Laws applicable to an NGO in India
In India, you can register an NGO under any of the following Acts:
· Trust under Indian Trusts Act, 1882
o It is not mandatory for a Charitable Trust to obtain registration.
o Unless the Trust wants to claim income tax exemptions or is based in a state that is governed by the Public Trusts Act.
· Society under Societies Registration Act 1860
o A group of seven or more people can form a society.
o Further, its formation is more complicated than that of trust. But it has more flexibility in terms of regulations.
· Section 8 Company under Companies Act, 2013
o Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object.
o However, it cannot pay dividends to its members.
o Further, these companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members.