How to Start an NGO in India

One of the most powerful options for a person desiring to bring about a change in Indian society is to set up an NGO. Be it the case of education, health care, women's rights, environmental protection, or social welfare (community development), the very act of founding as well as acquiring recognition as an NGO assists in promoting these activities in terms of both law and order. 

But the process of setting up an organization like this necessitates compliance with the law, formal registration, and well-defined records. This step-by-step manual is a departure from the traditional forms to get off point: It tells how to start up an NGO in India, the various types of registration for NGOs, and legality in terms of registration requirements, document preparation, and full disclosure. 

1. Understanding the Types of NGOs in India

Types of NGOs in India

Indian NGOs can register under three Acts depending on the organization’s goals, operational needs, and budget:

a) Trust (Public Charitable Trust)

• A Trust is provided for charitable work like education, medical aid, and public welfare.

• Governed by: Indian Trusts Act, 1882

• Ideal for: Smaller groups, family-led charities

b) Society

• A Society is formed for literary, scientific, charitable, or cultural purposes.

• Governed by: Societies Registration Act, 1860

• Requires: Minimum 7 members

• Ideal for: Official groups and associations

c) Section 8 Company

• Formed under the Companies Act, 2013, this is one of the most well-organized types of NGO.

• Subject to approval from the Ministry of Corporate Affairs

• More donor and international funding credibility

• Ideal for: Major NGOs, CSR funding, international partnerships

2. Step-by-Step Process to Start an NGO in India

Here’s a complete breakdown of how to start an NGO legally:

Step 1: Define your Mission and Vision

Before getting into the document preparation, it is important to be clear about:

• What is your NGO’s issue focus?

• Who will it help?

• What are your long-term goals?

A strong mission statement leads to registration, fundraising, and credibility.

Step 2: Choose the Right Type of NGO Structure

Choose between Trust, Society, or Section 8 Company depending on:

• Number of founding members

• Funding requirements

• Geographical area of operation

• Long-term expansion plans

Step 3: Select an Exclusive Name

Your NGO name must:

• Not violate trademark rules.

• Not be another NGO like the others.

• Not contain government-related terms such as "India," "National," or “Commission” (without approval).

Step 4: Prepare NGO Documents

On the basis of the type of NGO, keep the following documents ready:

For Trust:

• Trust deed

• ID/address proofs of trustees

• Registered office address proof

For Society:

• Memorandum of Association (MoA)

• Rules & Regulations

• Identity proofs of members

For Section 8 Company:

• MoA & AoA

• PAN, Aadhaar of directors

• Digital Signature Certificate (DSC)

• Director Identification Number (DIN)

Step 5: Drafting of the Legal Deed/Constitution

The following aspects are defined in the governing document of every NGO:

• NGO objectives

• Governance structure

• Member roles

• Operational rules

This manual is required for opening a Bank Account, obtaining 80G/12A registration, and compliance.

Step 6: Register the NGO with Appropriate Authority

Registration depending on the type of NGO is carried out with:

• Trust: Sub-Registrar Office

• Society: Registrar of Societies

• Section 8 Company: Ministry of Corporate Affairs

After submission, the documents are verified by the authority and a registration certificate is issued.

Step 7: Apply for PAN, TAN, and Bank Account

Once the NGO is registered, you should apply for:

• PAN Card

• TAN (Tax Deduction Account Number, if applicable)

• Bank account in the name of the NGO

These are required to receive donations or grants.

3. Mandatory Legal Compliance After Starting an NGO

a) Obtain 12A & 80G Registration

• 12A: Offers exemption from income tax.

• 80G: Allows donors to claim tax deductions.

These increase donor confidence and financial credibility.

b) FCRA Registration (For Foreign Funding)

If your NGO receives funds from international donors, FCRA approval is required from the Ministry of Home Affairs.

c) Annual Compliances

Depending on the NGO structure:

• Trusts: File annual returns and maintain accounts.

• Societies: Submit audit and annual reports.

• Section 8 Companies: ROC compliances, board meetings, annual returns.

Conclusion

How to Start an NGO in India: Starting an NGO in India is a clear and easy process, there are many options to choose from (such as GRO, Trust or association) with the availability of funds and there is no dividends being distributed. Further 12A, PAN & 80G registrations together with the GST registration are what NGOS would need

By reading this article which is a detail guide on the process of setting up an NGO in India you will have learned how to start an NGO in India and ensure it has a solid ground for impact.

Frequently Asked Questions

1. How can I check whether my NGO has registered with the government?

Comply with your NGO by filing annual returns, having 12A/80G certificates, following FCRA norms, and hiring compliance management services for easing the operations.

2. How can I fundraise to grow my NGO?

Fund your NGO organization through crowdfunding, corporate partnerships, government grant submissions, and high-profile fundraising events.

3. Can NGOs generate income?

Yes, NGOs can be paid for through donations, grants, and service work, but all surplus needs to go back into charitable work.