Eligibility Criteria for NGO Trust Society Registration

The basic eligibility requirements for registering an NGO as a trust or society in India depend on the legal structure you choose. For a trust, you need at least two trustees (though some states require a minimum of three), a clear charitable or religious purpose, and a settlor who transfers property to the trust. For a society, you need a minimum of seven members (or five in some states like Maharashtra and Gujarat), a memorandum of association, and a governing body. Both structures require the founders to be Indian citizens or residents, and the objectives must be lawful and not opposed to public policy.

Under the Indian Trusts Act, 1882, a trust can be created for any lawful purpose, including charitable, religious, or educational activities. The settlor must be competent to contract, and the trust property must be identifiable and transferable. For societies, the Societies Registration Act, 1860 governs registration, requiring the society to have a name, a registered office, and a governing council elected by members. The society's objectives must fall under categories like promotion of literature, science, fine arts, diffusion of useful knowledge, or charitable purposes.

Any individual who is a major (above 18 years of age), of sound mind, and not disqualified by law can be a trustee or member. For trusts, trustees must be Indian citizens or residents, though foreign nationals can be trustees if the trust deed permits and they comply with FEMA regulations. For societies, members must be Indian citizens or residents, and at least seven members are required for registration. Minors cannot be trustees or members, but they can be beneficiaries.

The Indian Trusts Act, 1882 specifies that a trustee must be competent to contract under the Indian Contract Act, 1872. This means they cannot be of unsound mind, disqualified by law, or a minor. For societies, the Societies Registration Act, 1860 does not explicitly disqualify anyone, but the society's bylaws typically require members to be adults. Additionally, government servants and public officials may need prior permission to serve as trustees or members, depending on their service rules.

To prove eligibility, you need identity and address proofs of all trustees or members, such as Aadhaar cards, PAN cards, voter IDs, or passports. For trusts, you also need a trust deed signed by the settlor and trustees, along with proof of the trust property (if any). For societies, you need a memorandum of association, rules and regulations, and a list of the governing body members. Both require a registered office address proof, such as a rental agreement or property deed, and a no-objection certificate from the landlord if the office is rented.

The Indian Trusts Act, 1882 requires the trust deed to be in writing and registered with the sub-registrar if the trust involves immovable property. For societies, the Societies Registration Act, 1860 requires the memorandum to be filed with the Registrar of Societies in the state where the society's registered office is located. Additional documents may include affidavits from trustees or members declaring their eligibility and a declaration of the society's objectives.

Yes, the objectives must be lawful, charitable, or religious, and cannot be opposed to public policy or involve illegal activities. For trusts, the purpose must be for the benefit of the public or a section of the public, such as education, healthcare, poverty alleviation, or environmental protection. For societies, the objectives must fall under categories like promotion of literature, science, fine arts, diffusion of useful knowledge, or charitable purposes. Activities that are commercial, political, or aimed at private profit are not allowed.

The Indian Trusts Act, 1882 allows trusts for any lawful purpose, but the Income Tax Act, 1961 provides tax exemptions only for charitable or religious purposes under Sections 11, 12, and 12A. For societies, the Societies Registration Act, 1860 restricts objectives to those listed in the Act, and societies cannot engage in activities that are illegal or against public order. Additionally, NGOs must comply with the Foreign Contribution (Regulation) Act, 2010 (FCRA) if they receive foreign funds, which requires separate registration.

Yes, foreign nationals and NRIs can register an NGO as a trust or society in India, but with certain conditions. For trusts, foreign nationals can be trustees if the trust deed permits and they comply with FEMA regulations. For societies, foreign nationals can be members, but at least one member must be an Indian citizen or resident. NRIs can be trustees or members without restrictions, but they must provide valid identity and address proofs, such as a passport or OCI card.

Under the Foreign Exchange Management Act, 1999 (FEMA), foreign nationals can hold property in India only for specific purposes, and they must obtain prior approval from the Reserve Bank of India (RBI) if the trust involves immovable property. For societies, the Societies Registration Act, 1860 does not explicitly prohibit foreign nationals, but the society's bylaws may require a majority of Indian members. Additionally, if the NGO receives foreign contributions, it must register under FCRA, which has specific eligibility criteria for foreign nationals.

If you meet the basic eligibility criteria, you should consult a qualified professional to draft the trust deed or memorandum of association and file the registration application with the relevant authority. For trusts, this is the sub-registrar's office, and for societies, it is the Registrar of Societies in your state. A professional can also help you comply with tax registration under the Income Tax Act and FCRA if needed.

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This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.