NGO Formation The word “NGO” is an abbreviation of Non-Governmental Organization, identical with Non-Profit Organizations, which primarily work towards social, cultural, economic, educational or religious causes. NGOs have made positive contributions for the development of weaker sections of the society. It is significant to note that all NGO, irrespective of their legal status, may acquire funds from not only an individual, firm or organization of their own country, but also from abroad under provisions of The Foreign Contribution (Regulation) Act, 1976.The NGO can be formed and organized as any one of the below explained entities:
Relative Table based on different entities for formation of NGO
Basis of Distinction |
Non-profit Company |
Society |
Trust |
Statute/ legislation |
The Companies Act, 1956. |
Societies Registration Act, 1860. |
Indian Trust Act, 1882 OR Charitable and Religious Trusts Act, 1920. |
Jurisdiction |
Registrar of Companies. |
Registrar of Societies. |
Charity Commissioner/ Registrar of Assurances. |
Objects |
Non-profit activities |
Charitable, literary, scientific etc. |
Charitable, socially beneficial and religious etc. |
Main document |
Memorandum and Articles of Association. |
Memorandum and Rules and regulations of the Society. |
Trust Deed. |
Formation |
Complex legal procedure as compared to society and trusts. |
Simple and easy. |
Simple and easy. |
Number of members required |
Minimum two and no upper limit. |
Minimum seven and no upper limit. |
Minimum two and no statutory limit. |
GIIS Financial offers the following services towards formation, execution and running of a NGO in India: