Step-by-Step Process to Register an NGO Trust Society

A trust is governed by the Indian Trusts Act, 1882, while a society is registered under the Societies Registration Act, 1860. The key difference lies in structure: a trust requires a minimum of two trustees and is created through a trust deed, whereas a society needs at least seven members and operates through a memorandum of association and bye-laws. Trusts are typically used for charitable purposes like education or healthcare, while societies are more common for cultural, scientific, or literary activities. Both can apply for tax exemptions under Section 12A and 80G of the Income Tax Act, but the registration process differs. For trusts, registration is done with the local sub-registrar, while societies register with the Registrar of Societies in the respective state.

To register a trust, you need a trust deed executed on non-judicial stamp paper, the value of which varies by state. The deed must include the trust's name, registered office address, objectives, details of trustees (minimum two), and the settlor's declaration. Supporting documents include identity proof (Aadhaar, PAN) and address proof of all trustees, along with proof of the registered office (rent agreement or ownership documents). For a society, you need a memorandum of association signed by at least seven members, bye-laws, and similar identity and address proofs. Both require a declaration of the NGO's charitable purpose, which must align with Section 2(15) of the Income Tax Act. All documents must be notarized or attested by a gazetted officer.

Step 1: Choose a unique name for the trust that does not resemble any existing trust or violate the Emblems and Names (Prevention of Improper Use) Act, 1950. Step 2: Draft the trust deed on non-judicial stamp paper, specifying the trust's name, address, objectives, trustees, and settlor. Step 3: Execute the trust deed by signing it before a notary public or sub-registrar. Step 4: Submit the trust deed to the local sub-registrar's office for registration, paying the applicable stamp duty and registration fee. Step 5: Obtain a certified copy of the registered trust deed from the sub-registrar. Step 6: Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the trust from the Income Tax Department. Step 7: Open a bank account in the trust's name using the registered deed and PAN.

Step 1: Form a governing body with at least seven members, including a president, secretary, and treasurer. Step 2: Draft the memorandum of association, which includes the society's name, objectives, registered office address, and details of the governing body. Step 3: Prepare bye-laws covering membership, meetings, and financial management. Step 4: Submit the memorandum and bye-laws to the Registrar of Societies in your state, along with identity proofs and address proofs of all members. Step 5: Pay the registration fee, which varies by state (typically between Rs. 50 to Rs. 500). Step 6: After verification, the Registrar issues a certificate of registration. Step 7: Apply for PAN, TAN, and register under the Income Tax Act for 12A and 80G benefits. Societies must also file annual returns with the Registrar.

After registration, you must apply for 12A registration with the Income Tax Commissioner to claim tax exemption on income. This requires submitting Form 10A online along with the trust deed or memorandum, PAN, and financial statements. For 80G registration, which allows donors to claim deductions, file Form 10G. Both approvals are valid for five years initially. Additionally, file annual income tax returns (ITR-7) and maintain audited accounts if income exceeds Rs. 1 lakh. For societies, file annual returns with the Registrar of Societies, including a list of governing body members and financial statements. Trusts must also comply with the Foreign Contribution Regulation Act (FCRA) if receiving foreign funds, requiring separate registration. Non-compliance can lead to cancellation of tax exemptions.

If you are ready to register an NGO as a trust or society, gather the required documents and consult a local lawyer or chartered accountant familiar with your state's registration process. They can help draft the trust deed or memorandum and ensure compliance with the Income Tax Act for 12A and 80G benefits.

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