Section 25 company verses a Society

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vineet (Querist)
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02 August 2010 which type of NGO can be run more profitabily by an individual... although its a non-profit organization... i also want to know its tagging with a profit making company....... which can be most misused.. and how

Rasesh

Rasesh (Expert)
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04 August 2010 In a country where satyams, ipl and cwg are part of routine life, any form of business can be misused.

A Society once formed cannot use its assets for private purposes or dispose off assets without prior approval. So profits in a society are difficult to appropriate (or say mis-appropriate)

A SEc 25 company does not have such limitations and the accounts are shared only with ROC, leaving a large scope for ...

The above two also carry an additional burden of societal responsibility and image related issues.

A profit making company is the best form of business.

vineet

vineet (Querist)
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05 August 2010 Thanks for the reply.. i agree to your point but still, don't you think that a NGO can be used to raise government projects more easily and thus can have a lot of profit on it...

Perhaps, it can also be used to have grants from government, for organizing different events and programme..

Moreover can't it be a part of group of industries..

Rasesh

Rasesh (Expert)
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05 August 2010 Agree. NGO would be easiest to mis-use.

vineet

vineet (Querist)
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06 August 2010 But dear the question remains the same..... which type of NGO can be a better option to go for..either a society or a Section 25 Company

Rasesh

Rasesh (Expert)
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06 August 2010 NGO is a seperate type of entity.

Society and Sec 25 is seperate.

SEc 25 would be better as you get an option to corporatise any time in the future.

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