How to Form a NGO in India

Can you tell me how to form a Non-governmental organization (NGO) in India as I want to start a one with my friends as we want to do something good for the people of India?

According to rules in India the non profit and charitable entities are registered as societies, trusts, and private limited non profit companies or Section 25 companies.

The non profit organizations operate independently from government control and are normally governed by a board of trustees, governing council or managing committee that is made up of people who operate in fiducially roles.

These organizations normally help ones who are not its members. They can also be deemed as non profit making as they are not permitted to provide their members any form of financial benefits.

Start own NGO in India

Step 1: Conceptualization

The first step is to lay down the issues that NGO wants to address, and identify the mission and vision.

Step 2: Forming the Governing Body

Before registering the organization, one needs to have a governing body in place that is responsible for all activities and decisions of the organization.

The governing body is involved in all matters of strategic relevance, including strategic planning, financial management, human resources and networking.

Step 3: Formulation of Byelaws

Every NGO in India is legally required to document a trust deed/ Memorandum of Understanding/ byelaws that contain the name and address of the NGO, mission and objectives, details of governing body members, human resource and staffing information, rules and regulations, administrative laws and procedures.

Step 4: Registration

In India, one may register an NGO under any of the following Acts:

Indian Trusts Act: A Charitable Trust is not legally obliged to obtain registration; unless the Trust wants to claim income tax exemptions or is based in a state that is governed by the Public Trusts Act, such as Maharashtra.

Societies Registration Act: A society can be formed by a group of seven or more people. Its formation is more complicated than that of a trust, but it also affords more flexibility in terms of regulations.

Companies Act: An association that is formed for the promotion of art, science, commerce, religion or charity can be registered as a company but its members cannot be paid a dividend. All profits should be utilized for furthering the objectives of the company.

Step 5: Fundraising

Funds can be raised through internal sources (membership fees, sales, subscription charges, donations, etc.) or grants-in-aid from the Government, private organizations or foreign sources. Inflow of foreign funds is governed by the Foreign Contribution Regulation Act (FCRA) 1976.

Many NGOs are eligible for tax exemptions - be sure to check eligibility status and file application if the exemption applies.

Besides meeting the above mandatory requirements, one needs to build a wide professional network with other NGOs, Government agencies, media and the corporate sector.

Like most other organizations, an NGO thrives primarily on the strength of partnerships.

__________________
Answered By StudyChaCha Member