NGO Registration in India /HIV & AIDS NGO In Uttarakhand

NGO Registration Procedure in India

A. Types of Organizations:

Trusts

The public charitable trust is a potential form of not-for-profit entity in India. Normally, public charitable trusts can be established for a number of purposes, including the relief of poverty, education, medical relief, provision of facilities for recreation, and any other object of general public utility. Indian public trusts are usually irrevocable. No national law governs public charitable trusts in India, although many states (particularly Maharashtra, Rajasthan, Gujarat and Madhya Pradesh) have Public Trusts Acts.
Societies
Societies are membership organizations, which may be registered for charitable purposes. Societies are generally managed by a governing council or a managing committee. Societies are governed by the Societies Registration Act 1860, which has been adapted by different states.
Sec. 25 Companies
A section 25 company is a company with limited liability that may be formed for "promoting commerce, science, art, religion, charity or any other useful object," provided that no profits, if any, or other income derived through promoting the company's objects may be distributed in any form to its members.

B. Tax Laws
India's tax laws affecting NGOs are similar to the tax laws of other Commonwealth nations. These laws may have some impact on U.S. grantmakers, and thus are summarized here. India provides for exception from corporate income taxes of the income of certain NGOs carrying out specific types of activities, with unrelated business income being subject to tax under certain circumstances. India also subjects certain sales of services and goods to VAT, with a fairly broad range of exempt activities. The rates range from 4 percent to 12 percent, with most goods and services taxed at 8 %.

Applicable Laws:
Constitution of India Articles 19(1)(c) and 30;
Income Tax Act, 1961;
Public Trusts Acts of various states;
Societies Registration Act, 1860;
Indian Companies Act, 1956, section 25;
Foreign Contribution (Regulation) Act, 1976;
Maharashtra Value Added
1) (c). There are three pertinent legal forms of not-for-profit entities under Indian law: trusts, societies, and section 25 companies. Many state and central government agencies have regulatory authority over these not-for-profit entities.
TrustsPublic charitable trusts, as distinguished from private trusts, are designed to benefit members of an uncertain and fluctuating class. In determining whether a trust is private or public, the key question is whether the class to be benefited constitutes a substantial segment of the public. There is no central law governing public charitable trusts, although most states have "Public Trusts Acts.
SocietiesSocieties are governed by the Societies Registration Act 1860, which is an all-India Act. Societies are similar in character to trusts, though there a few essential differences. While only two individuals are needed to form a trust, a minimum of seven individuals are required to form a society. The applicants must register the society with the state Registrar of Societies having jurisdiction in order to apply for tax-exempt status. A registration application includes the society's memorandum of association and regulations and rules. In wide-ranging, Indian citizens serve as members of the managing committee or governing council of societies, although there is no prohibition in the Societies Registration Act against non-natural legal persons or foreigners serving in this capacity.
CompaniesThe Indian Companies Act, 1956, which mainly governs for-profit entities, permits certain companies to obtain not-for-profit status as "section 25 companies." A section 25 company may be formed for "promoting commerce, art, science, religion, charity or any other useful object." A section 25 company must apply its profits, if any, or other income to the promotion of its objects, and may not pay a dividend to its members. At least three individuals are required to form a section 25 company. The promoters or founders of a section 25 company must submit application materials to the Regional Director of the Company Law Board.

D. Economic Activities There are no restrictions on Indian NPOs business/commercial/economic activities. However, the profits must be applied completely towards charitable objects. If this is not done, then the NPO will lose its income tax exemption and its income will be liable to tax at the maximum marginal rate (35.1%). Further the NPO must maintain separate books of account for the commercial/economic/commercial/business activities. Investment Activities - National and State laws limit the types of investments Indian not-for-profit organizations may make. E. Political Activities:Not-for-profit organizations in India may not connect in political campaign activities or legislative activities. Indian not-for-profit entities may lobby for non-political causes. However, such activity promotes the "general public utility" and is incidental to the attainment of the charity's objects. and administer educational institutions of their choice. "Minority" is defined as those groups, which wish to preserve stable ethnic, religious or linguistic traditions or characteristics markedly different from those of the rest of the population. Therefore, special inquiry should be made when donors are considering providing grants to educational institutions.G. Control of Organization:With regard to charities in general, trustees are expected to be independent. It is, however, ordinarily possible for another legal person to influence the selection of directors, officers, or trustees. A for-profit company, which creates a public charitable trust, more direct control. The for-profit company could, in the process of founding the public charitable trust, reserve the authority to appoint and remove trustees and to influence major policy decisions. This is usual form of public charitable trust known as a "corporate foundation," which is essentially controlled by its for-profit founder, or "settlor."

NGO Registration in India
In India non profit / public charitable organizations can be registered as trusts, societies, or a private limited non profit company, under section-25 companies. Non-profit organizations in India (a) exist separately of the state; (b) are self-governed by a board of trustees or 'managing committee'/ governing council, comprising individuals who generally serve in a fiduciary capacity; (c) produce benefits for others, usually outside the membership of the organization; and (d), are 'non-profit-making', in as much as they are prohibited from distributing a monetary residual to their own members.Section 2(15) of the Income Tax Act which is applicable uniformly throughout the Republic of India defines 'charitable purpose' to include 'relief of the poor, education, medical relief and the advancement of any other object of general public utility'. A purpose that relates completely to worship is not considered as charitable. Therefore, in ascertaining whether a purpose is private or public, one has to see if the class to be benefited, or from which the beneficiaries are to be selected, constitute a substantial body of the public.Whether a trust, section-25 company or society, 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 repayment against donations made.

Registration of a Non -Profit organizations in India :
Trust
Society
Section-25 Company Additional Licensing/ Registration1. TrustsA public charitable trust is habitually floated when there is property involved, especially in terms of land and building. Legislation: Different states in India have different Trusts Acts in force, that govern the trusts in the state, in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.Main Instrument: The main instrument of any public charitable trust is the trust deed, wherein the aims, objects and mode of management should be enshrined. In every trust deed, the maximum and minimum number of trustees has to be specified. The trust deed should clearly spell out the objects and aims of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the trustees and settlers in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper and the value of which would depend on the valuation of the trust property.A. Trustees: A trust requires a minimum of two trustees; there is no upper limit to the number of trustees. The trustees are comprised by the board of the management.Application for Registration:The application for registration should be made to the official having jurisdiction over the region in which the trust is to be registered. After providing details regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of Rs.2/- to the form and pay a nominal registration fee that may range from Rs.3/- to Rs.25/-, depending on the value of the trust property. The application form should be signed by the applicant before the superintendent or regional officer of the regional office of the charity commissioner or a notary. The application form should be submitted, with a copy of the trust deed. The affidavit and consent letter are two other documents which should be submitted at the time of making an application for registration.

2. SocietyAccording to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: 'charitable societies, military orphan funds or societies established at the many presidencies of India, the diffusion of political education societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, designs or instruments.Legislation: Societies are registered under the Societies Registration Act, 1860, that is a federal act. The society must not only be registered under the Societies Registration Act, but also, as well, under the Bombay Public Trusts Act. Main Instrument: The main instrument of any society is the memorandum of association and regulations and rules wherein the aims and objects and mode of management should be enshrined.Trustees: A Society requires a minimum of seven managing committee members. There is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or a managing or executive committee. Application for Registration: Registration can be done either at the state level or at the district level. The procedure varies from state to state. However usually the application should be submitted together with: (a) memorandum of association and rules and regulations; (b) consent letters of all the members of the managing committee; (c) authority letter duly signed by all the members of the managing committee; (d) an affidavit sworn by secretary or the president of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp; and (e) a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society. All the aforementioned documents that are necessary for the application for registration should be submitted in duplicate, together with the required registration fee. The memorandum of association and rules and regulations need not be executed on stamp paper unlike the trust deed.

3. Section-25 CompanyAccording to section 25(1) (a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established 'for promoting commerce, art, religion, science, charity or any other useful object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Legislation: Under section-25 of the Indian Companies Act. 1956, section -25 companies are registered.Main Instrument: - The main instrument is a Memorandum and articles of association for a section -25 company.Trustees: - A section-25 Company requires a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of managing committee or a board of directors. Application for Registration:
An application is to be made for availability of name to the registrar of companies, which must be made in the prescribed form no. 1A, together with a fee of Rs.500/-. It is desirable to suggest a choice of three other names by which the company will be called, in case the first name which is acceptable by the registrar.
An application should be made in writing to the regional director of the company law board, when the availability of name is confirmed. The application should be accompanied by the following documents: Three printed or typewritten copies of the memorandum and articles of association of the proposed company, duly signed by all the promoters with full name, occupation and address.
The applicants must also furnish to the registrar of companies a copy of the application and each of the other documents that had been filed before the regional director of the company law board.
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 at least once in a newspaper in a principal language of the district in which the registered office of the proposed company is situated and circulating in that district, and at least once in an English newspaper circulating in that district.
The regional director may, after considering the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, as he may, in his discretion, decide, determine whether the license should or should not be granted.
The regional director may also direct the company to insert in its memorandum, or in its articles, or in both, such conditions of the license as may be specified by him in this behalf.

4. Special LicensingIn addition to registration, a non-profit engaged in certain activities might also require special license/permission. Some of these include:A place of work in a restricted area (like a tribal area or a border area requires a special permit - the Inner Line Permit - usually issues either by the Ministry of Home Affairs or by the relevant local authority (i.e., district magistrate). To employ people and open an office, the NGO should be registered under the Shop and Establishment Act. To employ foreign staff, an Indian non-profit needs to be registered as a trust/ company/society, have FCRA registration and also obtain a No Objection Certificate.
Comparision among Trust, Society and Non Profit Company

Trust
Society
Section- 25 Comapny
Statute/Legislation
Relevant State Trust Act or Bombay Public Trusts Act, 1950
Societies Registration Act, 1860
Indian Companies Act, 1956
Jurisdiction
Deputy Registrar/Charity commissioner
Registrar of societies (charity commissioner in Maharashtra).
Registrar of companies
Registration
As trust
As SocietyIn Maharashtra, both as a society and as a trust
As a company u/s 25 of the Indian Companies Act.
Registration Document
Trust deed
Memorandum of association and rules and regulations
Memorandum and articles of association. and regulations
Stamp Duty
Trust deed to be executed on non-judicial stamp paper, vary from state to state
No stamp paper required for memorandum of association and rules and regulations.
No stamp paper required for memorandum and articles of association.
Members Required
Minimum – two trustees. No upper limit.
Minimum – seven managing committee members. No upper limit.
Minimum three trustees. No upper limit.
Board of Management
Trustees / Board of Trustees
Governing body or council/managing or executive committee
Board of directors/ Managing committee
Mode of Succession on Board of Management
Appointment or Election
Appointment or Election by members of the general body
Election by members of the general body

HIV & AIDS NGO
India is one of the most populated countries in the world, with over one billion inhabitants. It is estimated that around 2.3 million people are currently living with HIV. HIV emerged later in India than it did in several other countries. Infection rates soared throughout the 1990s, and today the endemic affects all sectors of Indian society, not just the groups - such as sex workers and truck drivers - with which it was initially associated. In a country where illiteracy, poverty and poor health are rife, the spread of HIV presents a daunting challenge. HIV/AIDS is a major concern for developing countries global. Lack of education, poor nutrition and inadequate health care, linked with great poverty, make people in the poorest countries most vulnerable to HIV/AIDS. The HIV/AIDS pandemic is growing quickly every year, resulting in NGOs working across a wide range of issues continuously having to contend with an ever-increasing number of people in need of their assistance. The HIV/AIDS pandemic is growing fast every year, resulting in NGOs working across a wide range of issues constantly having to contend with an ever-increasing number of people in the need of their assistance.

HIV/AIDS development NGOs have been very significant in developing strategies to curtail the spread of HIV/AIDS and help people affected by the virus. These NGOs have had a tremendous impact on the lives of many South Africans. Development NGOs, in exacting, have ensured that HIV/AIDS is an integral part of their programmatic focus, with the view that knowledge of HIV/AIDS is the first step towards prevention. Stopping the spread of HIV/AIDS is necessary for sustainable development. The huge size of India makes it difficult to examine the effects of HIV on the country as a whole. The majority of states within India have a higher population than most African countries, so a more detailed picture of the emergency can be gained by looking at each state individually.