How Much Money is Required to Start an NGO in India?

Starting a Non-Governmental Organization (NGO) in India requires careful planning, including understanding the financial aspects involved. The cost to start an NGO varies depending on factors such as the type of registration, location, legal fees, operational expenses, and initial activities. Below, we discuss the detailed financial requirements for starting an NGO in India and the ngo procedure for registration.

Types of NGO Registration in India

Before estimating the costs, it is essential to understand the different types of NGO registration. In India, NGOs can be registered under three main categories:

1. Trust - Governed by the Indian Trusts Act, 1882.

2. Society - Governed by the Societies Registration Act, 1860.

3. Section 8 Company - Governed by the Companies Act, 2013.

The cost of registration depends on the chosen structure. Let’s break down the financial requirements based on each type.

1. Trust Registration Costs

• Registration Fee: ₹1,000 - ₹5,000 (varies by state)

• Stamp Duty & Documentation Costs: ₹1,000 - ₹3,000

• Lawyer Fees (if applicable): ₹5,000 - ₹20,000

• Other Miscellaneous Costs: ₹2,000 - ₹5,000

Total Estimated Cost: ₹10,000 - ₹30,000

2. Society Registration Costs

• Registration Fee: ₹500 - ₹5,000

• Legal Drafting & Documentation: ₹5,000 - ₹15,000

• Notary and Stamp Duty Costs: ₹2,000 - ₹5,000

• Professional Fees (if hiring a consultant): ₹10,000 - ₹25,000

Total Estimated Cost: ₹15,000 - ₹50,000

3. Section 8 Company Registration Costs

• Government Registration Fee: ₹2,000 - ₹7,000

• Digital Signature Certificate (DSC): ₹1,500 - ₹2,500 per director

• Director Identification Number (DIN): ₹500 - ₹1,000 per director

• Memorandum & Articles of Association (MOA & AOA) Drafting: ₹5,000 - ₹10,000

• Stamp Duty & Notary Fees: ₹3,000 - ₹8,000

• Professional Fees (CA/CS/Lawyer): ₹10,000 - ₹30,000

Total Estimated Cost: ₹25,000 - ₹75,000

Additional Costs to Start an NGO

Apart from registration expenses, there are other costs involved in running an NGO. These include:

1. Office Space & Infrastructure:

   • Renting an office: ₹5,000 - ₹50,000 per month (depending on the city)

   • Office furniture & equipment: ₹20,000 - ₹1,00,000

   • Website development & maintenance: ₹10,000 - ₹50,000

2. Operational & Administrative Costs:

   • Staff salaries: ₹10,000 - ₹50,000 per employee per month

   • Utility bills (electricity, internet, phone): ₹3,000 - ₹10,000 per month

   • Stationery & printing costs: ₹2,000 - ₹10,000 per month

3. Marketing & Fundraising Costs:

   • Advertising & promotions: ₹5,000 - ₹50,000

   • Fundraising events: ₹10,000 - ₹1,00,000

Total Estimated Budget for an NGO in India

ngo procedure for registration

To register an NGO in India, follow these steps:

1. Choose the NGO Type: Decide whether to register as a Trust, Society, or Section 8 Company.

2. Name Selection: Pick a unique name and check availability with the Registrar.

3. Draft the Memorandum of Association (MOA) & Rules: Prepare legal documents defining the NGO’s objectives.

4. Gather Required Documents: These include:

   • Identity proof of founders (Aadhar, PAN, Passport, etc.)

   • Address proof of the office (Rental agreement, electricity bill, etc.)

   • Memorandum of Association (MOA)

   • Articles of Association (AOA) (for Section 8 Company)

5. Submit Application: Apply at the respective registration office with the required fees.

6. Obtain Certification: After verification, the NGO will receive a registration certificate.

Ongoing Costs and Fundraising

Starting an NGO is just the beginning; running it successfully requires sustainable funding. Here are some ways to secure funds:

• Government grants & CSR funding

• Crowdfunding campaigns

• Membership fees & donations

• Events & charity drives

Conclusion

The cost of starting an NGO in India depends on the type of registration and operational requirements. On average, the budget can range between ₹2,00,000 and ₹10,00,000. Understanding the ngo procedure for registration is crucial to ensuring a smooth legal setup. While initial investments may seem high, strategic planning and effective fundraising can help sustain the NGO in the long run.