The following forms of associations may add as NGO:
a) a trust of two or more persons as Trustees therein. The Trust may be registered under the Indian Trusts Act, 1882.
b) a company registered u/s. 25 of the Companies Act, 1956. Usually, clubs, associations of professionals get registered under this provision of the Companies Act, 1956.
c) a society of persons registered under the provisions of the Societies Registration Act, 1860 with the Registrar of the Societies, with aims and objects and a structure as laid down in the said Act.
d) a statutory body consisting membership of persons constituted by or under a statute, having a structure as laid down in the statute by which it is constituted.
e) a charitable trust constituted under the Charitable Endowments Act, 1920, any other organization akin to a society.
The details of the most common forms in which NGOs may be constituted and registered are as follows:
(i) Trust:
trust in an ngo
As a public charitable trust. A public trust, whether relating to movable or immovable property, may be created by mere delivery of possession with a direction that the property is to be held under trust. However, a written instrument of trust signed by the author and registered is always desirable.
(ii) Society:
society in an ngo
Section 20 of the Societies Registration Act lays down that charitable societies and societies established for the promotion of science, literature or the fine arts may be registered under that Act. A society registered under the said Act is a legal entity apart from its members and under Section 6 of the. said Act, it can sue or be sued in the name of its President, Chairman, Secretary or members of the governing body of Trustees. In Secretary of State India v. Radha Swami Satsangh it was held by the Bombay High Court that the registration of a charity under the Societies Registration Act, 1860 was prime fact evidence of valid dedication of property for charitable purposes.
(iii) Company:
company in an ngo
An association may be registered under Section 25 of the Companies Act, 1956 if the Central Government is satisfied that it is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object and it intends to apply its profits, if any, or other income in promoting its objects with ngo registration and to prohibit the payment of any dividend to its members. In such case,s the Central Government may by license direct that the association may be registered as a company with limited liability without the addition to its name of the word “Limited” or the words “Private Limited”.
