The following persons are also eligible for formation of a society, besides the individuals:
1.) Foreigners: Foreigners can subscribe to the memorandum of the society.
2.) Partnership firm: The position of Partnership firm regarding its eligibility to subscribe to the memorandum of the society is not clear from provisions of the Partnership Act 1932, Societies Registration Act 1860 or any other judicial decision. However simple analogy can be drawn by keeping in view the provisions of Sec 25(4) of Companies Act, 1956 which permits a partnership firm to become a member of a Section 25 company and provides that the firm may be a member of any association or company registered under the provisions of the Companies Act 1956. However on dissolution of the firm, the membership of the firm to such an association or company will lapse. Therefore drawing a parallel from the above, we may deduce that a partnership firm may subscribe to the memorandum of society.
3.) Limited company: Company can subscribe to the memorandum of society.
4.) Registered Society: A registered society can subscribe to memorandum of association of proposed society
Generally for receiving funding from either Indian or foreign sources,the following are essential conditions: .
(i) Legal Status: NGO should have a legal status (i.e. should have been registered as a Society or a Trust or a Company under Sec.25).
(ii) Constitution and Working Rules: The NGO should have proper constitution and objectives framed in the form of Memorandum and Articles of Association / Byelaws / Trust Deed.
(iii) Management: It shall have a Governing Body with authority to conduct its affairs to achieve the main objectives.
(iv) Non profits character: It should do its activities not for any profit but with an objective to serve the targeted population . Even if it carries on some auxiliary business in the interest of development of its target audience, such profits shall not be distributed by way of dividend to any of its members.
(v) Involvement: It shall consist of such people who are voluntarily involved in rendering the services to the target Society and also shall be able to attract volunteers.
(vi)Not to discriminate: It shall not indulge in discriminating the target group nor use the resources mobilized for furtherance of interests of any political party or involve in creating communal disharmony.
(vii) Past record: Normally the existing NGO with past record of good service and non discriminating in nature are funded.
