A public charitable trust is a possible form of not-for-profit entity in India.
Public charitable trusts can be established for a number of purposes, including the relief of poverty, education, medical relief, provision of facilities for recreation, and any other object of general public concern and utility.
Indian public trusts are generally irrevocable in nature. But it can also be liquidated by the government if the situation demands.
A Non Governmental / Profit Organization could be registered under any of the following Indian Acts:
A Non-Governmental Organization (NGO) is perceived to be an association of persons or a body of individuals. Such a body with a definite name and objective may be a registered one or unregistered one. The legal character is acquired only after registration (incorporation) of the association of persons under any of the applicable laws. An NGO may be formed as a society.
A society may be defined as a company or an association of persons (generally unincorporated) united together by mutual consent to deliberate, determine and act jointly for the same common purpose.
society registration
As per the Societies Registration Act, 1860, (see Annexure 2, VI), a society can be formed by minimum seven (or more) persons, eligible to enter into a contract, for any of the following purposes:
1.) Grant of Charitable assistance;
2.) Creation of military orphan funds;
3.) Promotion of science, literature or the fine arts; instruction and diffusion of useful knowledge, diffusion of political education, foundation or maintenance of libraries or reading rooms for general use of the members of the public, public museums and galleries of paintings and other work of art, collections of natural history, mechanical and philosophical inventions, instruments or designs Besides, the State Governments are empowered to add more objects to the above list. The chief advantage of forming society is that it gives a corporate appearance to the organization, and provides greater flexibility as it is easier to amend the memorandum and bye-laws of the society that in case of a trust, terms of which are strictly manifested in the trust deed. However, the formation of society requires more procedural formalities than in case of trust.
A.) As a Charitable Trust under Bombay Public Trust Act 1950
B.) As a Society registered under the Societies Registration Act 1860 – A Central Statute
C.) As a Company licensed under section 25 of the Companies Act 1956. If the ngo registration is being made in Maharashtra and Gujarat, it has to be registered under A and B of above Acts. But in the case of any other state, they may have their own state legislature along with the central statue of above, for the registration of voluntary organization.
