SOCIETY | TRUST | SEC-8 ( NGO)
Complete Guide to Society, Trust, and Section 8 Company (NGO) Registration in India
Introduction
Non-Governmental Organizations (NGOs) play a crucial role in social welfare, education, healthcare, and environmental conservation. In India, NGOs can be registered as Societies, Trusts, or Section 8 Companies, each with unique legal structures, benefits, and compliance requirements.
In this blog, we will explore:
✅ Society Registration – Best for community-driven organizations.
✅ Trust Registration – Ideal for charitable and religious institutions.
✅ Section 8 Company Registration – A corporate structure for NGOs.
We will cover their benefits, eligibility, registration process, and key differences to help you choose the right model for your NGO.
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1. Society Registration in India
A society is a group of people coming together for a common social cause such as education, arts, culture, or public welfare. It is governed by the Societies Registration Act, 1860.
Features of a Society
✔ Requires a minimum of 7 members.
✔ Must be formed for charitable, literary, or scientific purposes.
✔ Governed by a Managing Committee.
Benefits of Registering a Society
✅ Legal Recognition – A registered society gets legal status.
✅ Tax Benefits – Eligible for 12AB & 80G tax exemptions.
✅ Foreign Funding Eligibility – Can apply for FCRA registration.
How to Register a Society?
1️⃣ Choose a Unique Name – The name should not resemble existing organizations.
2️⃣ Prepare Memorandum of Association (MoA) – Includes society objectives and member details.
3️⃣ Draft Rules & Regulations – Defines governance structure and decision-making process.
4️⃣ Submit Application to Registrar of Societies – Includes MoA, rules, ID proofs, and address proof.
5️⃣ Obtain Registration Certificate – After verification, the society is registered.
📌 Example: Many educational NGOs and environmental groups operate as societies.
2. Trust Registration in India
A trust is an entity created to manage property or funds for charitable, religious, or social purposes. It is governed by the Indian Trusts Act, 1882.
Types of Trusts
✔ Private Trust – Formed for the benefit of specific individuals (e.g., family trusts).
✔ Public Trust – Established for charitable purposes (e.g., NGOs, religious trusts).
Benefits of Registering a Trust
✅ Complete Tax Exemption – Eligible for 12AB & 80G under the Income Tax Act.
✅ Legal Protection – The trust’s property is safeguarded from misuse.
✅ Credibility & Fundraising – Attracts donations and CSR funding.
How to Register a Trust?
1️⃣ Create a Trust Deed – Includes objectives, trustee details, and property details.
2️⃣ Select Trustees – Minimum two trustees are required.
3️⃣ Apply for PAN & TAN – Essential for financial transactions.
4️⃣ Register with the Sub-Registrar – Submit Trust Deed, ID proofs, and address proof.
5️⃣ Obtain 12AB & 80G Exemptions – Apply for tax benefits to receive donations.
📌 Example: Temples, orphanages, and charitable hospitals operate as public trusts.
3. Section 8 Company Registration in India
A Section 8 Company is a non-profit company registered under the Companies Act, 2013, dedicated to social welfare, education, or scientific research.
Features of a Section 8 Company
✔ Limited Liability – Directors are not personally liable for company debts.
✔ Corporate Structure – Operates like a private limited company but without profit motive.
✔ Minimum Two Directors Required – No maximum limit.
Benefits of a Section 8 Company
✅ Government Recognition – More credibility than societies and trusts.
✅ Foreign Funding & CSR Eligibility – Eligible for FCRA & 80G/12AB registrations.
✅ No Minimum Capital Requirement – Unlike private companies, Section 8 companies don’t require large capital investments.
How to Register a Section 8 Company?
1️⃣ Obtain Digital Signature Certificate (DSC) – Required for filing applications.
2️⃣ Apply for Director Identification Number (DIN) – Needed for company directors.
3️⃣ Choose a Unique Name – Apply for name approval via SPICe+ Form.
4️⃣ Draft MoA & AoA – Defines the company’s objectives and governance structure.
5️⃣ Apply for Incorporation – Submit SPICe+ Form, PAN, and business address proof to the Ministry of Corporate Affairs (MCA).
6️⃣ Receive Incorporation Certificate – Once approved, the company is legally registered.
📌 Example: Many education NGOs, scientific research organizations, and foundations operate as Section 8 companies.
Comparison: Society vs Trust vs Section 8 Company
| Feature | Society | Trust | Section 8 Company |
|---|---|---|---|
| Governing Law | Societies Registration Act, 1860 | Indian Trusts Act, 1882 | Companies Act, 2013 |
| Minimum Members | 7+ | 2+ | 2+ |
| Tax Benefits | Eligible for 12AB & 80G | Eligible for 12AB & 80G | Eligible for 12AB & 80G |
| Foreign Funding | FCRA Required | FCRA Required | FCRA Required |
| Legal Structure | Informal | Flexible | Corporate |
| Best For | Social & cultural groups | Charitable & religious work | NGOs needing corporate governance |
Which One Should You Choose?
✔ Choose a Society if you are forming a group-based NGO for education, art, or research.
✔ Choose a Trust if you want to establish a charitable, religious, or healthcare-based organization.
✔ Choose a Section 8 Company if you need a corporate structure with higher credibility.
Conclusion
Registering an NGO as a Society, Trust, or Section 8 Company depends on your objectives and compliance preferences.
✔ Societies are ideal for community-driven initiatives.
✔ Trusts suit charitable and religious organizations.
✔ Section 8 Companies are best for structured NGOs with corporate governance.
At NGO RC Tax Consultancy, we assist in NGO registration, compliance, and tax benefits. Need help? Contact us today! 🚀
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