Given the resource crunch, NGOs/CSOs have to think of earning for serving. So as not to get entangled in Tax web, some of them are planning to go for separate body under (not- for-profit) Companies Act-25. They can’t afford to have a separate CEO for the Company which is supposed to spare surplus money earned for running the Charitable NGO. Do the rules permit one CEO heading both the Charitable NGO and the not-for-profit Company. Few of the Governing body members of the NGO could be on the Board of the Company for safety.
If a common CEO is permitted, what precautions should be taken? Can terms like “Trade” be used by such a Company?