Registering a not-for-profit organisation in India

Special licensing

In addition to registration, a not-for-profit organisation engaged in certain activities may also require a special license or permission. Some of these include (but are not limited to):

• 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 issued either by the Ministry of Home Affairs or by the relevant local authority (i.e. district magistrate)
• to open an office and employ people, the not-for-profit organisation should be registered under the Shop and Establishment Act
• to employ foreign staff, an Indian not-for-profit organisation needs to be registered as a trust/society/company, have a Foreign Contribution (Regulation) Act, (FC(R)A) registration and also obtain a 'No Objection Certificate'
• a foreign not-for-profit organisation setting up an office in India needs to be registered as a trust/society/company and needs permission from the Reserve Bank of India and also a 'No Objection Certificate' from the Ministry of External Affairs

Note: CAF India would like to clarify that this material provides only broad guidelines. We recommend that legal and/or financial experts be consulted before taking any important legal or financial decision or arriving at any conclusion.

Source: Working with the not-for-profit sector in India (Allavida, London, 2003)