NGOs India

Section 135 of the Companies Act 2013

Sub- Section (1) of Section 135 of the Act read with Rule 3(2) of Companies CSR Rule, 2014

135. Corporate Social Responsibility

(1) Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

(2) The Board’s report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee.
(3) The Corporate Social Responsibility Committee shall,—
(a) formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;
(b) recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
(c) monitor the Corporate Social Responsibility Policy of the company from time to time.
(4) The Board of every company referred to in sub-section (1) shall,—
(a) after taking into account the recommendations made by the Corporate Social Responsibility Committee, approve the Corporate Social Responsibility Policy for the company and disclose contents of such Policy in its report and also place it on the company’s website, if any, in such manner as may be prescribed; and
(b) ensure that the activities as are included in Corporate Social Responsibility Policy of the company are undertaken by the company.
(5) The Board of every company referred to in sub-section (1), shall ensure that the company spends, in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy:
Provided that the company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities:
Provided further that if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.
Explanation—For the purposes of this section “average net profit” shall be calculated in accordance with the provisions of section 198.

(Source: http://www.mca.gov.in/SearchableActs/Section135.htm as on 5 December, 2018)

 

Please also check the amendment in CSR rules and clarifications: The Companies (Amendment) Act, 2017

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NGO – Trust or Society

Non-Governmental Organisation (NGO) or Non Profit Organisation (NPO) can be registered by many registration processes in India like Society, Company, Trust or any valid formation but status of the registered organisation is equal and equally recognised as NGO (Non Governmental Organisation /Non-Profit Organisation).

Registration process of NGO under Indian Trust Act, Society Registration Act, Company Registration Act or any other act/ law are different but the status of the registered organisation is equal as NGO. There is no difference in the status of NGO to get funding from Central/State Government Departments/ Ministries, Foreign funding agencies, Indian funding agencies, companies for Corporate social responsibility, individuals or any support agencies.
NGO registered through any process/ act can get registered under Income Tax Act, Foreign Currency Regulation Act (FCRA) or any kind of registration with any Government requirement. Every registered NGO are not eligible for the registration under various departments’ registration. The NGO must fulfill the registration process and parameters as required by the concerned department or authority. But the basic registration parameters do not matter that by which act the Voluntary Organisation is registered as NGO.

Just check here the comparison, difference and similarity between Trust, Society and Non Profit Company: Trust, Society and Company.
So now question is that how to register and under which act you have to register NGO? What kind of NGO is suitable to operate and manage? For answer and solution you can discuss with NGO Consultants at NGOsIndia.net