NGO Formation

Introduction

A non-governmental organization (NGO) is a voluntary group of people who work together to achieve a common goal, such as social welfare, environmental protection, or human rights. NGOs are not part of the government, but they often work with the government to achieve their goals.


Which type of NGO to choose?

The best type of NGO Registration in Gurgaon for you will depend on your specific needs and circumstances. Here is a brief overview of the pros and cons of each type of NGO:

Trust


Pros:

  • Easy to form and manage
  • No minimum capital requirement
  • Perpetual succession

Cons:

  • Trustees are personally liable for the debts and obligations of the trust
  • Trusts are not subject to as much government regulation as societies or Section 8 companies

Society


Pros:

  • Easy to form and manage
  • No minimum capital requirement
  • Perpetual succession
  • Democratic management structure

Cons:

  • Members are jointly and severally liable for the debts and obligations of the society
  • Societies are subject to more government regulation than trusts
  • Societies may have difficulty raising capital

Section 8 Company


Pros:

  • Limited liability
  • Perpetual succession
  • Separate legal entity from its owners
  • Easy to raise capital

Cons:

  • More complex to form and manage than a trust or society
  • Requires annual compliance filings with the Ministry of Corporate Affairs (MCA)
  • Minimum capital requirement of INR 1 lakh

Conclusion


The best way to choose the right type of NGO for you is to consult with a qualified professional, such as a chartered accountant or a lawyer. They can help you assess your needs and circumstances and recommend the best type of NGO for you.


Contact Adya Financial


Adya Financial is a leading financial services company that offers a wide range of services, including NGO formation and consulting. We can help you choose the right type of NGO for your needs and assist you with the formation process. Contact us today to learn more.