Setting up a not-for-profit entity starts with the choice of vehicle — public charitable trust, society, or Section 8 company — and with an instrument that states objects, powers of the trustees or directors, application of income, and what happens to assets on dissolution. The choice affects registration under state law, bank account opening, and later tax registrations.
Work on formation includes drafting or reviewing the trust deed, memorandum and bye-laws, or Section 8 memorandum and articles; identifying settlor, trustees, or first directors; and compiling the identity and address papers required by the registering authority. Objects are worded so that they remain charitable in character and can support later applications under the Income-tax Act.
After the entity exists on paper, the file moves to PAN, bank account, registered office evidence, and the first resolution appointing signatories. Where the activity will collect public donations, receipt books and a simple books structure are set up from the first collection rather than reconstructed later.
The formation file — instrument, registration certificate, PAN, and first resolutions — is the document set used for 12A/80G and for every subsequent amendment of objects or trustees.