An NGO can be set up for the improvement of any useful purpose like sports, education, research activities, etc. The term Non-Government Organization does not mean that the Company cannot generate profit or income, but it essentially means applying the income for further promotion of the object and not for distributing it to the promoters.
NGO Can be formed in three ways:
- Section 8 Company (as per companies act 2013) (Previously it was Sec 25 company as per companies act 1956)
A Non-Government Organization means a trust, company, or other association of persons
- Established for a public purpose and
- The income and property of which are not distributive to its members or office bearers but as a fair return for assistance contributed.