2023 2024 Student Forum > Management Forum > Main Forum

 
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29th February 2016, 09:06 AM
Super Moderator
 
Join Date: Apr 2013
Re: NGO Formation in India

In India Non Profit organizations/ Public Charitable organizations (NGO) can be Registered as Trusts, Societies, or a Private Limited Non Profit Company, under section-25 companies.

Non-profit organizations in India
(a) Exist independently of the state;
(b) are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity;
(c) produce benefits for others, generally outside the membership of the organisation;
(d), are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members.

NGO Registration Methods - 1

1. Trust
2. Society,
3. Non profit Company

Procedures of Formation:

Charitable Trust : It contains information on:
Name(s) of the author(s)/settlor(s) of the trust
Name(s) of trustee(s)
Name(s) if any, of beneficiary including public at large
Name by which trust shall be known
Name where principal and/or other offices shall be situated
Property that shall devolve upon trustee(s) under trust for benefit of beneficiary/ies
Intention to divest trust property upon trustee(s)

The objects of the trust:

For appointment, removal or replacement of trustee
Making them understand their rights, duties and powers
Rights and duties of beneficiary/IES


A Charitable Trust is not Required to obtain registration under the Indian Registration Act.

Society: Society is defined as company/association of persons who are united together through mutual consent for deliberating/determining/acting jointly for same common purpose.

Some Advantages of Society formation Include:

It provides a corporate appearance to organization
It provides greater flexibility as its easier for amending memorandum and bye laws of society than of a trust where all terms are strictly manifested in trust deed.

Society Inception:

Formation of ‘Society’ needs procedural formalities like:
Memorandum of Association
Rules and Regulations


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