Trusts Act, 1882 and seek professional legal advice while establishing and administering both public and private trusts to ensure compliance with applicable laws and regulations.

2. Society

A society, in the context of Indian law, refers to a voluntary association of individuals who come together for a common non-profit purpose, such as promoting art, culture, education, charitable activities, or any other social cause. A society is governed by the Societies Registration Act, 1860, which provides a legal framework for the formation, registration, and functioning of societies. Societies are typically managed by a governing body or managing committee and are required to maintain proper records, comply with legal obligations, and operate in accordance with their stated objectives and rules. Societies play a crucial role in promoting social welfare and contributing to the betterment of society.

In India, there are broadly two types of societies:

1. State Level Society:

A State Level Society refers to a society that operates at the state level within a particular state in India. It is registered under the Societies Registration Act, 1860, and has its headquarters or principal place of business within the boundaries of that state.

State Level Societies are typically established to undertake activities or initiatives of broader significance that encompass multiple districts or regions within the state. These societies may focus on areas such as education, healthcare, agriculture, rural development, cultural promotion, or any other social or developmental cause.

State Level Societies often work in collaboration with the state government, local authorities, and other stakeholders to implement programs, projects, and initiatives that aim to address specific issues and contribute to the overall development and welfare of the state and its people.

How Many Persons Are Required:

To form a State Level Society, a minimum of seven persons is typically required as per the Societies Registration Act, 1860. These persons may come together with a common objective or purpose and collectively establish the society. The individuals involved in forming the society may include members who will serve as office bearers or governing body members responsible for managing the affairs of the society.

It’s important to note that the exact requirements and composition may vary based on the specific laws and regulations of the state in which the society is being formed. It is advisable to consult the respective state’s Societies Registration Act or seek legal advice to ensure compliance with the specific requirements for forming a State Level Society in a particular state in India.

2. National Level Society:

According to Indian law, a National Level Society is a society that operates on a national scale and is formed to carry out activities or initiatives of national significance. It is registered under the Societies Registration Act, 1860, and functions across multiple states or regions within the country. A National Level Society may be established by a group of individuals or organizations with a common objective or purpose that extends beyond the boundaries of a single state. It operates under a governing body or executive committee responsible for managing its affairs and implementing its programs and projects at the national level. The specific requirements and regulations for forming and operating a National Level Society may vary based on the state laws and guidelines governing societies in India.

How Many Persons Are Required:

The exact number of persons required to form a National Level Society in India may vary depending on the specific state laws and regulations governing societies. Generally, a minimum of ten or more individuals or organizations may come together to form a society at the national level. These individuals or organizations typically need to meet the eligibility criteria and fulfill the necessary documentation and registration requirements as per the Societies Registration Act, of 1860. It is important to consult the specific state laws or seek legal advice to determine the precise requirements for forming a National Level Society in a particular state in India.

required documents & information:

The following are the documents and information required for the formation of Society:

  • Members’ Documents:
  • Identity Proof – PAN Card and Aadhar Card/Driving License/Passport of all members
  • Address Proof – Bank Statement, Utility Bill like Electricity bill, water bill, or telephone bill
  • Contact Number and Email ID
  • A declaration by the president of the proposed society that he is willing and competent to hold the said post.
  • Registered Office’s Documents:
  • Utility bills like Electricity bill, Telephone bill or Water bill
  • Rent Agreement and No Objection Certificate from Owner of Property, if it is rented
  • Drafting Memorandum of Association:
  • Name of Society
  • Address of Registered Office
  • Objectives of Society
  • List of Members who govern the society
  • Rules and regulation of Society

Note: Compliance with applicable laws, regulations, and financial transparency is essential for societies to ensure adherence to the guidelines set by the Indian government.

3. Section 8 Company

According to Indian law, a Section 8 Company is a type of non-profit organization that is established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other beneficial objective. It is formed under Section 8 of the Companies Act, 2013, and is registered with the Ministry of Corporate Affairs. A Section 8 Company is prohibited from distributing profits to its members and must utilize its income and assets solely for the promotion of its objectives. It is subject to certain regulations and compliances to ensure its operations align with the specified charitable or not-for-profit purposes.

There are two types of Section 8 companies:

1. Private Limited Section 8 Company:

A Private Limited Section 8 Company is a type of nonprofit organization that is incorporated as a private limited company under the provisions of the Companies Act, 2013, and also holds a license under Section 8 of the Act. This type of company is formed with the objective of promoting charitable, social, or educational activities and operates on a not-for-profit basis. The company may receive donations, grants, and funds for its activities but is not allowed to distribute profits among its members. The liability of the members is limited to the extent of their contributions to the company.

How Many Persons Are Required:

To form a Private Limited Section 8 Company in India, a minimum of two persons is required. These persons can be individuals or corporate entities. Additionally, there is no maximum limit on the number of members or shareholders in a Section 8 Company. However, at least two directors must be appointed for the company. These directors can also be shareholders or members of the company. It is important to note that the number of members and directors may vary during the course of the company’s existence, but the initial requirement is a minimum of two persons to incorporate the company.

2. Public Limited Section 8 Company:

In India, a Public Limited Section 8 Company refers to a type of company that is incorporated under Section 8 of the Companies Act, 2013. It is formed with the primary objective of promoting charitable or non-profit activities for the benefit of the public. A Public Limited Section 8 Company can have more than seven members, and there is no maximum limit on the number of members or shareholders. The company must have at least three directors. It enjoys the benefits of limited liability, similar to other public limited companies, while also fulfilling the social and philanthropic objectives outlined in its memorandum of association.

How Many Persons Are Required:

To form a Public Limited Section 8 Company in India, a minimum of seven persons are required as subscribers to the memorandum of association. These subscribers can be individuals or corporate entities. Additionally, the company must have at least three directors to oversee its operations and governance. It’s important to note that the exact number of members and directors can vary depending on the specific requirements of the company and the provisions of the Companies Act, 2013. It is advisable to consult with legal and corporate professionals to ensure compliance with the applicable laws and regulations when establishing a Public Limited Section 8 Company.

required documents & information:

The following are the documents and information required for the formation of Section 8 Company:

  • Directors/Shareholders’ Documents:
  • PAN Card of all person
  • Identity & Permanent Address proof – Aadhar Card/Driving License/Passport/Voter ID of all person
  • Residential Address Proof – Bank Statement, Utility Bill like electricity bill, water bill, telephone bill (not older than 2 months)
  • Passport-sized photographs of all person
  • Contact details of all person
  • Registered Office Documents:
  • Proof of registered office address (rent agreement, electricity bill, etc.)
  • No-objection certificate from the owner of the registered office premises
  • Utility bills like electricity bills, water bills, or telephone bills (not older than two months).
  • Directors/Shareholders’ Declaration and Information
  • Proof of Qualifications and Occupation
  • Duration of Stay at a present residential address
  • Personal Mobile and Email ID
  • Memorandum of Association (MOA) and Articles of Association (AOA):
  • MOA, which defines the company’s objectives, scope of business, and relationship with shareholders and stakeholders
  • AOA, which outlines the company’s internal rules, regulations, and governance structure
  • Directors' Details and Declarations:
  • Details of directors, including their names, addresses, qualifications, and occupation
  • Declaration of compliance with the provisions of the Companies Act, 2013
  • Digital Signature Certificates (DSC) of the Directors
  • Documents for Foreign Nationals/NRIs, if he/she want to become Director/Shareholder in Indian Company:
  • Identity Proof – Copy of Passport
  • Address Proof – Driving License, Residence Card, or any government-issued identity proof
  • Passport Size Photograph
  • All documents should be apostilled or notarized
  • If the documents are in another language than English, a notarized or apostilled translation copy is also needed to attach

Note: Section 8 Companies must comply with the regulations and guidelines set forth by the Indian government, ensuring proper utilization of funds, adherence to charitable objectives, and transparency in operations.

How Vizttax Can Assist: Seamless Solutions for Socially Driven Entities

Vizttax provides expert guidance and support in establishing and managing NGOs, including trusts, societies, and Section 8 companies. Our services cover the entire lifecycle of an NGO, from registration to compliance and ongoing management. We assist in drafting legal documents, filing necessary registrations, maintaining statutory records, and ensuring compliance with relevant laws and regulations. Additionally, we offer strategic advice on fundraising, financial management, governance, and operational efficiency. With our expertise and experience, we help NGOs navigate the complexities of legal and regulatory requirements, enabling them to focus on their social impact and mission.

Here’s how Vizttax can help:

  • Expert guidance: Vizttax offers expert guidance and advice to individuals and organizations interested in establishing NGOs, including trusts, societies, and Section 8 companies.
  • Registration assistance: We assist clients in the registration process, helping them understand the requirements and documentation needed for registration under the respective laws governing trusts, societies, and Section 8 companies.
  • Compliance support: Our team ensures that NGOs remain compliant with applicable laws and regulations by assisting in the filing of necessary documents, maintaining statutory records, and fulfilling annual compliance requirements.
  • Legal document drafting: We help in drafting essential legal documents such as trust deeds, memorandum of associations, articles of associations, bylaws, and other necessary agreements required for the establishment and functioning of NGOs.
  • Strategic advice: Vizttax provides strategic advice on fundraising, financial management, governance, and operational efficiency to help NGOs maximize their impact and sustainability.
  • Ongoing management support: We offer ongoing support and assistance in managing the administrative and regulatory aspects of NGOs, allowing organizations to focus on their core activities and objectives.

Frequently Asked Questions:

A Section 8 Company is a non-profit organization established for promoting charitable objectives. Vizttax provides comprehensive support in its formation and management, including legal compliance, documentation, and advisory services.

Key benefits include tax exemptions, limited liability, and access to funding. Obligations include maintaining proper records, conducting regular meetings, and ensuring utilization of income for charitable purposes.

Vizttax assists in the formation of trusts, including drafting trust deeds, registration, and compliance with legal requirements. We also provide ongoing support in trust management, financial reporting, and regulatory compliance.

Vizttax can assist in setting up various types of trusts, such as public charitable trusts, private trusts, educational trusts, religious trusts, and healthcare trusts, among others.

Vizttax offers comprehensive support in society formation, including registration, drafting bylaws, governance structure, and compliance with legal obligations. We also provide ongoing advisory services for effective society management.

More Under Business Setup in India:

Other Services:

Direct Call:

+91 85069 16831

Book A Call Back:

Catalysts for Positive Impact

Unlocking Opportunities For Social Good

..Specialized Services for Section 8 Companies, Trusts, and Societies Drive Meaningful Change.

Call At +91 85069 16831