In India, a non-profit organization can be registered 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.
Here is a more detailed explanation of the legal requirements for starting a non-profit organization in India:
- Choose a name: The name of the non-profit organization should be unique and not already registered with the Registrar of Societies. The name should not contain any words that are prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950.
- Choose a governing body: A governing body should be chosen to manage the affairs of the non-profit organization. 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, not disqualified under any law, and should not have any financial interest in the non-profit organization.
- Prepare a Memorandum of Association (MOA) and Rules and Regulations: The MOA and Rules and Regulations should be prepared and signed by all members of the governing body. The MOA should contain the objectives and powers of the non-profit organization, while the Rules and Regulations should contain the rules and regulations for the functioning of the organization.
- Get the documents attested: The MOA and Rules and Regulations should be attested by a notary or an advocate.
- Register the non-profit organization: The non-profit organization can be registered under the Indian Trusts Act, 1882, the Indian Societies Registration Act, 1860, or the Companies Act, 2013, depending on the type of registration chosen. 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.
- Apply for 12A and 80G certification: Non-profit organizations can apply for 12A and 80G certification, which provides tax exemption for donations made to the organization. The application for 12A certification should be made within a year of the registration of the non-profit organization. The application for 80G certification can be made after the non-profit organization has obtained 12A certification.
- Open a bank account: Once the non-profit organization is registered, a bank account can be opened in the name of the organization.
It is important to note that the legal requirements for starting a non-profit organization can vary depending on the state in which the organization is registered. 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.
