Indian Trust Act, 1882 governs the procedure of registration and maintaining the trust in India although various states also enacted their own trust acts. Minimum members required for registration of Trust is 3 members. Further, the instrument by which this entire trust is created is called the “trust deed”.
Trust as an NGO in India can be registered as:
Society NGO is incorporated under the Society Registration Act, 1860. Societies are formed to serve society and not to earn profits. A minimum number of 7 persons who are above 18 years of age can form a society or an association. There is no such limit for maximum number of persons. The States have defined their own act for formation of societies and their scope of area of work is restricted to the State in which it is registered.
The main objective of society registration are as follows:
In India, Section-8 Company is regulated by the Indian Companies Act, 2013 and is administered by the Ministry of Corporate Affairs, Government of India.
The Section 8 Company means a Company formed with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members.
This type of NGO is favorable for those who want to work on PAN India Basis and on a greater scale. Minimum members required to incorporate Section-8 Foundation is 2 members.
S.No. | Particulars | Trust | Society | Section-8 Foundation |
1 | Act Governance | Indian Trust Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 |
2 | Members | Minimum:3 | Minimum:7 | Minimum of 2 Directors/Shareholders |
3 | Jurisdiction | State in which it is Registered | State in which it is Registered | PAN India |
4 | Annual Compliance | Basic ITR Filing | Society Audit and ITR | Audit and ROC Filing |
5 | Registration Document | Trust Deed | Society Certificate and Byelaws | License , MOA and AOA |
Depending on the type of work and the area of operations, you should choose the type of NGO. It is better to consult any professional to understand the concepts.
First, you need to choose between Trust, Society and Section-8 Foundation. Depending upon the entity chosen, choose the name of your Organisation and collect the documents required. Contact NGO Registration Consultant and proceed with the registration.
Section 80G and 12A Registrations are required by an NGO for claiming tax benefits and can be applied soon after registration as provisional and final can be applied once you start the operations. For more information read our complete guide.
Yes, the Government employees or officers can become part of NGOs.
The minimum numbers of members required to form an NGO are:
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