Ngo registration

If your intentions are genuine and no hidden agenda is there, you  shall not encounter any problems by using the same address of your friend. Why only using the address? What about functioning of the NGO? Don't you need space? Where will  you take the space? May be a different address? or the same address of your friend?  If you are going to use the space provided by your friend for the activities of NGO, you can have a rent agreement for payment of some nominal rent. That will solve all the problems. 

It all depends upon your real intention for establishing the NGO. If it is only "on the paper NGO" and funds are being received in the name of NGO, then you shall be under the scanner of various authorities concerned.  In case you are planning to get donations/contributions from abroad, you have to take specific written permission from Ministry of Home Affairs in therms of FCRA Act.