How to Start an NGO in India: A Complete Step-by-Step Guide

23 April 2025

Are you planning to start an NGO but don’t know how to? 

Well, this will no longer be a puzzle for you after reading this comprehensive guide.

The concept of a non-government organization has evolved to make a big impact on society, especially underprivileged people. Not only this, it also supports education, healthcare, women's empowerment, and environmental sustainability. Moreover, this structure can give you the legal, financial, and operational security of a business. 

So, let’s start with the step-by-step guide on how to register for it. 

Comprehensive Guide on NGO Registration in India

Here are some crucial steps that you must remember while registering for an NGO. 

Step 1: Identify Your Purpose and Vision

Before moving ahead, you need to understand why only NGOs register. Likewise, discover: 

• What is the cause?
• Who do you want to serve as beneficiaries? 
• What are the activities you will undertake? 
• How would you arrange funds for them?

Overall, the vision, mission, and objectives of the non-government organization must be crystal clear. These points will guide you on all activities, communication, and outreach. 

Step 2: Choose the Right Legal Structure

Once you have decided, register an NGO under one of the given legal frameworks: 

1. Trust—The Indian Trusts Act, 1882 governs the function and formation of this entity
   • This is majorly selected for conducting charitable activities with family or friends as trustees.
   • To operate, you need a board of trustees.
2. Society—This is typically set up under the Societies Registration Act, 1860.
   • This is mostly selected to form cultural, scientific, or charitable associations.
   • For its foundation, you need at least 7 founding members.
3. Section 8 Company—This company is legally formed under the Companies Act, 2013.
   • This is no less than a company, but you cannot set it up for profit.
   • Mostly, it is the choice of those who seek more formal compliance and fundraising options. 

These are some alternatives that you can have for registering an NGO. You can select any of these setups according to your plan of scalability, fundraising, and team.

Step 3: Select a Unique Name & Verify

This step is dedicated to selecting a unique name. It must be meaningful and original, meaning not matching any existing or registered entity. Once you have decided, go ahead and outline some key legal documents. Here are the names of those documents that you should prepare with the help of a consultant. 

• Trust Deed (for Trusts)
• Memorandum of Association (MOA) and Rules & Regulations (for Societies) must be outlined for it.
• MOA & Articles of Association (AOA) for a Section 8 company are necessary to draft.

Your consultant will help you to outline them, drafting your objectives, rules, operations, powers of the board, and memberships. 

Step 4: Register Your NGO

Now comes the step to formally register it. Each entity has unique requirements. 

1. For a Trust

• To start it, you need a minimum of 2 trustees
• Draft a trust deed on a stamp paper.
• Take help from your consultant to register it with the local Registrar of Trusts.
   

2. For a Society

• This type of NGO can be started with a minimum of 7 members from different states (for national-level societies).
• Collect the outlined MOA, rules & regulations, ID proofs, and address proof to submit.
• Finally, submit it to the Registrar of Societies for further verification.
   

3. For a Section 8 Company

• For this company, you need at least 2 directors.
• Like any other company registration process, the directors should apply for a Digital Signature Certificate (DSC) & Director Identification Number (DIN) to obtain the next steps.
• Hire a consultant to help you in filing it with the Registrar of Companies (ROC) through the SPICe+ form on the MCA portal.
• The application requires approval from the Regional Director of ROC, which is required for a license under Section 8. 

Following these steps will help you to get it verified by the registrar. This is how your NGO is legally set up. 

Step 5: Necessary: PAN, TAN & Open a Bank Account

Now, you need to complete further formalities to formally transact after registration:

• Apply for a PAN card, ensuring that it is in the registered name of your NGO.
• You may apply for TAN if you think TDS will be deducted.
• Also, you need a current bank account in the name of the NGO. It will require your registration certificate, PAN, and resolution to open the account.

Step 6: Get 12A and 80G Certification

These certificates are must-haves for enjoying exemptions from tax. 

• 12A Registration—This is particularly to make your NGO income tax-exempt.
• 80G Certification—This certificate enables you to claim tax deduction on the donations your company receives.

Instead of one, you can apply for both certificates. The Income Tax Department issues it online, provided you have applied through Form 10A. But you will be eligible for it if you have accounts, activities, and documents in the name of your NGO beforehand. 

Step 7: Register on NGO DARPAN Portal

NGO DARPAN is a governing body under the NITI Aayog, which establishes transparency between NGOs and government bodies. This registration is also vital because you cannot do the following without it: 

• Obtaining government grants.
• Participating in schemes or CSR projects.

This registration will be complete by providing your NGO’s registration details, PAN, and office address.

Step 8: Set Up Operations and Team

After completing all legal formalities, focus on building your team to run it efficiently. 

• Hire or recruit volunteers or staff.
• Set up various departments for fundraising, outreach, project execution, administration, etc.
• Now, blueprint a plan of action to operate it with timelines and budgets.

You may start with small and measurable projects. Prepare documents of every activity with their photos, reports, and feedback. These details and facts will help in seeking funds without hassles.

Step 9: Raise Funds and Create Awareness

Raising funds is the main source of its operations. So, you can create awareness about your non-government organization to raise funds through 

• Individual donations
• Corporate CSR partnerships
• Government or international grants
• Fundraising events and campaigns

You may use social media, websites, community events, and newsletters to make people aware of it and the associated causes. This practice will help in building credibility. 

Step 10: Maintain Compliance

In the end, it is necessary to understand that a registered NGO must follow these:

• File annual returns (ITR).
• Share income & expenditure statements.
• Create and maintain books of accounts.
• Follow FCRA rules if you have some funding sources from foreign countries.
• Be regular with conducting board meetings and also, keep minutes. 

Follow these compliance practices religiously to get rid of penalties and cancellation of your NGO’s registration. 

Conclusion

Starting the process of registering an NGO in India can be challenging. But with the support of a consultant, you can attain clarity, plan, and follow the right legal steps to formally register it. This setup will help you to change the lives of underprivileged people and also inspire others.