An NGO is a non-governmental organisation that works to improve society at large through philanthropic endeavours. Depending on the activity you want to pursue, you can start it as a Trust, a Society, or a Non-Profit Company [Section 8 Company].
All non-profit organisations, including Trust, Societies, and Section 8 Companies, are collectively referred to as NGOs in India. Such non-profit organisations are also known as "Sangathan," "Sangh," and "Sangam." All non-profit NGOs are eligible for an income tax exemption.
These are occasionally mistaken with non-profitable businesses, which denotes a conventional company that is not turning a profit.
Vakilsearch will assist you in making the best decision and will walk you through the full NGO registration procedure.
Registration of NGO in India
Trusts, also referred to as charitable trusts more generally, are one of the ways that an NGO can be registered. A "trustor" or "settlor" who transfers the assets to the second party or "trustee" for the benefit of the third party or "beneficiary" creates a legal body known as a "trust" in their name. Trusts are established to aid and assist the underprivileged groups in society. A trust can be established by any group of people, and as a result, there are no special laws in India that govern public trusts. However, some states, such as Maharashtra and Tamil Nadu, have their own Public Trust Act.
A society is an organisation that can be founded by a group of people who are committed to advancing knowledge, the arts, literature, social welfare, and practical information. Additionally, societies seek to maintain public libraries and museums as well as create funding for military orphans.
The Societies Registration Act of 1860 governs societies. To qualify for tax exemption, they must be registered with the relevant state's Registrar of Societies.
Section 8 Companies
A trust and a society are comparable to a Section 8 company. Promoting the arts, science, commerce, sports, social welfare, religion, charitable giving, and environmental protection are the goals of Section 8 companies. They have a Companies Act, 2013 registration for charitable purposes. They enjoy greater credibility with donors, government agencies, and other interested parties.
Get complete info, visit: NGO and Trust Registration