1. CIVIL SOCIETY ORGANISATIONS
LEGAL FRAMEWORK
SUDHIR VARMASUDHIR VARMA
SUDHIR VARMA
FCA; CIA(USA)

2. UNDERSTANDING THE TERM
CSO-Civil Society Organizations
NGO – Non Government Organizations
NPO – Not for Profit Organizations
SUDHIR VARMA
FCA; CIA(USA)

3. Laws effecting Civil Society Organizations
Registration
Operations
Work Force
SUDHIR VARMA
FCA; CIA(USA)

4. 1. REGISTRATION Charitable and Religious Trusts Act, 1920.
Charitable Endowments Act, 1890.
Emblems and Names (Prevention of
Improper Use) Act, 1950.
Registration Act, 1908
Societies Registration Act, 1860.
Indian Stamp Act, 1899.
Indian Trusts Act, 1882.
The Companies Act, 1956
SUDHIR VARMA
FCA; CIA(USA

5. OPERATIONS Consumer Protection Act, 1986 Indian Contract Act, 1872.
Copyright Act, 1957.
Designs Act,
Environment Protection Act, 1886.
Hire Purchase Act, 1972.
Limitation Act, 1963.
Negotiable Instruments Act, 1881.
Patents Act, 1970.
Public Liability Insurance Act, 1991.
Sale of Goods Act, 1930.
Trade Marks Act, 1999.
Water (Prevention and Control of Pollution) Act, 1974
The Companies Act, 1956
Foreign Contribution Regulation Act
VAT
Service Tax
SUDHIR VARMA
FCA; CIA(USA

6. WORK FORCE Employers’ Liability Act, 1938.
Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.
Employees’ State Insurance Act, 1948.
Equal Remuneration Act, 1976.
Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988.
Maternity Benefit Act, 1961.
Minimum Wages Act, 1948.
Payment of Bonus Act, 1965.
Payment of Gratuity Act, 1972.
Payment of Wages Act, 1936.
Personal Injuries (Compensation Insurance) Act, 1963.
Sale Promotion Employee ( Conditions of Service) Act, 1976.
Weekly Holiday Act, 1942.
Workmen’s Compensation Act, 1923.
SUDHIR VARMA
FCA; CIA(USA

7. LEGISLATION TO DISCUSS
REGISTRATION
- Indian Trust Act, 1882
- Societies Registration Act, 1960
- The Companies Act, 1956
2. OPERATIONS
- Indian Contract Act, 1872
- Negotiable Instruments Act, 1881
- Foreign Contribution (Regulation) Act, 1976
3. WORKFROCE
- Employees’ Provident Fund & Misc. Provisions at 1952
- Employees’ State Insurance Act, 1948
- Payment of Bonus Act, 1965
- Payment of Gratuity Act, 1972
- Weekly Holiday Act, 1942
SUDHIR VARMA
FCA; CIA(USA

8. INDIAN TRUST ACT, 1882 The settlor The trustees. Minimum 2 Corpus fund
Stamp duty on the corpus fund
Trust deed
Governing the trust
The Registrar
SUDHIR VARMA
FCA; CIA(USA

9. SOCIETIES REGISTRATION ACT, 1860
An Act to register and monitor literary, scientific
and charitable societies.
2. A common Act giving powers to each state to make their own rules.
3. Inspector General of Registration
SUDHIR VARMA
FCA; CIA(USA

10. REGISTRATION
1. Minimum 7 desirous persons required to register a society.
2. Minimum 8 desirous persons from 8 different states required to register a society with All India status.
3. The desirous persons must meet to resolve to register the society and a draft Memorandum of Association and Rules and Regulations are approved.
SUDHIR VARMA
FCA; CIA(USA

11. Documents required for registration :-
1. Memorandum of Association
- Name
- Registered Office
- Area of Operations
- Objects : Main Objects & Incidental Objects
- Governing Body
- Office Bearers
- Desirous Persons
This document must be signed and witnessed by all the desirous persons on each page.
2. Rules and Regulations specifying how the society will be managed and governed.
This document must also be signed by all the desirous persons on every page.
An affidavit from the Secretary that none of the desirous persons are related by blood.
4. Proof of address of the registered office.
5. Power of attorney from all the desirous persons.
SUDHIR VARMA
FCA; CIA(USA

12. THE COMPANIES ACT, 1956 Salient features are :-
Civil Society Organizations can be registered under Section 25 of the Companies Act, 1956.
The words “Private Limited“ or “Limited” need not be used.
The company need not have a capital.
Proposed name approved by Registrar of Companies.
Proposed Memorandum & Articles of Association is approved by the Regional Director who also then issues a license.
After the license, the Registrar of companies will then register the company at a fee of Rs. 50/-.
Normal papers for registration, Form 1, 18 and POA to be deposited.
SUDHIR VARMA
FCA; CIA(USA

13. THE COMPANIES ACT, 1956 Salient features are :-
17 sections of the Act not applicable.
The Board / Governing Body
Meetings of the Governing Body
Meeting of Members
Annual returns to Registrar
SUDHIR VARMA
FCA; CIA(USA

14. INDIAN CONTRACT ACT, 1872 Salient features are :-
A contract can be oral and binding.
A valid contract should have
An offer
An Acceptance properly communicated
Consideration from each party
Object to be legal and viable
Person should be major with sound mind
Free consent, undue influence, misrepresentation,
fraud, mistake.
3. Specific Performance
SUDHIR VARMA
FCA; CIA(USA

15. NEGOTIABLE INSTRUMENTS ACT, 1881
Salient features are :-
Promissory note
Bills of exchange – cheque
Dishonored cheques – notice within 15 days
SUDHIR VARMA
FCA; CIA(USA

16. FOREIGN CONTRIBUTION (REGULATION) ACT, 1976
Salient features are :-
Applicable to persons, organizations, branches
Regulator – Ministry of Home Affairs
Designated bank account
Prior Permission (Form FC 1A)
Registration (Form FC 8)
Annual Return (Form FC 3)
SUDHIR VARMA
FCA; CIA(USA

17. EMPLOYEES’ PROVIDENT FUND & MISC. PROVISIONS ACT, 1952
Salient features are :-
More than 20 people
Payable on basic pay
Cap of Rs. 6,500/-.
Current rate 12.5%.
SUDHIR VARMA
FCA; CIA(USA

18. EMPLOYEES’ STATE INSURANCE ACT, 1948
Salient features are :-
Applicable to production units / factories.
More than 10 with power and more than 20 without power.
Current contributions
Employer 4.75%
Employee 1.75%
SUDHIR VARMA
FCA; CIA(USA

19. PAYMENT OF BONUS ACT, 1965 Salient features are :-
Applicable where employees are more than 20 including branches and departments.
8.33% of basic pay
Not applicable to “Not for Profit Units”.
SUDHIR VARMA
FCA; CIA(USA

20. PAYMENT OF GRATUITY ACT, 1972
Salient features are :-
Applicable to units with more than 10 employees
Continuous employment of 5 years.
15 days salary for each completed year of service.
Not applicable to “Not for Profit Units”.
SUDHIR VARMA
FCA; CIA(USA

21. WEEKLY HOLIDAY ACT, 1942 Salient features are :
Applicable to shops, restaurants and theatres
One complete holiday in a week
No deduction of pay
Cannot change weekly by more than once in three months.
State Government can specify different working hours for
- different classes of shops
- different areas
- different times of the year
SUDHIR VARMA
FCA; CIA(USA

22. Thank You SUDHIR VARMA FCA; CIA(USA)
S.M. VARMA & CO., Chartered Accountants
B-57, 2nd Floor, New Rajinder Nagar, New Delhi –
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