NGO Formation & Registration

Forming and registering a Non-Governmental Organization (NGO) involves several steps, each of which ensures the organization is legally recognized and can operate effectively. Below is a general outline of the process for NGO formation and registration

1. Define the Purpose and Structure of the NGO

Mission and Vision: Determine the specific goals your NGO will pursue (e.g., education, healthcare, poverty alleviation, etc.).

Legal Structure: Decide on the organizational structure, such as:

• Trust: A group of individuals working together for a charitable purpose.
• Society: An association of people working for a common interest or purpose.
• Non-profit Company: A company limited by guarantee, often used for NGOs that need more formal governance.

2. Choose a Name for the NGO

Uniqueness: The name should be unique and not similar to any other registered organization in the country.

Check Availability: Verify the availability of the name with the relevant registration authority (e.g., a governmental body or registrar of companies).

3. Prepare the Required Documents

The exact documentation may vary by country, but typically includes:

• Constitution or Memorandum of Association: This document outlines the organization's objectives, operational rules, and governance structure.
• Bylaws: Rules that define how the organization will operate, including the duties of board members, election procedures, etc.
• List of Founding Members: Names and signatures of individuals who are starting the NGO.
• Address Proof: The physical address of the NGO's registered office.
• Identity Proof: Identification documents of the founding members or board of directors.
• No Objection Certificate (NOC): Sometimes required from local authorities, especially if the NGO operates in a particular region or area.

4. Apply for Registration

Depending on the country, registration processes may vary:

• In India: The NGO can be registered under the Societies Registration Act, Indian Trusts Act, or as a Section 8 Company (Non-profit company) under the Companies Act.
• In the US: NGOs can register as a 501(c)(3) non-profit organization with the IRS to obtain tax-exempt status.
• In the UK: NGOs can be registered as Charitable Incorporated Organizations (CIOs) or Charities.

The registration process typically involves submitting:

• The Constitution and Bylaws.
• Application forms and fees.
• Personal identification documents of the founders.
• Proof of address.

5. Obtain Tax-Exempt Status (if applicable)

If your NGO will be offering tax-deductible receipts to donors or wishes to benefit from tax exemptions, apply for tax-exempt status from the relevant authorities (e.g., the IRS in the US or the Charity Commission in the UK). This may require a separate application, often accompanied by detailed financial and operational documents.

6. Set Up Governance and Operations

• Board of Directors: Appoint a governing board (a minimum of three people is common).
• Operational Policies: Establish internal policies, such as financial management procedures, employment rules, and fundraising practices.
• Open Bank Accounts: Set up a bank account in the NGO’s name for managing funds.

7. Comply with Ongoing Legal and Regulatory Requirements

• Annual Filings: Most countries require annual filings or reports to maintain registration and compliance with local regulations.
• Audits: Some jurisdictions mandate regular audits or financial reviews.
• Annual General Meeting (AGM): Hold AGMs to discuss the organization’s activities, finances, and future plans.

8. Fundraising and Operations

• Fundraising: NGOs can raise funds through donations, grants, or other fundraising methods. Ensure compliance with local regulations on fundraising.
• Programs and Activities: Begin implementing your NGO’s programs based on the objectives outlined in your mission statement.

Example of Process in India

• Choose the type of NGO (Society, Trust, or Section 8 Company).
• Draft a Memorandum of Association (MOA) and Rules & Regulations.
• Submit the registration application to the relevant authority:
• For a Society, apply to the Registrar of Societies.
• For a Trust, apply under the Indian Trusts Act.
• For a Section 8 Company, register with the Ministry of Corporate Affairs.
• Apply for PAN (Permanent Account Number) for the NGO and open a bank account.
• Apply for 80G and 12A certificates to get tax exemptions for donations.