NGO Registration in Chennai

A NGO is a law fully established association created by natural or legal individuals that functions individually from any government. Also known as Non-profit organizations or NPO. A NPO is an organization that does not allocate its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples of NPOs comprise charities (i.e., charitable organizations), trade unions, trade associations & public arts organizations.

Non-profit organizations in India (a) exist individually of the state; (b) are self-governed by a board of trustees or managing committee/ governing council, containing individuals who generally serve in a important capacity; (c) produce benefits for others, usually external the membership of the organization; and (d), are non-profit-making, in as much as they are forbidden from distributing a monetary residual to their own members.

Whether a trust, society or section 8 company, the Income Tax Act gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors to non-profit organizations may claim a rebate against donations made. Foreign donations to non-profits are governed by FC(R)A regulations and the Home Ministry. Formation & Registration of a Non -Profit organizations in India.

1. Trust
2. Society
3. Section 8 Company

Charitable Trust Registration in Chennai

A public charitable trust is usually floated when there is property involved, especially in terms of land and building. Validity extends only in original state it was registered in. The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. A trust needs a min of 2 trustees; there is no limit for max number of trustees. It is exempted from Income Tax only in the state registered & 80G is applicable.

The instrument by which trust is created is called as Trust Deed. Though it is not compulsory for trusts to enter into arrangement, subsequently trusts can be formed even by oral communication excluding in case of trust with immovable property which is required to be created by an instrument in writing. It is essential to get the deed registered under the Income Tax Act for availing the exemptions such 12A, 80G etc., and more over a deed is a evidence of the existence of a trust.

Contents of a Trust Deed

1. Name(s) of the author(s)/settler(s) of the trust.
2. Name(s) of the trustee(s).
3. Name(s) of the beneficiary ,if any
4. Proposed name of the Trust
5. Place where it’s principal and other offices shall be situated.
6. The property that shall devolve upon the trust for the benefit of the beneficiary.
7. The objects of the trust.
8. The manner of appointment, removal or replacement of a trustee, their rights, duties and powers etc.
9. The rights and duties of the beneficiary

Procedure for Formation
A Trust might be confirmed whichever by will or by a non-testamentary instrument named as Trust Deed. A Trust in relation to immovable property can be created also by transfer of ownership of that property to the trustee.

A Trust can be created by any of the following ways:

1. Instrument of Trust Deed
2. Creation by Will
3. Creation by Transfer of Property

Trust Deed
A trust declared by the acts of the parties is to be supported and evidenced by Creation of instrument in writing and signed by the author of the trust and the trustee (i.e. trust deed). There is no recommended form of a trust Deed. Any words which indicate the intention of the author that the property of which he is the legal owner, shall beneficially be anther's is sufficient. A trust in relation to an immovable property must be supported by a trust deed, unless it is declared by a will, and must be registered.A trust declared by a non-testamentary instrument comes into effect from the date specified in the instrument or the date of its execution, where the date is not specified.

A trust can be created by words but in such cases it is necessary to prove that there was either an express declaration as to the trust or that there is evidence of language or expressions used by or facts and conduct of the owner of the property to indicate with reasonable certainty that trust was created. Thus to eliminate ambiguity & disputes, it is always advisable to generate a trust by a written trust deed.

As Trust deed is non mandatory requirement, the registration so is not statutorily required but it is always desired. A registered trust deed has the following advantage.

1. A registered trust deed is an official document enforceable by law.
2. A registered deed effectuates transmutation of possession. The registration of trust deed, in the absence of an intention to the contrary, is enough to convey the title to the trust property to the trustee even if the trust deed is not delivered to the trustee.
3. A conveyance of the trust property to the trustee, under a registered deed is generally, not open to challenge, except where there is no intention to act upon the deed.

A person may declare his intention to create a trust in respect of his property or any part thereof by way of a will. A will according to the Indian Succession Act must be in writing and signed thereof by all testators in presence of witnesses.

A trust in relation to moveable property can be formed also by transfer of ownership of the property or the trustee with a direction that the property be held under trust for the benefit of the beneficiary. The ownership of a moveable property can be transferred by physical act of handing over the possession of the property. In case where the author himself is the trustee, transfer of possession is neither necessary nor possible and mere declaration of the author that he holds the property under trust would be sufficient to constitute a trust.

Society Registration in Chennai
The subsequent societies can be registered under the Act,charitable societies, orphan funds or societies recognized at the numerous presidencies of India, societies recognized for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or built-up to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.

The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined. A Society needs a minimum of seven managing committee members. A society cannot have chapters (branches) outside state it is registered, although members could be from anywhere in India.

1. The main documents in formation of a society are Memorandum of Association and Rules and Regulations.
2. Minimum seven people are required to form a society. There is no upper limit on the number of members.
3. The designations of the members can be decided among themselves. Usual designations are President, Vice-Present, Secretary, Joint-Secretary and Treasurer etc. These members are collectively called the Governing Body. They directs and controls the functioning of the society. All the members of society are elected for a specific period, after expiry of this period; it can filled through elections in which members of the Governing Body take part.
4. Unlike trusts, societies function only within a specified geographical area. To make an all India level society, you would need at least eight members (of which five should be from different states of India).

Contents of a MOA

1. Name of the Society. (It should be confirmed with the registrar before finalizing).
2. Place of Situation registered office
3. Names, designations, addresses and occupations of the members of first governing body
4. Objectives of the society (It should be specific).
5. No stamp paper is required for MOA.
6. Related people (i.e. belonging to the same family) cannot be part of the governing body.
7. Members of the Governing Body cannot draw any remuneration from the society funds. While executing their duties as members, expenses incurred by the members of the Governing Body can be reimbursed from the society funds.
8. Income of society is exempted from tax under Section 80G and 12A of Income Tax. (I.e. the donor will not have to pay tax on the amount donated by him). For Availing 12A and 80G need to apply with Income Tax department and get certification for the same.

Section 8 Company Registration in Chennai

1. According to Section-8 of Indian Companies Act, 2013 (Old section 25(1)(a) & (b) of the Indian Companies Act, 1956, a section-25) a section 8 company can be recognized for encouraging commerce, art, science, religion, charity or any other useful object, provided the profits, if any, or other income is applied for promoting the objects of the companies& no dividend is paid to its members.
2. Section-8 companies are registered under section 8 of Indian Companies Act 2013 (old section-25 of the Indian Companies Act, 1956).
3. For a section-8 company, the main instrument is a Memorandum& articles of association (no stamp paper required)
4. A section-8 Company needs a minimum of three members; there is no upper limit to the number of members. The Board of Management is in the form of a Board of directors or managing committee.
5. An application has to be made for availability of name to the registrar of companies, which must be made in the prescribed form INC-1, together with a fee. It is suitable to advise a choice of 3 other names by which the company will be termed, in case the first name which is proposed is not found satisfactory by the registrar.
6. Once the availability of name is confirmed, an application should be made in writing to the regional director of the company law board. The request must be accompanied by the ensuing documents; 3 printed or typewritten copies of the memorandum & articles of association of the proposed company, duly signed by all the promoters with full name, address & occupation. 
7. A statement by an advocate or a chartered accountant that the MOA & AOA have been drawn up in conformity with the requirements of the Act & that all the requirements of the Act & the rules made there under have been duly obeyed with, in respect of registration or matters incidental or supplementary thereto.
8. Three copies of a list of the names, addresses & occupations of the promoters (& where a firm is a promoter, of each partner in the firm), as well as of the associates of the planned board of directors, together with the names of companies, associations & other organizations in which such promoters, partners & members of the projected board of directors who are the directors or who hold accountable positions with description of the positions so held. 
9. A declaration presenting in particulars of the assets (with the estimated values thereof) & the liabilities of the association, as on the date of the application or within 7 days of that date
10. An estimation of the forthcoming annual income & expenditure of the anticipated company, laying down the sources of the income & the objects of the expenditure. 
11. A declaration giving a brief explanation of the work, if any, already done by the association & of the work projected to be done by it after registration, in pursuance of section-8.
12. A declaration which specify briefly the grounds on which the application is submitted.
13. A declaration by each of the persons making the application that he/she is of sound mind, not an undischarged insolvent, not convicted by a court for any offense &is not disqualified under Companies Act 2013, for appointment as a director.
14. The applicants necessity also provide to the registrar of companies (of the state in which the registered office of the proposed company is to be, or is situate) a copy of the application & each of the other documents that had been filed before the regional director of the company law board.
15. The applicants should also, within a week from the date of making the application to the regional director of the company law board, publish a notice in the prescribed manner in a newspaper in the principal language of the district in which the registered office of the projected company is to be located or is located & circulating in that region, & at least in an English newspaper circulating in that region.
16. The director might, after in view of the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, & after consulting any of the authority, department or ministry, as the one may in their discretion decide &determine whether the license should or should not be granted.
17. The directors shall also instruct the company to include in its memorandum, or in its articles, or in both, such conditions of the license as may be specified in this behalf.