What Is NGO Registration? A Complete Guide for Beginners

NGO registration—start your journey to making a difference

Starting an NGO (Non-Governmental Organization) is a noble way to contribute to social betterment, but to operate legally and access funding, NGO registration is crucial. In India, it's especially important—it provides legal recognition, builds trust, and unlocks financial benefits.

Why Register an NGO?

Registration offers key advantages:

• Legal status—you can open bank accounts, enter contracts, and receive donations.

• Tax relief—donors get benefits under sections 12A and 80G, encouraging contributions.

• Funding opportunities—you become eligible for CSR funds, government grants, and foreign funding (via FCRA registration).
  

Types of NGO Structures in India

There are three main legal forms:

1. Trust: Set up under the Indian Trusts Act, simplest structure, governed by trustees. Suitable for focused charitable purposes. Requires only two members.

2. Society: Registered under the Societies Registration Act, 1860, intended for collective social work. Needs at least seven founding members and a memorandum of association and bylaws.

3. Section 8 Company: Under the Companies Act, 2013, this type offers limited liability, a formal framework, and credibility. Ideal for larger NGOs and easier to secure foreign funding. Requires rigorous documentation like MOA/AOA, DSC, and DIN.
   

Step-by-Step: An Example Using a Real NGO

Take eVidyaloka, a Bangalore-based educational NGO registered as a Trust. It brings volunteer teachers to rural children via technology, operating under a legally registered trust structure.

Simplified Registration Steps:

1. Select Structure: eVidyaloka chose Trust for simplicity and speed.

2. Draft Documents: Prepare a trust deed including name, objectives, and trustee details; sign on stamp paper.

3. Submit Paperwork: File the deed with the Registrar of Trusts.

4. Apply for PAN: Obtain a PAN card in the NGO’s name to open a bank account.

5. Seek Tax Exemptions: Register under sections 12A and 80G for tax benefits.

6. (Optional) FCRA Registration: Apply under FCRA to receive foreign funding—critical for NGOs like eVidyaloka if they tap international donors.
   

Estimated Costs & Timeline

Costs vary by structure and location:

Structure	Estimated Cost (₹)	Typical Timeline
Trust	₹4,000–8,000	15–20 days
Society	₹6,000–12,000	30–45 days
Section 8 Company	₹10,000–25,000 (incl. DSC/DIN)	45–60 days

These cover registration fees, documentation, and professional help.

Quick Recap

• What: NGO registration establishes your organization legally.

• Why: Gives credibility, access to funds, and tax relief.

• How: Choose structure → draft documents → register → obtain PAN → get tax exemptions → (if needed) register FCRA.

• Example: eVidyaloka, registered as a Trust, powers rural education via volunteers.

• Cost & Time: Varies—simpler for trusts, more structured (and costly) for Section 8 companies.