Trust/NGO/Society
Registration of NPOs/ NGOs (Not-for-Profit or Non-Government Organizations)
Organizations which are independent of government involvement are known as non-governmental organizations or NGOs. NGOs are a subgroup of organizations founded by citizens, which include clubs and associations which provide services to its members and others.
They usually take form of
- Trust
- Society/ NGO
These are explained below:
According to “The Indian Trust Act, 1882”, a trust is an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.
- A trust must be created for any lawful purpose.
- The subject matter must be property transferable to beneficiary instead of merely giving beneficial interest.
- Every person who is eligible to make contracts can create a trust with the permission of principal civil courts or original jurisdiction.
- Trust deed on stamp paper
- 2 passport size photo and self-attested copy of proof of identity of settler and each trustee (Aadhaar card, Voter id, passport).
- Proof of registered office address of the trust (Electricity Bill, Water Bill)
- Name clause: Under this clause, the name of the company is specified. The person needs to select the name as per the Companies Act, 2013. Just keep in mind the company name should not be identical to any of the existing companies.
- Registered Office Clause: This clause helps in determining the state of jurisdiction of the Registrar of Companies.
- Object clause: This clause clearly defines the object of the company. The object includes all the activities that will be carried out under the name of the company.
- Liability clause: An important clause that clearly states the liability of shareholders. Each member and the shareholder need to agree to the limit of liability.
- Capital clause: This clause defines the maximum number of shares the company can issue in the market.
- Article of Association (AOA): This defines the set of rules and regulations for the management team of the company. Every person related to the company has to follow the guidelines.
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Society/ NGO
As per “The Societies Registration Act,1860”, a society/ NGO is an entity that consists of group of individuals that unite for a common purpose such as promotion of science, literature, fine arts, social welfare and social development. Societies are generally formed for the promotion of charitable causes, such as education, art, and culture without financial gain.
- It is a separate legal entity
- Minimum seven persons are required.
- Purpose of creation must be for society welfare
- Certified copy of duly passed resolution for registration of society
- Declaration of President of society
- Id proof of members
- Address proof of members
- Cover letter of society, signed by all founders