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NGOs are legally established organizations which are generally considered to be non-profit oriented groups whose ultimate purpose is to work for public interest, and they work independently from the Government. Generally, the activities of NGO’s are to promote the interests of the poor, protect the environment, provide basic social services, or undertake community development and to promote the art, culture and science in India. The full form of NGO is Non-Governmental Organization, NGO’s are also referred to as Non-Profit Organizations (NPO’s) sometimes
Types of NGO Registrations in India:
In India if a person wants to establish an NGO can go for these 3 types of registration:
Indian Trust Act, 1882 governs the procedure of registration and maintaining the trust in India although various states also enacted their own trust acts. 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:
1. Private Trust
Private trust is basically a financial vehicle that transfers property from its owner to a trust for the lawful purpose. The property doesn’t just mean real estate. It could be cash, shares or any other valuable asset.
Public trust is set up as per the applicable Act and works in the field of healthcare, education, support of the underprivileged and for charitable purpose.
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:
- Arts, literature, educational, cultural, charity, fine arts and crafts
- Knowledge of commerce and industry
- Promotion of scientific research and temperament in the Indian society
- Dissemination of political education and training
- Promotion of Sports related activities
- Diffusion of any knowledge or any public purpose,
- Maintenance of reading room and libraries
- Preservation of historical monuments, technical and philosophical research.
Section -8 Company (Foundation)
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.