INVEST MP Expression of Interest (EOI) For Inviting Online Tender...
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An NGO is a non-government organization with a charitable purpose, in general for the betterment of society. It can be started as a Trust, a Society, or a Non-Profit Company [Section 8 Company], depending on the activity you are taking.
Each law defines the formation of a different type of organization, namely – Society Registration, Trust Registration, and Section 8 Company Registration. Choosing the kind of registration procedure for the charitable firm is very crucial.
Trust is a legal entity created by the “trustor” who transfers the assets to the second party called “trustee” for the benefit of the third party known as “beneficiary”. Trusts are formed to help and support the deprived sections of the community or society. Any group of individuals can register a trust and in India, as such there are no specific laws to govern or regulate the public trust, there are some states like Maharashtra have their own Public Trust Act or Laws.
A society is an entity that can be made by a group of person or individuals united in their cause for promoting science, literature’ arts, social welfare. In addition, societies work for creating for, maintaining public museums and libraries etc.
Societies are regulated or Governed by the Societies Registration Act, 1860.
Section 8 of company law is similar or identical to the trust and social act. The purpose of the Section 8 Companies act is to promote arts, science, sports, social welfare, religion, charity, and environmental protection. Registered under the Companies Act, 2013.
According to companies act the following papers required
TRUST | SOCIETY | SEC – 8 COMPANY | |
Governed by | Trust Act of each state | Societies Registration Act (State Law) | Companies Act, 2013 |
Members: | maximum of 21 members. and a minimum of 3 members and a | minimum of 7 members and the maximum member unlimited | Minimum of 2 Shareholders |
Document: | Trust Deed | Memorandum of Association | MoA, and AoA |
Board: | Founder of the Trust, Managing Trustees (Treasurer, Auditor, etc.) | Executive Committee includes (President, Vice President, Secretary, Treasurer), General Body (All members) | Directors |
Property Management | The properties of the Trust will be managed by the managing Trustees, however, the properties cannot be sold by the Trustees or by any other person without obtaining permission from the court. | The property of the society is in the name of the Society | The property[movable or immovable] of the company vests in the name of the Company and the same can be sold as per the rules mentioned under the Companies Act. |
INVEST MP Expression of Interest (EOI) For Inviting Online Tender...
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