Registered Societies
Societies Registration Act, 1860 is a central act for registering not-for-profit organizations. Almost all the states in India have adopted (with modifications, if any) the central Act for creating state level authorities for registering various types of not-for-profit entities.
According to the act any seven persons who subscribe to the Memorandum of Association (MOA) can register a society. The memorandum should include names of the society, its objectives, its names, addresses and occupations of the members subscribing to it as well as the first governing body to be constituted on registration.
According to the act any seven persons who subscribe to the Memorandum of Association (MOA) can register a society. The memorandum should include names of the society, its objectives, its names, addresses and occupations of the members subscribing to it as well as the first governing body to be constituted on registration.
Public Trust
Public trust can be created for public charitable purposes. There is no All India Level Act for setting up public charitable trusts. Some of the states in India has enacted the Public Charitable Trust Act, while most states in India does not have a trust act. An NGO can be created only under a public trust act.
A trust can be registered in one state, but the same has the scope to operate in any number of states. In the state of Maharashtra all organizations that are registered as 'Society' are by default also registered as Public Trust.
Private Trust
A private trust, created under and governed by the Indian Trusts Act of 1882, aims at managing assigned trust properties for private or religious purpose. A private trust does not enjoy the privileges and tax benefits that are available for public trusts or NGOs.
Non Profit Companies (Section 25)
Conferring of corporate personality to associations that promote cultural and charitable objectives, but exempting them from the operation of some cumbersome requirements (which are essentially for regulation of business bodies but are difficult for compliance by non-profit companies), are the noteworthy features that are provided under the companies act, 1956.
According to section 25(1): "Where it is proved to the satisfaction of the Central Government that an association is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful objectives, intends to apply its profits, if any, or other income in promoting its objectives, and to prohibit the payment of any dividend to its members, the Central Government may, by license, l direct that the association may be registered as a company with limited liability, without addition to its name of the word "Limited" or the words "Private Limited"
Source: Wikipedia
