How To Start An NGO: 7 Steps, Types Of NGO And Its Benefits

A term for a Non-Governmental Organization, “NGO,” was first coined by the United Nations in 1945.) An independent organization, defined as an NGO, works mostly towards the welfare of local communities and civil society. If you seriously want to know how to start an NGO, understanding its role in community betterment is essential. They play an important role in societal development, community welfare, and increasing citizen participation.

If you’re interested in working towards these goals, you may ask: How can I start an NGO in India?

According to NITI Aayog, India currently boasts about 1,63,235 registered NGOs. These NGOs are actively working to spread the importance of education and health across the country. NGOs in India champion causes such as gender equality and environmental protection continuously.

If you are looking to start an NGO, you have probably spent ages wading through search engine results. Browsing through some popular searches like ‘Can I start an NGO alone’ or ‘How to start an NGO and get funding’.

You need not look further. In this blog, we will help you learn all about NGOs in India and the benefits of starting an NGO. We have also provided a detailed, step-by-step guide on how to start an NGO in India

The Types Of NGO Registration And Its Benefits

Here is a list of different types of NGOs in India along with NGO examples:

1. Public Trust Registration

The Public Charitable Trust registration falls under the Indian Trust Act of 1882. You can set up this trust with a self-governing board of directors.

They provide aid and funding for the basic needs of society’s neediest. Regardless of the caste, gender, or religion of the beneficiary, these benefits are distributed equally.

Public trusts are charitable institutions that benefit the public at large. Some examples of public trusts are orphanages and nursing homes.

Advantages of Trust Registration

2. Society Registration

According to the Society Registration Act of 1860, a society is a multi-member organization. It is set up with the primary goal of supporting arts and educational institutions. They establish funds for orphans and build museums. They also educate the general public about several societal and political issues.

Most society NGOs are focused on the advancement of humanities, science, and arts and literature. A good example of this is The Crafts Council of India established by Kamaladevi Chattopadhyay in 1964.

Benefits under Society Registration:

There are many benefits of NGOs to the community. Some of the advantages of Society Registration include:

• A registered society is democratic. Committee representatives are chosen democratically by members of the society.
• Upon receiving a certificate of completion from income tax officials, the society may be exempt from paying taxes.
• A society can own, buy and sell its property.

3. Section 8 Company Registration

Companies registered under Section 8 of the Companies Act of 2013 work towards societal welfare. As a company, you may choose to promote commerce, art or science. Or you could work towards making sports and education accessible to all. As a Section 8 company, you must apply your earned profits to the welfare of these objectives.

Benefits of Section 8 Company Registration:

There are quite a few advantages applied to a Section 8 Company which are:

• A Section 8 company enjoys all the privileges of a limited company. This means that the shareholders are not personally responsible for the company’s debts.
• You do not require a minimum share capital for its establishment.
• Donors can claim tax benefits upon donating to these companies.
• If the company acquires an FCRA license it can receive donations and grants from abroad as well.

7 Easy Steps on How to Start an NGO in India

One of the questions probably troubling you right now is how to start an NGO in India. You have understood the different types of NGOs but establishing one can be a challenge. Here is a 7-step guide on how to start an NGO in India:

Step 1: Decide the cause and mission of your NGO

If you are wondering how to start an NGO, the first step is to determine your organization’s objectives. You need to list the causes you strongly believe in and identify with. Then, elaborate on your NGO’s values and mission statement. This will allow you to select the ideal board members and identify your target market.

For instance, you might support issues like environmental preservation, animal welfare, and women’s empowerment. But if you care deeply about women’s issues, make this subject the focal point of your organization’s cause.

Identify the causes you strongly believe in and can passionately advocate for. Understanding where your passions lie is crucial in how to start an NGO that will have a meaningful impact. Experience at other organizations will aid you in setting up your own NGO.

Step 2: Set up the board of directors/members

The next step in how to start an NGO involves assembling a board of directors. To ensure the smooth running of the non-profit, you’ll need skilled administrators, managers and legal representatives.

There are various accounts involved when managing an NGO. The management of donations and these accounts need to be handled with utmost care. Ensure that you onboard only those that you can trust implicitly. Hire people who are as passionate about working towards your cause as you are.

Step 3: Decide the name of your NGO

Choosing a name is a critical step in how to start an NGO. Research the market to understand how other organizations in your niche named themselves. If your chosen name is taken, you could look into synonyms for the same.

When choosing a name for your organization, take into account its cultural and historical significance. Your NGOs name will be its identity going forward. So choose carefully.

Step 4: Memorandum Articles of Incorporation/Articles of Association

Have your legal representative draft the articles of association at this point. Your board of directors is in place. Your NGO name, address, and goals have also been defined. These documents are essential in how to start an NGO as they outline the purpose, structure, and regulations of your organization. Other information listed under this document includes –

• Company name and purpose.
• The share capital.
• Organizational structure.

Step 5: Get your NGO registered

Registering your NGO is a crucial step in how to start an NGO. Start the procedure for NGO registration on NGO Darpan, a government website maintained by NITI Aayog. Keep the required documents ready with you for registration purposes. When registering you will need to provide your name, address, and contact details.

Once an administrator reviews and verifies your provided documents, you will receive an email. It usually takes up to 48 hours for the confirmation of registration.

Step 6: Start collecting funds

Fundraising is a significant aspect of how to start an NGO. Set your funding goals and engage your team to start collecting them. Start small and set achievable goals. Money can come in through various windows in NGOs. Either through private donations, public funding, membership fees, or more.

A lot of NGOs are also crowd funded regularly. You can use your network of fellow social workers to start a fund. Or you could approach private companies related to your cause to help fund the NGO. Make sure to keep your accounts clean and organized.

Step 7: Build a wide network

Networking is essential in how to start an NGO. Don’t stop networking. Networking is the single greatest tool to spread the word and earn millions and more. Connections with other NGOs in the field are very necessary. At this stage, you are trying to build your credibility. With the help of established NGOs, you’ll be able to build trust with the audience and other organizations.

Keep this in mind, your network can lead you to better funding and campaigning opportunities.

Also Read: How to Register a Startup in India? Here’s Your Step-by-Step Guide!

How to get Certified as an NGO?

Is your goal to start an NGO in India? Founding an NGO to help develop communities requires certain key registrations with the Indian Government. These include the following:

1. Getting a DSC and DIN

DSC stands for Digital Signature Certificate, which is essential for verifying the authenticity of online documents. With most work having shifted online, DSC is an important certificate to obtain. There are three classes of DSC: classes 1, 2, and 3. A director of an organization must receive a Class 2 or higher certificate.

These signatures are renewable and usually valid for one to two years. To obtain certain classes of DSC, you must first generate a DIN or Director Identification Number. When applying for a DIN, you need to submit the SPICe Form, a DIR-3 Form, and the DIR-6 Form.

2. Legal Name

Once you have registered for DSC and DIN, it is essential to register the organization’s name. You will be required to fill out and submit the eForm INC-1 yourself. Key points to keep in mind when filling out the form are:

• The name cannot match the name of another existing company registered under the 2013 Companies Act.
• The name you plan to register should not indicate any sponsorship from the central government.

When filing the form, you must enter your DIN number. If you don’t have a DIN yet, you can use your PAN or passport number instead.

3. Approval form INC 12

Once the name of your organization has been approved, you have to submit Form INC 12. This form is an application for a license under section 8 of the 2013 Companies Act.

4. Issuing the License

Upon filing, the form undergoes verification by the Registrars of Companies. To ensure a smooth registration procedure, you need to file the INC-12 form with the following documents.

• Memorandum of Association (MoA) / Articles of Association (AOA) Form INC 13 with photographs
• A notarized declaration form INC-14 and INC-15 have to be submitted by the applicants.
• A three-year account statement with projected income and expenses.
• A list of directors and other top management officials.

Once all of the above documents are verified, the RoC will issue your license.

5. Incorporation of the company with SPICe form INC-3

The Simplified Proforma for Incorporation Company Electronically, an e-form required for a company’s incorporation. SPICe, as it’s more commonly known, requires the following details upon application –

• Information about the company, such as the capital structure or address.
• Directors are required to submit details including their name, PAN, address, and other proofs.
• Mention the date, place, and mode of your stamp duty payment.
• Your company needs PAN and TAN numbers as well. Upon filing for incorporation, include your brand’s Area and Range Code, and AO No details.
• Optional attachments include your company’s investment details and EPF / IEC registration details.

Why Should You Register As An NGO In India?

An individual or a group can set up an NGO as a trust, society, or Section 8 company under Indian law. After reading the overview above, you might already be set on starting an NGO. But you may still be pondering the benefits of starting an NGO. Don’t worry.

We have listed out a few Advantages of establishing an NGO in India:

1. Tax Exemption

Under the Companies Act of 2013, NGOs are exempt from paying taxes. Your NGO can redirect the gathered funds toward its cause instead.

2. Perpetual Succession

The Court of India is the only authority that can order the dismantling of the organization, which is a registered NGO. This means that even after the exit of the founders the NGO can continue doing its noble work.

3. Preservation of Name

At the time of incorporation, you registered the name of your NGO under the Companies Act. You will be the only individual or entity allowed to use the name throughout India.

4. Help you with Finance

A planned financial strategy can assist you in operating a tax-free business with the assistance of your NGO. An NGO can also buy and register land and properties under its name. Personal liabilities will not affect the protection of these properties.

5. No limit on share capital requirement

You can start an NGO without money in India. The organization’s growth is not dependent on the sale of high-capital shares. Instead, it can survive on the charities it receives as part of its cause.

How to Start an NGO as a Student in India

Starting an NGO as a student in India can be a rewarding endeavor. If you’re passionate about making a difference and wondering how to start an NGO, follow these steps to get your organization off the ground:

1. Identify Your Cause: Determine the specific cause you want to address. Whether it’s improving education, tackling environmental issues, or supporting underprivileged communities, knowing how to start an NGO with a clear cause will guide your mission and attract support.
2. Research and Plan: Thorough research on the legal aspects of how to start an NGO in India is crucial. Understand the different types of NGO registrations, such as Trust, Society, or Section 8 Company, and draft a detailed plan outlining your objectives, target audience, and strategies.
3. Form a Team: Assemble a dedicated team of individuals who share your vision. When learning how to start an NGO, having a committed team is essential for managing operations, fundraising, and implementing projects effectively.
4. Register Your NGO: To formally establish your NGO, follow the legal procedures for registration. This involves choosing the type of registration that suits your needs and obtaining necessary certifications and licenses. Knowing how to start an NGO involves understanding these registration requirements thoroughly.
5. Create Awareness: Promote your NGO through social media, campus events, and community outreach. Effective strategies for how to start an NGO include building a strong presence and engaging with potential supporters and volunteers.
6. Fundraising: Develop a strategy for fundraising to support your NGO’s activities. Explore options such as individual donations, corporate sponsorships, and grants. Knowing how to start an NGO also means understanding various funding avenues and planning campaigns to attract financial support.
7. Implement Projects: Begin with small-scale projects aligned with your NGO’s mission. Monitor and evaluate these projects to ensure they are impactful. Learning how to start an NGO includes practical experience in running initiatives and assessing their effectiveness.
8. Network and Collaborate: Build relationships with other NGOs, government bodies, and community leaders. Networking is a key aspect of how to start an NGO successfully, providing valuable resources and opportunities for growth.

Starting an NGO as a student requires commitment and a well-thought-out approach. By following these steps on how to start an NGO, you can make a significant impact and contribute positively to your community.

It’s possible to start your own NGO

NGOs are non-governmental organizations that work toward the development and welfare of society. In India, there are three types of NGOs: trust, society, and Section 8 companies. Once you have gathered the expertise, you can go ahead and register to start your organization.

To set up an NGO, you need to first decide on your passion. Defining your goal and mission will help you further your cause and hire the right people. With 2 or more directors, you can set up a public trust or a Section 8 company. But if you wish to promote the arts and literature, you should consider registering with a social NGO.

Innovative, low-investment ideas for the hidden entrepreneur in you! Explore our guide on Business Ideas.

Frequently Asked Questions (FAQ’s)

Other Related Reads

• How to Register A Company In India: A Step-by-Step Comprehensive Guide