NGO Formation

NGO Formation The word “NGO” is an abbreviation of Non-Governmental Organization, identical with Non-Profit Organizations, which primarily work towards social, cultural, economic, educational or religious causes. NGOs have made positive contributions for the development of weaker sections of the society. It is significant to note that all NGO, irrespective of their legal status, may acquire funds from not only an individual, firm or organization of their own country, but also from abroad under provisions of The Foreign Contribution (Regulation) Act, 1976.The NGO can be formed and organized as any one of the below explained entities:

  • Society
  • Trust
  • Non-profit Company

Relative Table based on different entities for formation of NGO

Basis of Distinction

Non-profit Company

Society

Trust

Statute/ legislation

The Companies Act, 1956.

Societies Registration Act, 1860.

Indian Trust Act, 1882 OR Charitable and Religious Trusts Act, 1920.

Jurisdiction

Registrar of Companies.

Registrar of Societies.

Charity Commissioner/ Registrar of Assurances.

Objects

Non-profit activities

Charitable, literary, scientific etc.

Charitable, socially beneficial and religious etc.

Main document

Memorandum and Articles of Association.

Memorandum and Rules and regulations of the Society.

Trust Deed.

Formation

Complex legal procedure as compared to society and trusts.

Simple and easy.

Simple and easy.

Number of members required

Minimum two and no upper limit.

Minimum seven and no upper limit.

Minimum two and no statutory limit.

GIIS Financial offers the following services towards formation, execution and running of a NGO in India:

  1. Drafting of Memorandum and Articles of Association, Memorandum and Rules and Regulations and Trust Deed of a Company, Society and Trust respectively;
  2. Registration of NGO with the Registrar of Companies, Registrar of Societies or with the Registrar of Assurances as the case may be;
  3. Maintenance of minutes book in respect of meetings of board of directors and members of NGO, and other statutory records and registers;
  4. Filing of returns, reports other necessary documents, as the case may be from time to time as per provisions of the governing statute;
  5. Providing legal advice in respect of matters pertaining to registration, establishing and running of an NGO;
  6. Representing the NGO before governing authorities etc;
  7. To obtain necessary approval and/ or registration with the Central Government and compliance with the provisions of the Foreign Contribution (Regulation) Act, 1976 for accepting foreign contribution from a foreign source;

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