An NGO can be started under three Acts: Public Trust Act of all states, Indian Society Act and Companies Act. In India, a trust, society, organization, association, non-profit company all come under one umbrella term NGO. Income tax exemption is available to all non-profit non-governmental organizations.
At eVakil, we will help you make the right choice and guide you through the entire NGO registration process.
So now after reading this, get your NGO registered to get all the above mentioned benefits.
Thus, picking the right type of NGO depends on your plan, vision and mission.
Hope reading this will help you start an accurate NGO according to your objectives.
Each law describes the establishment of a different type of organization, namely, trust registration, society registration, and non-profit company registration. The selection of the registration process is important for a charitable firm. Our experts will help you choose the option that suits you and guide you with the online registration process.
The legal status of organizations ensures that they are accountable for all the money and donations they collect.
A registered NGO thinks, acts and develops systematically and acts accordingly. For example, when a person donates resources to a charitable fund, it is received in the name of the organization and used for the benefit of others. In an unregistered firm, property can be acquired in one’s name and used for his benefit..
A company registered as an NGO remains within the moral, social and legal parameters of the society.
The basic requirement for running a company should be a bank account under its name. To open an account, it is mandatory to register as a non-profit organization.
Registration of an NGO will also help in tax exemption if it is registered under Income Tax exemption.
The way in which you can register a non-governmental organization is to register as a trust. Such a method is used by non-governmental organizations who work with poverty alleviation, education and providing medical relief. You want to keep in mind that trusts are immutable. This implies that they cannot modify or terminate without the permission of the court. While there is no central law that governs public trusts, many states have their public trust act to look into the affairs of public trusts..
The Society may be referred to member-based organizations for charitable purposes. They are run by a regulatory body or a supervising committee. Unlike trusts, all societies fall under the preview of a law, known as the Societies Registration Act, 1860. Section 8 Companies.
Section 8 is a limited liability company and cannot make any profit. It is usually made to promote science, art, commerce, charity, religion or any other purpose which is useful for the society. When compared to societies and trusts, Section 8 companies benefit more in the sense that they have more legal and better credibility between government bodies and donors.
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