In this article, Pratiksha Gupta pursuing Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata, discusses how to start a religious ashram in India.
ORIGIN OF ASHRAM
The word ashram is derived from a Sanskrit word, “srama” which means “religious exertion”. Later in the twentieth century, English speakers expanded the expression “ashram” to include any kind of religious withdraw, paying little mind to category.
MEANING
According to Encyclopedia, Ashram is a place where a man or a gathering of individuals go to live independently from whatever remains of society and practice the Hindu religion.
In layman language, an ashram is a place where you get a shelter for yourself when you are not able to take care of yourself in the outside world. There are many types of ashrams overall and they serve different purposes, but their base remains the same, to provide inner peace.
Some of the already existing ashrams in India are Osho Ashram, The Art Of Living Ashram, Satya Sai Ashram, etc.
For starting an ashram in India, one needs to categorize under which Structure the ashram would fall. For eg- Trust, Association, Society, NPO etc.
In my article, I’ll categorize the ashram as an NPO i.e. Non Profit Organization or also Non Governmental Organization and the procedure and steps required for starting and setting up the same in India.
WHAT IS AN NGO?
Non-Government Organizations also called as Non Profit Organizations are the associations not for profit. NGOs are the associations that work towards the promotion of certain causes or for the welfare of the society at large. These organizations have no interest in the profits they earn and focus only on the objectives which benefit the society and public at large.
Here is a brief step-by-step guide for starting your own NGO in India.
- The initial step is to take in the way of life of the general population you need to serve. The biggest explanation behind disappointment of any association is inability to impart adequately. This can be observed to be the wellspring of monetary issues, social issues, lawful issues and pretty much every other issue.
- Set out the issues that your NGO needs to address and recognize the mission, vision and point.
- Before enlisting the association, you need an administering body set up, that will be in charge of all activities and choices of the associations.
- Every NGO in India is required to document a trust deed/ Memorandum of Understanding/ ByLaws containing the information about the NGO, i.e. the name, registered address, goals and objectives, details of the members, procedures, rules and regulations governing the NGO.
NGO REGISTRATION PROCEDURE IN INDIA
In India, an NGO may be registered under the following Acts:
- Indian Trusts Act
- Societies Registration Act
- Section 25 of the Companies Act
Non-profit organizations in India
- Exist independently of the state;
- Are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity;
- Produce benefits for others, generally outside the membership of the organization; and
- Are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members.[1]
‘Charitable Purpose’ includes ‘relief of the poor, education, medical relief and the advancement of any other object of general public utility’.[2]
Thus, while doing any public charity, keep public welfare as the first priority and not the interests of an individual. Associations which do not have general society component –, for example, trusts for the advantage of labourers or workers of an organization – have not been held to be charitable.
TRUSTS REGISTRATION
Public Charitable trusts, as recognized from private trusts, are intended to profit individuals from an unverifiable and fluctuating class. In figuring out if a trust is public or private, the key question is whether the class to be profited constitutes a significant portion of people in general. There is no central law governing public charitable trusts, although most states have “Public Trusts Acts.”
A public charitable trust must register with the office of the Charity Commissioner having jurisdiction over the trust (generally the Charity Commissioner of the state in which the trustees register the trust) in order to be eligible to apply for tax-exemption).
In general, trusts may register for one or more of the following purposes:
- Relief of Poverty or Distress;
- Education Medical Relief;
- Provision for facilities for recreation or other leisure -time occupation (including assistance for such provision), if the facilities are provided in the interest of social welfare and public benefit; and
- The advancement of any other object of general public utility, excluding purposes which relate exclusively to religious teaching or worship.
At least two trustees are required to register a public charitable trust. In general, Indian citizens serve as trustees, although there is no prohibition against non-natural legal persons or foreigners serving in this capacity.[3]
MAIN TOOL
The main tool of any public charitable trust is the trust deed, where the aims and objects of the trust deed with the minimum and maximum number of trustees, and their appointment and removal procedures are to be mentioned. The trust deed should be signed by both the and trustees in the presence of two witnesses.
APPLICATION FOR REGISTRATION
The application for enrollment ought to be made to the authority having control over the locality in which the trust is tried to be enlisted.
After the details are being provided in the form about the trust which is being formed, the candidate needs to fasten a court charge to the shape and pay an enlistment expense which may run in an unexpected way, contingent upon the area and estimation of the trust office and trust property.
SOCIETIES REGISTRATION
The following societies can be registered under the Societies Registration Act:
‘charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, 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, instruments or designs.’[4]
MAIN TOOL
The main tool of societies working as a Non Profit Association is the Memorandum Of Association which should contain the aims, objectives, rules and regulations, procedures in which the society is to be governed.
A society should have a minimum of seven managing committee members.
APPLICATION FOR REGISTRATION
The application for the registration of a society can be done either at the state level or at the district level.
The procedure for the registration of a society of a state is different with that of another state. But, generally, the registration application is submitted with the following –
- Memorandum of Association
- Rules and regulations
- Managing committee members consent letters
- Duly signed authority letter by the managing committee members.
- An affidavit by the president of the society on non-judicial stamp paper, together with a court fee stamp.
- A declaration by the members of the managing committee about the usage of the funds only for the purpose of the aims and objects of the society.
All the previously mentioned documents which are required for the application for enrollment ought to be submitted in copy, together with the required registration fee.
SECTION 8 COMPANY – (OLD SECTION 25)
A section 8 company can be established ‘for promoting commerce, art, science, religion, 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.[5]
MAIN TOOL
The main tool for Section 8 Company is the Memorandum of Association and the Article of Association.
APPLICATION FOR REGISTRATION
- An application must be made for accessibility of name to the recorder of organizations, which must be made in the form no. 1A, together with a mentioned fee.
- Once the accessibility of name is affirmed, an application ought to be made in keeping in touch with the regional director of the organization law board. The application ought to be joined by the accompanying reports:
Three printed or typewritten duplicates of the update and articles of relationship of the proposed organization, properly marked by every one of the promoters with full name, address and occupation.
- An advocate or a charted accountant’s declaration that the memorandum of association and the articles of associations have been drawn up according to the provisions of the Act and no rules and regulations contravene any of the provisions of the Act.
- A statement showing the detailed information about the assets and liabilities of the company as on the date of application, or within seven days of said application.
- A declaration of the person who is making the aforesaid application that he is of sound mind, not an undischarged insolvent and not convicted in any of the court for any kind of offence under section 203 of the Companies Act, 1956 for appointment as a director.
- The candidates must also submit a copy of the application and all the other relevant document required for the registration of the company which was filed before the regional director of the company law board to the Registrar of Companies.
- The candidates must publish the notice atleast once in the newspaper which is in the language of the district where the registered office of the company is situated and atleast once in the English newspaper formulating in that district where the registered office is located.
- The regional director may, after considering the objections which is received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, in his discretion, decide, determine whether the licence should or should not be granted.
- The regional director may also instruct and direct the company to insert conditions in the memorandum and articles of the associations as he may deem think fit.
REFERENCES
- http://www.ngosindia.com/resources/ngo_registration.php
- http://kindheartz.com/articles/ngo-legal-registration-services/68-ngo-registration-procedure-in-india
[1] http://kindheartz.com/articles/ngo-legal-registration-services/68-ngo-registration-procedure-in-india
[2] Section 2(15) Income Tax Act
[3] http://kindheartz.com/articles/ngo-legal-registration-services/68-ngo-registration-procedure-in-india.
[4] Section 20, Societies Registration Act, 1860
[5] Section-8 of Indian Companies Act, 1956 (Old section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25)
Thank you