How to Start an NGO / Trust in Madhya Pradesh

Types of NGOs in India

You can form an NGO in three ways:

• Trust: Governed by Indian Trusts Act / state trust acts. Simplest and most common for small NGOs.
• Society: Governed by Societies Registration Act, 1860. Requires minimum 7 members. Popular for educational and cultural bodies.
• Section 8 Company: Incorporated under Companies Act 2013. Most structured form. Valid pan India. Required for large NGOs.

Documents Required (Trust / Society)

• Trust Deed / MOA & Bye-Laws (drafted by advocate)
• Address proof of registered office
• Identity & address proof of all trustees/members
• Passport-size photographs
• Stamp paper (as per state rules)
• Two witnesses with ID proof

Benefits of 80G and 12A Registration

• 12A Registration: Exempts NGO income from income tax. Without 12A, the NGO pays 30% tax on all income.
• 80G Registration: Donors can claim 50% or 100% deduction on their donation amount — this significantly increases donor motivation.
• FCRA Registration: Enables the NGO to receive foreign grants and contributions.
• Both 12A and 80G must be applied for separately after NGO registration.

Annual Compliance Requirements

Post-registration, every NGO must:

• File ITR-7 annually (mandatory even with no income)
• Get accounts audited if gross receipts exceed ₹1 lakh / as required by registrar
• Submit annual report to Registrar (for societies)
• File Form FC-4 annually if FCRA registered
• Maintain donation receipts and issue 80G certificates to donors