NGO is non-governamental organisation.
FORMATION OF NGO
A Non Governmental Organisation (NGO) is perceived to be an association of persons or a body of individuals. Such body with a definite name and objective may be a registered one or unregistered one. Legal character is acquired only after registration (incorporation) of the association of persons under any of the applicable laws.
Applicable Laws
An association of persons with non profit motive may be registered under any of the following Indian Acts:
As a Charitable Trust
As a Society under the Societies Registration Act
As a licensed company under section 25 of the Companies Act, 1956
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Formation of an NGO as a Trust
Section 3 of the Indian Trusts Act defines “trust” as an obligation annexed to the ownership of property, and arising out of a confidence reposed in an accepted by the owner or declared and accepted by him for the benefit of another, or of another and the owner. According to Section 7 of the Indian Trust Act, a trust may be created by
(a) every person competent to contract and (b) by or on behalf of a minor.
Trust Deed
The instrument by which the trust is declared is called the ‘instrument of trust’ or more popularly as the ‘trust deed’.
Contents of a Trust Deed
A trust may be created by any language sufficient to know the intention and no technical words are necessary. A trust deed, generally, incorporates the following:
The name(s) of the author(s)/Settler(s) of the trust;
The name(s) of the trustee(s);
The name(s) if any, of the beneficiary/ies or whether it shall be the public at large;
The name by which the trust shall be known;
The name where its principal and/or other offices shall be situate;
The property that shall devolve upon the trustee(s) under the trust for the benefit of the beneficiary/ies;
An intention to divest the trust property upon the trustee(s);
The objects of the trust;
The procedure for appointment, removal or replacement of a trustee, their rights, duties and powers, etc.;
The rights and duties of the beneficiary/ies;
The mode and method of determination of the trust.
Registration
In case of public charitable trusts, whether in relation to movable property of any immovable property and whether created under a will or inter vivos, registration is optional but desirable. However, in case of a charitable trust in relation to an immovable property, for claiming exemption u/s 11 of the Income Tax Act, it is essential that the instrument of trust is duly registered.
Registration of Trust Deed under Indian Registration Act
An instrument assigning any right, title or interest in an immovable property of value exceeding Rs.100, is required to be registered under the Registration Act, 1908. Thus, a trust deed involving an immovable property must be registered.
Registration of Trust under Public Trusts Act
A charitable trust is not required to obtain registration under the Indian Registration Act. However, in certain States like Maharashtra and Gujarat there is a Public Trusts Act, which requires such institutions trusts to get registered as such under the said Act.
Laws Applicable to Trusts
Charitable and Religious Trusts Act, 1920
Religious Endowments Act, 1863
Indian Trusts Act, 1882
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FORMATION OF AN NGO AS A SOCIETY
An NGO may be formed as a society. A society may be defined as a company or an association of persons (generally unincorporated) united together by mutual consent to deliberate, determine and act jointly for same common purpose.
As per the Societies Registration Act, 1860, (see Annexure 2, VI), a society can be formed by minimum seven (or more) persons, eligible to enter into a contract, for any of the following purposes:
Grant of Charitable assistance;
Creation of military orphan funds;
Promotion of science, literature or the fine arts; instruction and diffusion of useful knowledge, diffusion of political education, foundation or maintenance of libraries or reading rooms for general use of the members or the public, public museums and galleries of paintings and other work of art, collections of natural history, mechanical and philosophical inventions, instruments or designs Besides, the State Governments are empowered to add more objects to the above list.
The chief advantage of forming a society are that it gives a corporate appearance to the organisation, and provides greater flexibility as it is easier to amend the memorandum and bye-laws of the society that in case of a trust, terms of which are strictly manifested in the trust deed. However, formation of a society requires more procedural formalities than in case of a trust.
Documents Required
A society for its inception requires –
Memorandum of association, an
Rules and regulations.
Memorandum of Association
It is the charter of a society. Memorandum of association depicts and describes the objects of a society’s existence and its operation. This document should be drafted carefully and meticulously as to confer all powers on the society which will be reasonably required for total attainment of the objects. A specimen format of Memorandum of Association of a Society is given in Annexure 2.VII.
The memorandum of association contains the following clauses:
The name of the society
The registered/principal office of the society.
The objects of the society
The names, addresses and occupations of the members of the governing body whether called as Governors, Councilors, Directors, etc., to whom, by the rules of the society, management of its affairs is entrusted, and
The names and addresses of the persons (at least seven) subscribing to the memorandum. The signatures of the subscribers should be duly witnessed and attested by the Oath Commissioner/Notary Public/Gazetted Officer/Advocate/Chartered Accountant/Ist Class magistrate.
Rules and Regulations
The rules and regulations of a society are framed to guide the members of the governing body and to regulate the functions of the society and its internal management.. The rules and regulations generally provide for:-
The conditions of admission of members,
The liability of members for fines, forfeitures under certain circumstances;
The termination of membership by resignation or expulsion or upon death;
The appointment and removal of trustees and their powers;
The appointment and removal of the members on the governing body;
The requirement as to notice, quorum etc. for holding meetings and passing resolutions;
The investment of funds, keeping of accounts and for audit of accounts;
The manner of altering the objects and rules;
The matters to be provided in bye-laws;
The dissolution of society and the manner of utilizing the property upon dissolution;
Such other matters as may be thought expedient with reference to the nature and objects of the society.
The bye-laws of the society are subsidiary to the rules and regulations and usually provide for:
The business hours of the society;
The activities of the society in furtherance of its objects;
The matters relating to enrolment of members, their removal, rights, applications and privileges,
The manner in which the society shall transact its business;
The mode of custody, application and investment of the funds of the society and the extent and conditions of such investment;
The arrangements for day-do-day transactions, the expenditure to be incurred therefore, the staff to be employed and condition of services of such employees;
The conduct of the general meetings and the procedure therefore;
Such other matters incidental to the organisation and working of the society and the management of its business, as may be deemed necessary.
Registration Procedure
When a NGO is constituted as a society, it is required to be registered under the Societies Registration act, 1960. After the Memorandum and Rules and Regulations of the society have been drafted, signed and witnessed in the prescribed manner, the members should obtain the registration of the society.
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FORMATION OF A NGO AS A COMPANY LICENSED UNDER SECTION 25 OF THE COMPANIES ACT
Under Section 25 of the Companies Act, 1956 (see Annexure 2, XII), an association formed or to be formed:
For the purposes of promoting commerce, art, science, religion, charity or any other useful object.
With intention to apply its profits or other income for promoting its objects, and
Which prohibits payment of any dividend to its members, is permitted to be incorporated without addition of the word “Limited” or “Private Limited”.
Procedure for obtaining a license u/s 25 of the Companies Act
For obtaining a license u/s 25 of the Companies act, an association shall follow the following steps:
First, the name availability has to be ascertained from the Registrar of Companies.
After deciding on the name of the proposed association or company, memorandum of association (MOA) and Articles of Association (AOA) are to be drafted.
Apply to the jurisdictional Registrar of Companies for incorporation of the company, along with Memorandum and articles, prescribed forms and other documents.
If the Registrar is satisfied that all formalities have been complied with, he will issue a Certificate of Incorporation from which date the company comes into existence.
For further infomation please visit this site
http://www.nposonline.net/start_ngo.shtml#ngo
this is data base for ngo's in India.= envfor.nic.in/ngo/ngo-list.html
2006-09-27 08:32:04
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answer #1
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answered by americandreamboy4u 3
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You already get the meaning of NGO.
now tell me where r u from?
you don't know what is NGO, but you like to start ur own NGO, mean u saw anywhere to making money in the 3rd world country through NGO is very easy.
boy, learn more about NGO, its not easy to earn easy money. to get foreign donation, u need to do many things.
u need to do or planning to do at least, some development work for your society, people,a nd country.
best answer of you question is:
FOR NGO REGISTRATION, CONTACT YOUR GOVERNMENT CONCERN MINISTRY/DEPARTMENT/DIRECTORATE.
Only they can provide u what will u need exact to do so.
it varried country to country.
2006-09-27 09:38:57
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answer #4
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answered by asru 3
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