If you are thinking for starting a new Non Government Organisation (NGO) in India then first you have to know, what is an NGO? and which popular NGO entity is best for your goal which you want to achieve;
Any organisation working for a social, cultural, economic, educational or religious cause is termed as an NGO or Non Government Organisation. NGOs have made favourable indents to needy sections of Indian society at par with a constantly changing socio-economic climate. NGOs have reached out to all sections of society including women, children, pavement dwellers, unorganised workers, youth, slum-dwellers and landless labourers.
Documents requirements for an NGO
- Income & Expenditure Statement
- Receipt & Payments Statement
- Balance Sheet
- Auditors Report
- Activity/Annual Report of The Organisation for the previous year.
- Budget Estimates for the project for current year
- Details of Beneficiaries
- Details Managing Committee
- Details of Employees on Form
- Copy of Registration Certificate
- Memorandum of Association / bye-laws/ Articles.
- Utilisation Certificate in respect of grants released in the previous year
- List of Assets acquired wholly or substantially out of government grants under GFR 19
An NGO can also be formed under various legal identities:
(i) Society registered under Societies Registration Act, 1860.
(ii) Trust (Formed under the Trust deed and registered with Income Tax Authority.)
(iii) Limited company incorporated under section 25 of the Companies Act, 1956
(iv) Co-operative Society
(v) Multi-State Co-operative Society
(vi) Trade Unions
(vii) Political Party in India
What is Trust?
A Charitable trust or Trust is a legal entity which can be set up by anyone who has decided to commit themselves in principle to setting aside some of their assets or income for Charitable causes. The main obligation is to work within the charitable purposes and the powers set out in the Trust Deed
What is Society?
A Society is formed when people come together to do something with some common purpose which is legal and useful for others. A society should generally not get into profit making activities. Societies are governed by the Societies Registration Act 1860.
What is Sec. 25 Company?
NON PROFIT COMPANY or Company under sec. 25 – 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. It is a company with limited liability that may be formed for “promoting commerce, art, science, religion, charity or any other useful object,” provided that no profits, if any or other income derived through promoting the company’s objects may be distributed in any form to its members.
The main differences between a trust, a society and a section 25 company
Section 25 Company
|Statute/ Legislation||Public Trust Act like Bombay Public Trusts Act of 1950||Societies Registration Act of 1860||Companies Act of 1956|
|Jurisdiction of the Act||Concerned State where registered||Concerned State where registered||Concerned State where registered|
|Authority||Charity Commissioner||Registrar of Societies||Registrar of Companies|
|Registration||As Trust||As society (and by default also as Trust in Maharashtra & Gujarat)||As Section – 25 company|
|Main Document||Trust deed||Memorandum of Associations and Rules & Regulations||Memorandum and Articles of Association|
|Stamp Duty||Trust deed to be executed on non-judicial stamp paper of prescribed value||No stamp paper required for Memorandum of Associations and Rules & Regulations||No stamp paper required for Memorandum and Articles of Association|
|Number of persons needed to register||Minimum two trustees; no upper limit||Minimum seven; no upper limit||Minimum seven; no upper limit|
|Board of Management||Trustees||Governing body or council/managing or executive committee||Board of Directors/Managing Committee|
|Mode of succession on board of management||Usually by appointment||Usually election by members of the general body||Usually election by members of the general body|
In India, cooperative societies were regarded as ideal instruments to motivate the people to come together and help themselves in the process of eliminating the unscrupulous middlemen making huge profit at the expense of the society.
Multi-State Co-operative Societies:
Those co-operative societies, whose objects are not limited to one state and serving the interests of members in more than one state for social and economic betterment of its members are considered Multi State Co-operative Society.
Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions
Political Party is also a type of an NGO because it has many advantages which a NGO have. If you are thinking to make a new Political Party in India then first you have to know, what is a Political Party?
A political party is a group of citizens who come together to contest elections and hold power in the government. They agree on some policies and programmes for the society with a view to promote the collective good. Since there can be different views on what is good for all, parties try to persuade people why their policies are better than others. They seek to implement these policies by winning popular support through elections.
Three components are needed for a political party:
- The leaders,
- The active members and
- The followers
The Indian political parties are categorized into two main types:
- National level parties:
National parties are political parties which, participate in different elections all over India.
- State level parties:
The state level political parties are those, which are recognized in less than four states and they work in the states.