{"id":945,"date":"2025-05-29T00:00:00","date_gmt":"2025-05-29T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/ngo-company\/"},"modified":"2026-06-24T05:12:27","modified_gmt":"2026-06-24T05:12:27","slug":"ngo-company","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/ngo-company\/","title":{"rendered":"NGO Company: Definition, Functions &#038; Registration Process Explained"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">What is an NGO?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An NGO (Non-Governmental Organization) is a non-profit entity that operates independently of government control. These organisations work toward social, cultural, environmental, educational, or humanitarian goals. While they can receive support from government bodies, their operations are autonomous and mission-driven.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In India, NGOs can be registered as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong id=\"\">Trusts<\/strong> (under the Indian Trusts Act, 1882)<\/li>\n\n\n\n<li><strong id=\"\">Societies<\/strong> (under the Societies Registration Act, 1860)<\/li>\n\n\n\n<li><strong id=\"\">Section 8 Companies<\/strong> (under the Companies Act, 2013)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Each type comes with its own legal, operational, and tax implications.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why To Set Up NGOs?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Setting up an NGO provides individuals and groups with a structured platform to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Drive meaningful social change<\/li>\n\n\n\n<li>Support marginalised or underprivileged communities<\/li>\n\n\n\n<li>Promote awareness in education, health, and the environment<\/li>\n\n\n\n<li>Organise charitable events and campaigns<\/li>\n\n\n\n<li>Attract grants and donations for cause-based work<\/li>\n\n\n\n<li>Collaborate with government bodies, corporations, and international organisations<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Most importantly, NGOs create a long-lasting impact by scaling their efforts through organised, transparent, and legally recognised structures.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">NGO Vs NPO<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While the terms NGO and NPO (Non-Profit Organization) are often used interchangeably, there are differences:<\/p>\n\n\n\n<div data-rt-embed-type=\"true\">\n<table>\n<thead>\n<tr>\n<th>Aspect<\/th>\n<th><strong>NBFC<\/strong><\/th>\n<th><strong>Section 8<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Stands for<\/td>\n<td>Non\u2013 Government Organisation<\/td>\n<td>Non\u2013Profit Organisation<\/td>\n<\/tr>\n<tr>\n<td>Purpose<\/td>\n<td>Primarily social or environmental causes<\/td>\n<td>Any activity without a profit motive<\/td>\n<\/tr>\n<tr>\n<td>Scope<\/td>\n<td>Usually broader; includes advocacy &amp; operations<\/td>\n<td>May include cultural, sports, and religion\u2013based work<\/td>\n<\/tr>\n<tr>\n<td>Structure<\/td>\n<td>Maybe a trust, society or Section 8 company<\/td>\n<td>Any entity without profit distribution<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How Does an NGO Work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">NGOs follow a structured approach to fulfil their mission:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong id=\"\">Identifying a Cause:<\/strong> Based on research and community needs<\/li>\n\n\n\n<li><strong id=\"\">Fundraising:<\/strong> Via donations, grants, events, and crowdfunding<\/li>\n\n\n\n<li><strong id=\"\">Project Planning:<\/strong> Setting objectives, timelines, and budgets<\/li>\n\n\n\n<li><strong id=\"\">Implementation:<\/strong> Executing programs via staff or volunteers<\/li>\n\n\n\n<li><strong id=\"\">Monitoring &amp; Evaluation:<\/strong> Measuring impact and reporting outcomes<\/li>\n\n\n\n<li><strong id=\"\">Collaboration:<\/strong> Partnering with donors, corporates, and institutions<\/li>\n\n\n\n<li><strong id=\"\">Governance:<\/strong> Managed by a board or trustees ensuring accountability<\/li>\n<\/ol>\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of NGO Registration<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Registering an NGO offers multiple advantages:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Legal recognition<\/li>\n\n\n\n<li>Eligibility for tax exemptions under Section 12A and 80G<\/li>\n\n\n\n<li>Access to government and international funding<\/li>\n\n\n\n<li>Increased credibility among donors and the public<\/li>\n\n\n\n<li>Easier access to open a bank account<\/li>\n\n\n\n<li>Enhances long-term sustainability<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Eligibility For NGO Registration Online<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To register an NGO online in India, you need:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum <strong id=\"\">2 members<\/strong> for a Trust or Society; <strong id=\"\">3 directors<\/strong> for a Section 8 company<\/li>\n\n\n\n<li>Members must be at least <strong id=\"\">18 years old<\/strong><\/li>\n\n\n\n<li>Indian citizenship (Foreign nationals can be members under certain conditions)<\/li>\n\n\n\n<li>Valid identity and address proofs<\/li>\n\n\n\n<li>Digital Signature Certificates (DSCs) for directors (in the case of Section 8)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How to Register an NGO Online: Step-by-Step Guide<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you&#8217;re starting a non-profit to promote education, healthcare, or social development, registering your NGO gives it legal standing and access to benefits like tax exemptions and grants. Here&#8217;s how to do it for each structure:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong id=\"\">1. Registering a Section 8 Company (Companies Act, 2013)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ideal for NGOs focusing on charitable, educational, religious, or social objectives with a corporate-style structure.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong id=\"\">Get Digital Signature Certificates (DSC):<br><\/strong>Required for signing online forms. Obtain DSC for all proposed directors.<\/li>\n\n\n\n<li><strong id=\"\">Reserve NGO Name:<br><\/strong>Use the <strong id=\"\">SPICe+ Part A<\/strong> form on the<a id=\"\" href=\"https:\/\/www.mca.gov.in\/\" target=\"_blank\" rel=\"noopener\"> MCA portal<\/a> to check availability and reserve your NGO&#8217;s name.<\/li>\n\n\n\n<li><strong id=\"\">File Incorporation Documents:<br><\/strong>Submit:\n<ul class=\"wp-block-list\">\n<li><strong id=\"\">SPICe+ Part B<\/strong> (Main incorporation form)<\/li>\n\n\n\n<li><strong id=\"\">MOA<\/strong> (Memorandum of Association)<\/li>\n\n\n\n<li><strong id=\"\">AOA<\/strong> (Articles of Association)<\/li>\n\n\n\n<li><strong id=\"\">AGILE-PRO<\/strong> (for GST, ESIC, EPFO registrations)<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong id=\"\">Apply for PAN and TAN:<br><\/strong>These are issued automatically with the incorporation process via the same SPICe+ form.<\/li>\n\n\n\n<li><strong id=\"\">Receive Certificate of Incorporation:<br><\/strong>Once approved, you\u2019ll receive your <strong id=\"\">COI<\/strong>, PAN, and TAN\u2014your NGO is now a legal Section 8 company!<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong id=\"\">2. Registering a Trust<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ideal for family-run charitable institutions or those with fewer trustees and simpler operations.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong id=\"\">Draft a Trust Deed:<br><\/strong>Include the trust\u2019s name, objectives, details of trustees, and mode of operation.<\/li>\n\n\n\n<li><strong id=\"\">Get the Trust Deed Notarized and Registered:<br><\/strong>Visit the <strong id=\"\">local Sub-Registrar office<\/strong> with the trust deed and identity\/address proofs of trustees. Pay the applicable stamp duty.<\/li>\n\n\n\n<li><strong id=\"\">Apply for PAN:<br><\/strong>Once registered, apply for a <strong id=\"\">Permanent Account Number (PAN)<\/strong> in the name of the Trust.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong id=\"\">3. Registering a Society<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Commonly used for clubs, cultural groups, welfare associations, and NGOs operating at a state or national level.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong id=\"\">Draft Memorandum of Association (MOA) and Rules &amp; Regulations:<br><\/strong>These should include your NGO\u2019s objectives, structure, and operational guidelines.<\/li>\n\n\n\n<li><strong id=\"\">Register with the Registrar of Societies (State-Level):<br><\/strong>Submit the MOA, rules, identity\/address proof of members, and fee to the <strong id=\"\">Registrar of Societies<\/strong> in your respective state.<\/li>\n\n\n\n<li><strong id=\"\">Apply for PAN:<br><\/strong>After successful registration, apply for PAN for your society.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How NGOs are Funded?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Funding sources for NGOs include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong id=\"\">Government Grants<\/strong> (central and state)<\/li>\n\n\n\n<li><strong id=\"\">Private Donations<\/strong> (individuals, philanthropists)<\/li>\n\n\n\n<li><strong id=\"\">Corporate Sponsorships<\/strong> (CSR funds)<\/li>\n\n\n\n<li><strong id=\"\">Crowdfunding Platforms<\/strong><\/li>\n\n\n\n<li><strong id=\"\">International Aid<\/strong> (foreign funding under FCRA compliance)<\/li>\n\n\n\n<li><strong id=\"\">Membership Fees<\/strong> (in the case of societies)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">NGOs play an important role in solving real-world challenges whether it\u2019s improving education, supporting healthcare, protecting the environment, or empowering communities. They give individuals and groups a platform to drive meaningful change in society.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the different types of NGO structures and knowing how to register them is the first step toward building something impactful. The process may seem complex at first, but with the right guidance and resources, it becomes much more manageable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Learn what an NGO company is, its key functions, and how to register one in India. Explore the complete NGO company registration process, benefits, and compliance requirements.<\/p>\n","protected":false},"author":1,"featured_media":946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=945"}],"version-history":[{"count":2,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/945\/revisions"}],"predecessor-version":[{"id":1550,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/945\/revisions\/1550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/946"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}