Charitable organisations can be formed in multiple ways and may be subject to various acts of legislations. The legal frame work governing the charitable institutions will depend on the form of business the charitable institution intends to undertake. There are three basic legal forms of charitable entities under indian laws that is trusts, societies & section 8 companies.
If a ngo is formed as a public trust. It will be governed by the public trust act as applicable to relevant state. If it is formed as a society, it will be governed by the societies registration act, 1860. The charitable institution can also be formed as a non profit company under section 8 of the companies act, 2013. Apart from the above legislations, provisions of income tax act 1961 and foreign contribution( regulation) act, 2010 are also applicable to charitable institutions.