[vc_row][vc_column][/vc_column][/vc_row][vc_row][vc_column][gem_table]VARIOUS FORM OF NGO IN INDIA
| Particulars | Trust | Society | Section 8 Company |
| Meaning | It is considered to be the oldest form of charitable organizations. It is, in essence, an arrangement between parties whereby one party holds ownership over property on behalf of another person | It is formed when a collection of people come together for a common charitable purpose. But it is not limited to charitable purposes but may extend to multiple other fields. | It is formation of company with the objects of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object and whereby they apply any profits into furthering the objective. |
| In this trustee will hold office for lifetime without the need for an election. | Its managed by Elected Body and allows for an easy exit of its members | · Form section 8 company, If the purpose is for executing a wide range of activities.
· Section 8 company will get high reliability and credibility as it is an approved establishment by the central government.
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| Governing Legislation | Bombay Public Trust Act,1950 | Societies Registration Act,1860.
Bombay Public Trust Act,1950 In the state of Mahrashtra since the registrar of societies is the charity commissioner, all the societies also have to be registered as a trust |
Companies Act, 2013 |
| Registered as | NGO/NPO | NGO/NPO | NGO/NPO.
Section 8 company will not mention PVT limited in the end of the name. |
| Document of constitution | Trust Deed | MOA (memorandum of association) and rules and regulations | MOA (memorandum of association) and AOA (articles of association) |
| Registration Authority | Charity Commissioner | Charity Commissioner | Registrar of Companies (ROC) or Regional Director |
| Minimum members required | 3 trustees minimum | 7 members minimum | Minimum 2 directors and 2 shareholders required. Director and shareholder can be the same person |
| Annual compliances | Annual Accounts Needs to be submitted to Charity Commissioner and its Income Tax Return | Annual Accounts Needs to be submitted to Charity Commissioner and its Income Tax Return | The company must file the annual returns and accounts with the ROC and ITR |
| Grants and subsidies from the government | Very Rare chance to get | Rare chance to get | Likely possible to get |
| Preference in registration under FCRA | Low preference | Low preference | Preferred |
| Registration under The Income Tax Act, 1961 | Allowed | Allowed | Allowed |
| Transparency | Medium | Medium | High |
| Legal right over the property | Held by the trustee | Held in the name of the society | Held in the name of the company |
| Registration period (approximately) | 30-60 days | 20-25 days | 30-45 days |
| Registration Cost (approximately) | 20,000 | 15,000 | 15,000 |
| Annual Compliance Cost (Minimum) | 10,000 | 10,000 | 10,000 |
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