NGO/Society Trust Registration

NGO - Non Profit Company (Section 25)
A Non-Profit Company can be formed for any non-profit activity. It is identical to an ordinary company in all respects except that it is not established for profit and commercial gain. It is also called a Section 25 Company and is a voluntary association of people, registered under the Indian Companies Act, 1956. The accountability aspect of a non-profit company because of statutory disclosure requirements is a relevant advantage of a company's operational transparency and ability to invoke and maintain public faith.

Objectives of a Non-profit company :-
Objectives of a non-profit company can be including promotion of commerce, art, science, religion, charity or any other useful object. Profits are applied for promoting only the objects of the company and no dividend is paid to its members. (Section 25 (1) (a) and (b) of the Companies Act, 1956). A non-profit company may be Public or Private. If the non-profit company is a private company, minimum of only two members are required to form it. However, if the non-profit from is for a public purpose, then a minimum of seven are needed. A 'Section 25 company' and is eligible for certain exemption from provisions of law and concessional rate of fees
 etc.

Steps for establishing a section 25 Company :-
• Application for a name.
• Memorandum and Articles.
• License under section 25.
• Registration with ROC
Society :-
According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: 'charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs. The main instrument of any society is the memorandum of association and rules and regulations, wherein the aims and objects and mode of management of the society should be enshrined.

A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee.