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TOPIC : How do i register a NGO? Should it be a society or a Trust? What is the difference?
Posted on 09 July 2014 at 13:27:00

NGOs in India are registered under the Societies Registration Act, 1860, which is a central Act. According to Section 20 of the Act, the following societies can be registered: charitable societies, military orphan funds or societies, societies established for the promotion of science etc.

Mr. Nitin Kumar Bhatia


New Delhi, India

Free Member, Joined :07/09/2014
No of Topics Posted : 1
Reply/Comments : 0

Re: How do i register a NGO? Should it be a society or a Trust? What is the difference?
Posted on 09 July 2014 at 14:27:00 [Message #3031 ]

An NGO can be categorized into three different legal entities,

Trust:
A trust is an agreement between people (called trustees) to manage property over which they have control either to benefit other people (called beneficiaries) or for charitable purposes.

Society:
Society can be formed for different purposes or Aims and Objectives like – Religious Society, Educational Society, Housing Society, Resident Welfare Society, Institute / School registration, Public Charitable Society, Women Welfare Society, Child Welfare Society, Orphanage Society, Old Age Home society, to save Nature, Environment and Art and Culture. A Society can work with single objective or it can serve to different sections of society with different aims and objectives.

Section 25 Company:
Companies which are formed for the following purpose are known as Section 25 Companies or Association not for Profit

For the purposes of promoting commerce, art, science, religion, charity to any other useful object
With intention to apply its profits or other income for promoting its objects, and • Which prohibits payment of any dividend to its members, Section 25 Company is a voluntary association of person formed for promotional activities. Besides establishing a Trust and Society, the other alternative to establish a Non – Profit organization is Section 25 Company. Section 25 Companies are formed as Public or Private Company having a limited liability under the Companies Act 1956. These companies can be formed with or without share capital, in case they are formed without capital, the necessary funds for carrying the business are brought in form of donations , subscriptions from members and general public.

Ms. Aparajita

(Tradeindia Expert)

Vakil Search

Vakil Search
Chennai, India

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