A non profit or public charitable organisation can be registered in India as a:
1. Charitable Trust
3. Section 25 Non Profit company under Section 25 of Indian Companies Act, 1956
Registration of Charitable Trust
Registration of a Charitable Trust is under Relevant State Act or Bombay Public Act 1950. Its Jurisdiction is Deputy Registrar or Charity Commissioner. The Registration document required to register a Trust is Trust Deed. The Trust Deed is to be executed on a Non Judicial Stamp Paper, value of which will vary from state to state.
Minimum Number of Members required to register a Charitable Trust is 2. There is no Maximum Limit of Members.
The Board of Management of Trust consists of Board of Trustees or Trustees. Board of succession on Board of Management is Appointment or election.
Registration of Charitable Society
Registration or Legislation of a Charitable Society is under The Societies Registration Act, 1860. Jurisdiction is under Charity commissioner of relevant state or Registrar of Societies. Registration can be done as a Society in Particular State. The registration document required is Memorandum of Association and Rules and Regulations. There is no requirement of stamp duty to register Memorandum of Association and Rules and Regulations.
Minimum number of members required to register a Society is 7 (Seven). There is no upper limit prescribed for number of members.
The Board of Management of a Society consists of Governing body or Council, Managing Committee or Executive Committee. There can be President, Vice President, Secretary, Treasurer etc. Mode of succession on Board of Management is by appointment or election by members of the General Body.
Registration of Section 25 Company
Statute or legislation of a Section 25 Company is under the Indian Companies Act, 1956. Jurisdiction is under the Registrar of Companies. Registration will be done as a Company under section 25 of Indian Companies Act, 1956. The registration documents required are Memorandum and Articles of Association and Regulations. Forms like form 1A, form 1, Form 32, form 18 etc are also required at the time of registration. No stamp paper is required for Memorandum or Articles of Association. But normal fee prescribed by the Registrar of Companies needs to be paid for registration of a Section 25 Company. A section 25 Company should file its Balance Sheet, Income and Expenditure Account and Annual Return etc from time to time with the registrar of Companies.
Minimum Number of Members required to form a section 25 company is 3 and there is no upper limit prescribed.
The management of a Section 25 company consists of Board of Directors or managing Committee. Further appointment will be done by election in the General body meeting.
License from Charitable Commissioner
A section 25 company needs to get license from the Charity commissioner of particular state or any other prescribed authority.
Registration under section 12 A and 80-G of Income Tax Act
A Charitable Trust, Charitable Society or Section 25 company needs to Register with the Income Tax Department for exemption under section 12 A of the Income Tax Act to get exempted its income from tax liability. Registration is necessary to get exemption under section 80-G of Income Tax Act to exempt the Income received by way of donation, from tax liability.
Penalty under Income Tax Act 1961: Sections 158BFA(2)221(1), 271(1)(b), 271(1)(c), 271(1)(d), 271(4), 271A, 271AA, 271AAA, 271B, 271C, 271CA, 271D, 271E, 271F, 271FA, 271FB, 271G, 272A(1), 272A(2), 272AA, 272B, 272BB