NGO (Non-Government Organisation) is an organization that works for non-profit/ charitable purposes. In India, NGO is an umbrella term for all non-profit organizations including Trust, Society, and Section 8 Company.
The main purpose of creating a company as a section 8 company is to promote non-profit objectives like trade, commerce, arts, charity, education, religion, environment protection, welfare, sports, research, etc. The profits/incomes of the corporate if any, are applied towards promoting the objectives of the organization and don’t seem to be distributed as dividends to its shareholders.
A minimum of two directors is required if the Section 8 company is to be incorporated as a personal Ltd., and a minimum of three directors just in case of incorporation as a public Ltd. the utmost number of members is 200 just in case of a private Ltd., whereas for a public Ltd., there’s no such limit.
Trust: (Trust under Indian Trusts Act, 1882)
one among the ways during which an NGO are often registered is Trust or more commonly called public trust. Trust may be a legal entity created by the “trustor” or “settlor” who transfers the assets to the second party or “trustee” for the advantage of the third party or “beneficiary”. Trusts are formed to assist and support the deprived sections of the society.
Societies: (Society under Societies Registration Act 1860)
A society is an entity which will be created by a bunch of people united in their cause for promoting science, arts, literature, welfare and useful information. additionally, societies work for creating military orphan funds, maintaining public museum and libraries.
Section 8 Companies: (Section 8 Company under Companies Act, 2013)
a section 8 company is analogous to a trust and society. The objectives of a neighbourhood 8 Companies are to market arts, science, commerce, sports, welfare, religion, charity and environmental protection. they’re registered under the businesses Act, 2013 for charitable purpose. They need better credibility among government bodies, donors and other stakeholders. Also, there’s no requirement of minimum paid-up capital just in case of a section 8 company.
Section 8 Company:
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