Non-Governmental Organizations (NGOs) play a crucial role in social welfare and development. In India, NGOs can be registered under three legal structures:
- Section 8 Company (under the Companies Act, 2013)
- Society (under the Societies Registration Act, 1860)
- Trust (under the Indian Trusts Act, 1882 or relevant state laws)
This guide provides a detailed legal overview of forming an NGO, including legal provisions, documentation, benefits, capital requirements, and income tax exemptions.
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1. Section 8 Company
A Section 8 Company is a non-profit entity registered under the Companies Act, 2013 that promotes charitable objectives like education, social welfare, art, environment, and research.
Legal Provisions 
- Governed by Section 8 of the Companies Act, 2013
- Regulated by the Ministry of Corporate Affairs (MCA) ️
Benefits
Limited Liability – Members are not personally liable for debts.
No Minimum Capital Requirement – Can be started with any amount.
Better Credibility – More recognized than a Trust or Society.
Eligible for Tax Exemptions – Under Income Tax Act, 1961.
Government Grants & CSR Funding – Eligible for financial support.
Documents Required
Director Identification Number (DIN) of all directors.
Digital Signature Certificate (DSC) of all directors.
PAN & Aadhaar Card of directors.
Registered Office Address Proof (rent agreement or ownership proof).
No-Objection Certificate (NOC) from the property owner.
Memorandum of Association (MoA) & Articles of Association (AoA).
Capital Requirement & Maintenance Charges
No minimum capital required.
Annual Compliance Costs – ₹10,000 to ₹50,000 depending on filings and audit fees.
Financial Statements & Tax Filings required yearly.
2. Society Registration ️
A Society is a group of individuals coming together for charitable, cultural, religious, or social purposes. It is registered under the Societies Registration Act, 1860.
Legal Provisions
- Governed by the Societies Registration Act, 1860
- Requires a minimum of 7 members to form a society
Benefits
No Minimum Capital Requirement
Suitable for Large Memberships
Greater Transparency & Democratic Functioning
Eligible for Government Grants & Foreign Funding (FCRA approval required)
Documents Required
PAN & Aadhaar of Founding Members
Memorandum of Association (MoA) outlining objectives
Rules & Regulations Document
Registered Office Address Proof
No Objection Certificate (NOC) from the Landlord
Declaration Signed by the President of the Society
Annual Maintenance & Compliance
Annual Report Filing with the Registrar.
Proper Accounting & Auditing Required.
Compliance Costs:₹5,000 – ₹20,000 per year.
3. Trust Formation
A Trust is an entity where a settlor transfers property to trustees for the benefit of society. It can be registered as a Private Trust or a Public Charitable Trust.
Legal Provisions
- Indian Trusts Act, 1882 (for Private Trusts)
- Public Trusts Act (State-Specific for Charitable Trusts)
- Requires Minimum Two Trustees (no upper limit)
Benefits
Easy & Cost-Effective Registration
Ideal for Religious, Educational & Welfare Activities
Trust Properties Are Legally Protected
Eligible for 12A & 80G Tax Exemptions
Documents Required
Trust Deed (on Non-Judicial Stamp Paper)
PAN & Aadhaar of Settlor & Trustees
Registered Office Address Proof
NOC from the Property Owner
Photographs of Trustees
Annual Maintenance & Compliance
Financial Statements & Audit Reports Required
Income Tax Returns (ITR) Filing Mandatory
Compliance Costs: ₹5,000 – ₹30,000 per year.
Income Tax Exemptions for NGOs
To enjoy tax benefits, NGOs must obtain the following under the Income Tax Act, 1961:
80G Certificate – Allows donors to claim tax deductions.
12A Registration – Exempts NGO from paying income tax.
FCRA Registration (For foreign contributions) – Required under Foreign Contribution Regulation Act, 2010.
Process for Tax Exemptions
Form 10A – For 12A Registration (via the Income Tax e-filing portal).
Form 10G – For 80G Approval.
Submission of Audited Financials, PAN, and Registration Certificate.
Approval from the Commissioner of Income Tax (Exemptions).
Issuance of 80G & 12A Certificates 
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