NGO registration in India - choose the right structure

NGO registration in India is the legal process of forming a non-profit organisation. India allows three structures: Trust (2+ trustees, under Indian Trusts Act), Society (7+ members, under Societies Registration Act), and Section 8 Company (2+ directors, under Companies Act). Each structure has different requirements, governance, and compliance.

Trust: Created by trust deed, minimum 2 trustees, managed by trustees, high flexibility, moderate compliance. Society: Registered under Societies Act, minimum 7 members, democratic governance with executive committee, moderate compliance. Section 8: Incorporated under Companies Act, minimum 2 directors, highest credibility and transparency, higher compliance (similar to companies).

Choose Trust if you have 2-6 people and want flexibility. Choose Society if you have 7+ members and want democratic governance. Choose Section 8 if you plan to scale, seek large government or international grants, and need maximum credibility. Our experts help you make the right choice based on your specific situation.

12A/12AB registration under the Income Tax Act exempts the NGO from paying income tax on its surplus income (income minus expenses). Without 12A/12AB, the NGO pays 30% tax on surplus, reducing the funds available for programmes. This registration is essential for any NGO receiving donations.

80G registration allows donors to claim tax deductions on donations made to your NGO. Donors can claim 50% or 100% deduction depending on the NGO's category. This significantly increases donations as donors get tax benefits. 80G is one of the most important registrations for fundraising.

FCRA (Foreign Contribution Regulation Act) registration allows an NGO to receive foreign contributions - donations, grants, or other payments from foreign sources, including NRIs and foreign companies. Without FCRA, accepting foreign money is illegal. FCRA requires 3 years of continuous operation and a clean compliance record.

Trust registration: 15-20 days. Society registration: 15-30 days. Section 8 Company incorporation: 20-30 days. 12A/12AB and 80G: 30-60 days each. FCRA: only after 3 years of operation. We recommend getting structure registration + 12A/12AB + 80G done together.

Trust: Trust deed (on stamp paper), Aadhaar of trustees, address proof, passport photos. Society: Memorandum of Society, bye-laws, Aadhaar of all 7+ members, address proof, consent letters. Section 8: MOA/AOA, DIN/DSC of directors, address proof, identity proof. All types also need PAN, bank details, and registered office address proof.

No, NGOs cannot distribute profits to their members, trustees, or directors. Any surplus income must be used for the NGO's stated charitable objects. However, NGOs can generate income through their activities and invest surplus funds for future projects. The key is that profits cannot be distributed to insiders.

NGOs must hold an AGM annually, file annual returns with the Registrar of Societies / MCA / Charity Commissioner, file income tax returns (ITR-7), maintain audited accounts, comply with 12A/12AB requirements, and if registered under FCRA, file annual FCRA returns. Our Premium package includes all compliance support.

Yes, a society or trust can convert to a Section 8 Company. The conversion process involves: obtaining a special resolution from the governing body, approval from relevant authorities (Registrar of Societies / Charity Commissioner), drafting MOA/AOA for Section 8, filing SPICe+ with MCA, and transferring assets and liabilities. The converted entity retains its original registration history.

A public charitable trust is created for the benefit of the general public or a section of the public and can receive 80G and FCRA registrations. A private trust is created for specific individuals (family members) and cannot receive 80G or FCRA. Private trusts are governed by the Indian Trusts Act but are not considered NGOs for tax purposes.

GST registration is required for NGOs if their annual turnover from taxable supplies exceeds ₹20 lakh (₹10 lakh for special category states). However, certain charitable activities of NGOs (like providing healthcare, education, or religious services) are GST-exempt under the law. NGOs with only exempt activities may not need GST registration even if turnover exceeds the threshold.

Only NGOs with FCRA registration can receive foreign contributions. The FCRA regulates the acceptance and utilisation of foreign funds. NGOs must use FCRA funds only for their stated objects, maintain separate accounts for FCRA funds, and file annual returns. The FCRA license is valid for 5 years and must be renewed.

CSR (Corporate Social Responsibility) under Section 135 of the Companies Act mandates that companies with net worth > ₹500 crore, turnover > ₹1,000 crore, or net profit > ₹5 crore must spend 2% of their average net profits on CSR activities. Registered NGOs are the primary recipients of CSR funding. Companies prefer Section 8 Companies and FCRA-registered NGOs for CSR partnerships due to higher credibility.