Public trusts can be created for public charitable purposes. An NGO can be created only under a public trust Act.
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 Trust's or NGOs.
Societies Registration Act, 1860 is a Central Act for registering not-for-profit organisations. According to the Act, any seven persons who subscribe to the Memorandum of Association (MOA) can register a society. Society Registration in Jaipur requires its registration under Rajasthan Societies Registration Act 1958.
According to section 8 (Companies Act, 2013): "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".
Once the NGO is registered, we help them get registration in section 12A/12AA and 80G for the purpose of opting tax exemptions available to an NGO carrying Charitable/Religious activities
B K Goyal & Co Chartered Accountants (CA in Jaipur) - All Rights Reserved.
B K Goyal & Co Chartered Accountant - CA in Jaipur