Trust/NGO Registration Services
Ready to make a difference? Check out the guide below to learn about Trust/NGO registration, and see how we can help you get started.
Non-governmental organisations (NGOs) are built by passion for social development, which plays an important role in addressing issues faced by our society. While NGOs can be structured in various ways, registering a Trust offers an authoritative legal framework for achieving your humanitarian goals.
According to the Indian Trust Act, of 1882, the trust is defined as a unique legal arrangement where the “settlor” allocates their assets to a “Trustee” for the benefit of appropriate “Beneficiaries”. This structure followed by the trust makes sure that the assets of the trust are managed responsibly and distributed according to the Settlor's requirements.
Moreover, this structure provides transparency and tax benefits that build trust among the donors and stakeholders. Trusts can help you achieve philanthropic goals, including asset protection, wealth transfer, and tax optimisation.
Advantages of registering a Trust/NGO
Taking the step to register your Trust or NGO is a strategic move that brings in a lot of benefits, setting your organisation on a path toward sustainable growth and impactful social contributions.
Establish a distinct legal identity
Registration provides your organisation with a separate legal identity from its founders and members.
Secure perpetual existence
A registered Trust or NGO can continue its operations uninterrupted even if its founders or members change.
Protection over personal assets
Registration creates a legal separation between the Trust/NGO and its trustees/members, safeguarding personal assets from any liabilities incurred by the organisation.
Avail tax benefits
Trusts and NGOs often qualify for various tax exemptions and deductions, allowing you to allocate more resources directly to your social programs.
Inspire donors' confidence
Formal registration creates confidence among potential donors and funders. It also helps in staying transparent and accountable, making the organisation more credible for support.
Attract talents and resources
Registered organisations often find it easier to attract skilled professionals, volunteers, and resources for their organisation's functions.
Our Services
At Benchmark we provide you with an end-to-end trust registration service that makes sure that your business is legally compliant and has followed a structured registration process so that you get your registration done without any hassle. Our expert services are made to help you establish a trust or an NGO without any regulatory requirements.
Our service offerings for Trust/NGO registration include:
- Creating the Trust Deed or Memorandum & Articles of Association (MOA & AOA) in compliance with the Indian Trusts Act, 1882, or Companies Act, 2013.
- Assistance in selecting a legally compliant and non-conflicting name for the Trust or NGO.
- Advisory on choosing the appropriate structure, Trust, Society, or Section 8 Company, based on the organisation's objectives.
- End-to-end support in filing applications with the Registrar of Trusts, Registrar of Societies, or Registrar of Companies (ROC).
- Preparation and submission of documents, including identity proof, address proof, and proof of the registered office.
- Helping you in obtaining 12A and 80G registration for tax exemptions under the Income Tax Act.
- Guidance on Foreign Contribution Regulation Act (FCRA) registration for organisations receiving foreign funding.
- Advisory on PAN, TAN, and bank account setup for financial operations.
- Support in acquiring applicable government approvals, including NOC from landlords and state-specific licenses.
- Compliance tracking and consultation on post-registration requirements, including annual filings and statutory audits.
Is forming a Trust or NGO right for your entity?
While the Trusts and NGO business structure offers a lot of benefits, it is important to see whether this structure aligns with your organisation's specific goals. If your primary focus with your business or service idea is to generate profits for shareholders, a Trust or NGO may not be the ideal fit. These entities are mainly formed for charity or social welfare purposes. So if your organisation prioritises social impact, community empowerment, and long-term operations, a Trust or NGO structure can provide a strong legal framework.
Hence before you make your decision, consider the nature of your activities, target beneficiaries, governance preferences, and funding sources. If your organisation is driven by positive change, a Trust or NGO can give you the platform to convert your vision into a reality.
How can Benchmark help?
At Benchmark, we don't just process the application; we help your organisation to make a lasting impact. Our team of professionals combine their expertise in finance, legal compliance, and NGO operations, ensuring a smooth and efficient registration process customised to your unique needs.
We go beyond the basics, providing strategic guidance on structuring your Trust or NGO, optimising tax benefits, and establishing strong governance frameworks.
Types of NGOs in India
| Features | Trust | Society | Section 8 Company |
|---|---|---|---|
| Governing Law | Indian Trusts Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 |
| Formation | Trust Deed | Memorandum of Association and Rules & Regulations | Memorandum of Association and Articles of Association |
| Management | Trustees | Governing Body/Managing Committee | Board of Directors |
| Liability | Limited to Trust property | Limited to the extent of members' guarantee | Limited to the unpaid amount on shares |
| Registration Authority | Charity Commissioner or Sub-Registrar | Registrar of Societies | Registrar of companies |
| Flexibility | High | Moderate | Low |
| Credibility | High | Moderate | Low |
| Suitable For | Smaller organisations, family-run initiatives, projects with specific objectives | Medium-sized organisations, membership-based initiatives | Larger organisations, professionalised operations, and projects seeking external funding |
Challenges faced by NGOs/Trusts
While registering your company as an NGO or trust provides a lot of benefits, it is important to be aware of a few challenges faced by NGOs/Trusts in India. So here is a list of challenges you may face as an NGO/Trust.
- Staying ahead of the regulations governing NGOs and Trusts can be challenging.
- Securing sustainable funding can be a challenge for many organisations.
- Maintaining transparency in financial management and operations is important for building trust.
- Due to the limited budgets, attracting and retaining skilled personnel can be difficult.
- NGOs and Trusts operate under public analysis, with expectations of ethical conduct and responsible resource management.
Minimum requirements to register an NGO/Trust
The formation of a Trust in India requires you to follow specific legal guidelines. The following minimum requirements must be met to initiate the registration process of your NGO/Trust in India:
- A Trust requires at least two members to be registered.
- The Trust's purpose must be exclusively dedicated to charitable or social welfare activities.
- All members associated with the Trust must be residents of India.
- A physical address within India must be designated as the Trust's registered office.
Documents required for Trust/NGO registration
The Trust/NGO registration process requires proper preparation and submission of necessary documents. While specific requirements may vary based on the chosen legal structure and state regulations, the following list provides a detailed overview of commonly required documents:
Trust Deed/ Memorandum & Articles of Association
This foundational document outlines the Trust's or NGO's objectives, beneficiaries, governing body structure, operational rules, and procedures for dispute resolution.
Proof of Address and Identity for Trustees/Members
Each trustee/member must provide valid identification and address proofs, typically including:
- PAN Card
- Aadhaar Card
- Voter ID
- Passport
Proof of Registered Office Address
Evidence of the Trust's/NGO's registered office address is important.
- Rental agreement
- Utility bill
- Ownership documents
No Objection Certificate (NOC)
If the registered office is rented or leased, an NOC from the property owner is required, granting permission to use the premises for Trust/NGO activities.
Declaration by Trustees/Members
A signed declaration confirming the authenticity of the information provided and compliance with legal requirements is essential.
Other Necessary Documents
Depending on the specific nature of your Trust/NGO and its activities, additional documents may be required. These may include:
- PAN Card of the Trust/NGO
- Photographs of Trustees/Members
- Proof of Bank Account
- Utility Bills
- Registration Fee Receipt
Registration process
Building a Trust involves a series of legal procedures. We've outlined the key steps involved in the registration process below:
Step 1: Choosing the right legal structure
- NGO (Non-Governmental Organisation): In India, NGOs are normally registered as either Trusts, Societies, or Section 8 Companies under the Companies Act, 2013.
- Trust: A Trust is formed by a Trust Deed executed by the Settlor(s) (person creating the trust), appointing Trustees to manage the trust's property for a charitable purpose.
The choice of the right legal structure depends on the organisation's goals, activities, and desired level of control. Each structure has its own legal and operational rules to follow.
Step 2: Reserving a suitable name
Choose a name that highlights your organisation's mission and doesn't violate an existing trademark. You can apply for name reservation through the Ministry of Corporate Affairs (MCA) portal or the relevant state registrar's website. The MCA's RUN service allows you to check name availability and reserve your chosen name online.
Step 3: Draft the necessary documents
- Trust Deed: For Trusts, draft a Trust Deed outlining the trust's objectives, the powers and responsibilities of trustees, and the rules for managing the trust's property.
- Memorandum of Association (MOA) and Articles of Association (AOA): For Section 8 Companies, prepare the MOA (outlining the company's objectives and powers) and AOA (outlining its internal management rules).
- Bylaws or Rules and Regulations: For Societies, create bylaws or rules and regulations that govern the society's operations.
Step 4: Obtaining necessary approvals and certifications
Obtain an NOC from the landlord or property owner if the registered office is rented or leased. Depending on the nature of your NGO's activities, you may need additional approvals or licences from specific government departments or regulatory bodies.
Step 5: Registration with the relevant authorities
Here are 3 different ways to register your NGO in India.
A. Trust Registration Process
- Identify the appropriate Charity Commissioner or Registrar of Trusts in your state or region.
- Prepare and submit the following documents:
- Duly filled and signed Trust Deed
- Proof of address of the trust's registered office (e.g., utility bill, rent agreement)
- ID and address proofs of the trustees
- NOC from the landlord or property owner (if applicable)
- Any other documents specified by the registrar
- Pay the prescribed registration fee.
- The registrar will go through and verify the application and documents. If everything is in order, they will issue a registration certificate.
B. Society Registration Process
- Identify the Registrar of Societies in your state.
- Prepare and submit the following documents:
- Memorandum of Association (MOA)
- Rules and Regulations
- List of names, addresses, and occupations of the founding members
- Declaration by the President and Secretary of the society
- Proof of address of the registered office
- ID and address proofs of the founding members
- NOC from the landlord or property owner (if applicable)
- Any other documents specified by the registrar
- Pay the prescribed registration fee.
- Once approved, you will get the registration certificate.
C. Section 8 Company Registration Process
- Use the MCA's SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) system to file for incorporation.
- Submit the following documents:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Declaration by the professional
- Proof of address of the registered office
- ID and address proofs of the directors and subscribers
- NOC from the landlord or property owner (if applicable)
- Other e-forms as required (AGILE-PRO, INC-9, etc.)
- All documents must be digitally signed by the directors and subscribers.
- Pay the registration and filing fees.
- The Registrar of Companies (ROC) will review the application and documents and once approved, will provide the registration certificate.
Step 6: Applying for tax exemptions
Once your NGO or Trust is registered, you can apply for tax exemptions to gain benefits under the Income Tax Act, of 1961.
- 12A Registration:
- Available to all charitable or religious trusts and institutions.
- Exempts the income of the NGO or Trust from income tax.
- File Form 10A with the jurisdictional Commissioner of Income Tax.
- 80G Registration:
- Available to NGOs and Trusts engaged in specified charitable activities.
- Allows donors to claim a tax deduction for their contributions to the NGO or Trust.
- File Form 10G with the jurisdictional Commissioner of Income Tax.
Checklist for NGO/Trust Registration
Here is a checklist to consider before you start your Trust/NGO registration process:
- Define your mission and goals explicitly.
- Choose a unique and non-conflicting name.
- Draft a comprehensive Trust Deed or Memorandum & Articles of Association.
- Ensure a minimum number as per regulations.
- Secure a physical address in India.
- Gather identity, address, and NOC proofs, and sign necessary declarations.
- Pay the applicable fee as per the governing act.
Post Registration Compliance
Completing the registration is the initial process, once your Trust/NGO is registered there are other things you have to take care of regularly.
- Maintenance of books of accounts: Trusts and NGOs must maintain proper books of accounts as per accounting standards.
- Annual Filing of Returns: Timely submission of annual returns to the relevant authorities is mandatory.
- Form 10B: For NGOs registered under Section 12A, file Form 10B annually to furnish details of activities and income.
- Statutory Audit: Depending on the Trust's/NGO's income or activities, an annual audit by a qualified Chartered Accountant is required.
Get in Touch
At Benchmark, we believe in the power of social change. Trust and NGO registration is not just a legal formality; it's the first step in building a sustainable, impactful organisation. Our team of experts is dedicated to helping you through the process and maintaining compliance efficiently. Contact us today and let us transform your passion for social good into a registered entity poised for success.
FAQs
How long does the Trust/NGO registration process take?
The timeline varies depending on the chosen structure and the efficiency of regulatory bodies. Typically, it can range from a few weeks to a couple of months.
Can I register a Trust/NGO online?
Yes, online registration options are available for certain legal structures and in specific states.
Can a Trust/NGO engage in commercial activities?
Trusts and NGOs can engage in income-generating activities, but the primary objective must remain charitable or social welfare-oriented.
What is SPICe+ and how is it used for NGO registration?
SPICe+ is an online form used for incorporating Section 8 Companies, helping in name reservation, incorporation, and even post-incorporation compliance.
What is AGILE PRO, and why is it relevant to NGO registration?
AGILE PRO is an online form within SPICe+ that facilitates applying for GST registration, EPFO/ESIC registration, and opening a bank account for your Section 8 Company.