NGO registration in India: choosing between a trust, a society and a Section 8 company
“NGO” is not a legal form in India. You register one of three structures, and then add the tax and funding approvals that let it receive donations, CSR money and grants. The structure you pick decides how easy those later steps are.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP · Published
Quick answer
An NGO in India is registered as a trust, a society or a Section 8 company. A trust is fastest to set up, a society suits member-run bodies with at least seven founders, and a Section 8 company carries the most credibility with CSR donors. Each then needs 12A and 80G for tax benefits.
- Trust: 1 to 2 weeks; society: 3 to 8 weeks
- CSR funding needs CSR-1 registration
- Foreign donations need FCRA
The three structures side by side
| Trust | Society | Section 8 company | |
|---|---|---|---|
| Law | Indian Trusts Act 1882 (private) or state public trust Acts | Societies Registration Act 1860 or state Act | Companies Act 2013, section 8 |
| Minimum founders | A settlor and, in practice, 2 trustees | 7 members | 2 directors and 2 members (private company) |
| Registered with | Sub-registrar; Charity Commissioner in some states | State Registrar of Societies | Registrar of Companies, online through MCA |
| Typical time | 1 to 2 weeks | 3 to 8 weeks | 3 to 5 weeks (licence plus incorporation) |
| Control | Stays with the trustees; new trustees only as the deed allows | Members elect the governing body | Board and shareholders; changes by resolution and MCA filing |
| Ongoing compliance | Lightest | Moderate, state-dependent | Heaviest: board meetings, AGM, ROC filings, statutory audit |
| Credibility with CSR and large donors | Good | Good | Highest, because of MCA oversight and public filings |
| Operates across states | Yes | Yes, though some registrars expect state-level membership | Yes |
All three can get 12A and 80G, receive CSR funds, and apply for FCRA. None can distribute profit to its founders.
Which one should you choose?
- Choose a trust if a family or a small group wants to fund and run a charity, keep control tight, and move fast. Most family foundations and many schools and temples are trusts.
- Choose a society if the organisation is built around members: an association, alumni body, resident welfare association, sports club or research network where members should elect the leadership.
- Choose a Section 8 company if you plan to raise serious CSR or institutional money, work with international donors, or professionalise with a board. The extra compliance buys credibility.
Converting later is possible but painful: a trust cannot simply become a Section 8 company, it has to transfer its assets to a new entity. Choose with the next five years of fundraising in mind.
How each is registered
- Trust: draft and register the deed with the sub-registrar. Full process in our trust registration guide.
- Society: seven members sign the memorandum and rules and file with the Registrar of Societies. See our society registration guide.
- Section 8 company: apply for the licence and incorporation together on the MCA portal through SPICe+. See our Section 8 company guide, or let us register it for you.
After registration: the approvals, in order
| Step | What it gives you | Notes |
|---|---|---|
| 1. PAN and bank account | The legal basics | A Section 8 company gets PAN and TAN at incorporation |
| 2. 12A (now section 332) registration | The NGO’s own income becomes exempt | Apply for provisional registration in Form 104 before starting activities |
| 3. 80G (now section 354) approval | Donors can deduct their donations | Usually applied together with 12A; see our 12A and 80G guide |
| 4. NGO Darpan ID | Unique ID on the NITI Aayog portal | Needed to apply for most central government grants |
| 5. CSR-1 registration | Eligibility to implement CSR projects for companies | Filed on the MCA portal; needs 12A and 80G. Some categories of agency also need a three-year track record in similar work |
| 6. FCRA registration or prior permission | Permission to receive foreign contributions | Registration currently needs about three years of existence and a minimum spend on core activities; a newer NGO can apply for prior permission for a specific donor |
Costs to expect
Government fees are small for all three. The real cost is professional work on the deed, memorandum or articles, and getting the objects right for 12A. Stamp duty on a trust deed and fees for societies vary by state. A Section 8 company pays MCA fees based on its authorised capital, which is usually kept low. FilingBase registers a Section 8 company from ₹4,999; trusts and societies are quoted after we know the state.
Mistakes to avoid at the start
- Vague or commercial objects. “Any activity for public good” or objects that include trading draw objections when you apply for 12A. List specific charitable purposes.
- Founders who can benefit. Clauses that let trustees or members draw salaries without limits, or take assets on dissolution, will block tax exemption.
- Starting activities before applying for 12A. The provisional application is meant to be filed before activities begin, and the regular application clock starts from the day they do.
- Accepting a foreign donation without FCRA. Even a small contribution from an NRI with a foreign passport or a foreign foundation needs FCRA cover. Returning it is often the only remedy.
- Taking cash donations. Donors lose the 80G deduction above ₹2,000 in cash, and large cash receipts attract scrutiny.
- Picking the wrong state. A trust in Maharashtra or Gujarat has extra Charity Commissioner compliance; a society in some states needs members from several districts. Register where you will actually operate.
Frequently asked questions
Which is the best form of NGO in India?
There is no single best. A trust is fastest and simplest to control, a society suits member-run bodies, and a Section 8 company carries the most credibility with CSR and institutional donors but has the heaviest compliance.
How much does it cost to register an NGO?
Government fees are small in every case. Most of the cost is drafting and professional fees, plus state stamp duty for a trust. A Section 8 company through FilingBase starts at ₹4,999.
Can an NGO receive CSR funds straight after registration?
It needs 12A and 80G first, then CSR-1 registration on the MCA portal. Some categories of implementing agency also need a three-year track record in similar activities.
Does an NGO need 12A and 80G?
Not to exist, but without 12A its surplus is taxed, and without 80G its donors cannot claim a deduction. Almost every NGO applies for both.
Can an NGO receive foreign donations?
Only with FCRA registration or prior permission from the Ministry of Home Affairs, through a designated account at SBI’s New Delhi Main Branch.
Not sure which structure fits?
A 20-minute call with a FilingBase CA and lawyer settles it, and we handle registration, 12A, 80G and CSR-1.
Keep reading.
Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Content on this page is reviewed by a chartered accountant or advocate at LexVerge LLP. It is general guidance, not advice on your specific facts.