What Are The Legal Requirements For Starting A Non-Profit Organization In India

In India, you can register a non-profit organization under the Indian Trusts Act, 1882, the Indian Societies Registration Act, 1860, or the Companies Act, 2013. The specific legal requirements for starting a non-profit organization can vary depending on the type of registration chosen.

Requirements For Starting A Non-Profit Organization In India

Here is a more detailed explanation of the legal requirements for starting a non-profit organization in India:

1. Choose a name. Ensure the name is not already registered with the Registrar of Societies. Avoid using words prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950.
2. Choose a governing body. Choose a governing body to manage the affairs. The governing body can be in the form of a board of trustees, managing committee, or board of directors. The members of the governing body should be of sound mind. This is not disqualified under any law, and should not have any financial interest in the such organization.
3. Prepare a Memorandum of Association (MOA) and Rules and Regulations. All members of the governing body must prepare and sign the MOA and Rules and Regulations. The Rules and Regulations should contain the rules and regulations for the functioning of the organization.

Attestation

1. Get the documents attested: The MOA and Rules and Regulations should be attested by a notary or an advocate.
2. Register the organization: You can register a non-profit organization under the Indian Trusts Act, 1882, the Indian Societies Registration Act, 1860, or the Companies Act, 2013, depending on the chosen registration type. The registration process involves submitting the MOA, Rules and Regulations, and other required documents to the Registrar of Societies, Registrar of Trusts, or Registrar of Companies, along with the registration fees.
3. Apply for 12A and 80G certification: This type of organizations can apply for 12A and 80G certification. This provides tax exemption for donations made to the organization. Apply for 12A certification within a year of registering the non-profit organization. Apply for 80G certification after obtaining 12A certification.
4. Open a bank account: Once you register the organization, open a bank account in its name.

Conclusion

Note that legal requirements for starting a this business vary by the state of registration. It is advisable to seek the help of a legal expert or a professional to understand the specific legal requirements and procedures for starting a non-profit organization in India.