Some business structures are formed for non-profit and charitable purposes. These can be in the form of trusts. Different laws regulate trusts in India. Before starting a trust, it is essential to get the trust registered. Trust can be of two type – Public trust or private trust.
Non-Governmental Organization (NGO) is an entity that works for charitable purposes and is known as not-for-profit making organization. NGO works towards the promotion of arts, science, sports, education, social welfare, religion, charity, and more.
Company under Sec. 8
Any Company registered under Section 8 Company is Non-Profit Organization (NPO) and it has motive of promoting arts, commerce, research, social welfare, religion and intends to use its profits or other income for promoting these objectives.
12A and 80G Registration
Registering under the 12A section allows the NGO exemption from tax rates. The 80G section, on the other hand, ensures that a person donating to the NGO can deduct the amount from their taxable income, which leads to more donations
Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010.
A society is an association of several individuals which is govern and act cooperatively for some communal purpose. Societies are usually registered for the activities like sports, music, culture, religion, art, education, etc.