Non Government Organisation
NGO (Non-Government Organisation) is an organization that works for non-profit/ charitable purposes. NGOs can be registered in India under any of the following manners:
- Trust under Indian Trusts Act, 1882
- Society under Societies Registration Act 1862
- Section 8 Company under Companies Act, 2013
Trust
A trust is meant for the welfare of the public. A trust can have varied interests, such as education, animal welfare, religious or even recreational, but is typically set up only when property is involved (schools or hospitals, for example). Most Indian states have their own act related to trusts, while the others are governed by the Indian Trust Act, 1882. To complete a trust registration, all you need to do is register a trust deed.
Society
A society is an organization registered under the Indian Society Act, 1860. It has a proper governing community and managing council that runs and carry out its principles. The setting up and running of a society is similar to a housing society. Just like a Section 8 Company, a society also needs Memorandum and Articles of Association; it will also have byelaws that can be amended by the managing council.
Section-8 Company
A Section-8 company has limited liability and is often formed to promote commerce, recreational art or religion. The main prerequisite of Section 8 organisations is that the profits that are earned by these organizations cannot be divided among the members and could be only used to promote and strengthen the work. A Section-8 company is to be set up just like a private limited company.