MeraFinanceWala
02Articles
03FAQ

Trusted by 10,000+ entrepreneurs across India

Our Services

NGO / Trust

Set up your non-profit, get 80G and 12A approvals, and start making an impact legally.

3 Ways

to Register an NGO

80G

Donor Tax Benefit

12A

Income Tax Exemption

Free

NGO Consultation

What is NGO / Trust?

Starting a non-profit organisation in India — whether to work in education, healthcare, rural development, environment, arts, or any social cause — requires choosing the right legal form and obtaining the necessary registrations to operate legally, receive donations, and provide tax benefits to donors.

India recognises three primary legal forms for non-profit organisations: a Trust (governed by the Indian Trusts Act 1882 or state trust acts), a Society (governed by the Societies Registration Act 1860), and a Section 8 Company (governed by the Companies Act 2013). Each form has distinct governance structures, compliance requirements, and suitability for different types of organisations.

A Trust is the simplest form, established by a Trust Deed and managed by Trustees. It is ideal for family trusts, religious trusts, educational institutions, and charitable organisations wanting minimal governance complexity. A Society is a membership-based organisation governed by an elected managing committee, suitable for cultural, literary, scientific, and charitable purposes. A Section 8 Company is the most formal and credible structure, with the highest governance standards, and is preferred by professionally managed NGOs, CSR-funded organisations, and those seeking foreign contributions.

Beyond the basic registration, most NGOs need three critical approvals to function effectively: registration under Section 12A of the Income Tax Act, which exempts the NGO's income from income tax; registration under Section 80G, which allows donors to claim income tax deduction on contributions made to the NGO (making your NGO more attractive to donors); and FCRA registration (Foreign Contribution Regulation Act), which authorises the organisation to receive foreign donations.

Our NGO team has extensive experience setting up all types of non-profit organisations, obtaining 12A and 80G approvals, handling CSR compliance for corporates implementing CSR through NGOs, and providing ongoing compliance support. We guide you through every step — from selecting the right structure to your first successful grant application.

Services Under NGO / Trust

Explore everything we offer under this category — each service handled by dedicated experts.

S

Section 8 Company Registration

A Section 8 Company (formerly Section 25 Company) is a company incorporated under the Companies Act 2013 for charitable or not-for-profit purposes. Its name need not include "Limited" or "Private Limited." It applies its profits, if any, towards the promotion of its objects and does not distribute dividends to its members. Section 8 Companies have a professional corporate structure with a Board of Directors, annual ROC compliances, and mandatory statutory audit — making them the most credible NGO structure, preferred by CSR donors and international funders.

Best for: Professional NGOs, CSR-implementing organisations, educational institutions, healthcare organisations, and social enterprises with significant donor funding.
T

Trust Registration

A Charitable or Religious Trust is created by a Trust Deed executed on stamp paper. In states with Charity Commissioner offices (Maharashtra, Gujarat, Tamil Nadu, Rajasthan), public trusts must be registered with the office. In other states, registration with the Sub-Registrar's office is sufficient. The Trust Deed specifies the settlor, trustees, beneficiaries, objects, and management rules. Trusts are simpler to set up than Section 8 Companies but have fewer governance requirements, making them suitable for smaller, family-run charitable activities.

Best for: Family trusts, religious institutions, temples and mosques, educational trusts, and charitable organisations preferring a simpler governance structure.
S

Society Registration

A Society is registered under the Societies Registration Act 1860 (or state-specific acts in some states). It requires a Memorandum of Association (not the same as the Companies Act MOA) listing the name, objects, and address, and Rules and Regulations governing the society's management. Societies are managed by a Governing Body or Executive Committee elected by members. Annual returns must be filed with the Registrar of Societies. Societies are popular for cultural organisations, sports clubs, alumni associations, and professional associations.

Best for: Cultural organisations, professional associations, sports clubs, residents' welfare associations, alumni networks, and educational societies.
1

12A Registration (Income Tax Exemption)

Section 12A of the Income Tax Act grants income tax exemption to charitable and religious trusts, societies, and Section 8 Companies on their income applied for charitable purposes. Without 12A registration, the organisation's income (including donations received and grants) is taxable at the applicable rate. The registration is obtained by filing Form 10A on the Income Tax portal. Once granted, the registration is valid for 5 years and must be renewed. Provisional registration is available for new organisations.

Best for: All NGOs, trusts, societies, and Section 8 Companies wanting to exempt their income from income tax.
8

80G Registration (Donor Tax Deduction)

Section 80G of the Income Tax Act allows donors to claim a deduction of 50% or 100% of their donation to approved organisations from their taxable income. Having 80G approval dramatically increases the attractiveness of your NGO to individual and corporate donors — it effectively reduces their donation cost by the tax saved. Applications are filed on the Income Tax portal (Form 10G). 80G approval is typically obtained along with or after 12A registration and is also valid for 5 years.

Best for: All NGOs wanting to attract more donations by offering tax benefits to donors.
F

FCRA Registration (Foreign Donations)

The Foreign Contribution (Regulation) Act 2010 regulates receipt and utilisation of foreign contributions by associations. Any NGO wanting to receive funds from foreign sources (foreign governments, international organisations, or foreign citizens) must obtain FCRA registration from the Ministry of Home Affairs. New organisations can apply for Prior Permission for a specific project after operating for 3 years. Regular FCRA registration requires at least 3 years of operation and demonstrated charitable activities. Registered organisations must file annual FCRA returns.

Best for: NGOs planning to apply for international grants, receiving donations from NRIs or foreign organisations, or implementing foreign-funded development projects.

How It Works

Our step-by-step process ensures a smooth, transparent experience from start to finish.

01

Structure Selection

We discuss your mission, target beneficiaries, funding sources, team structure, and long-term plans to recommend the most appropriate NGO structure — Trust, Society, or Section 8 Company. Each has different governance requirements, costs, and suitability for different types of organisations and funders.

02

Document Drafting

We draft the Trust Deed, Rules & Regulations, or MOA/AOA as applicable, tailored to your specific charitable objects. The objects must be carefully worded to be sufficiently broad for your activities while specific enough to satisfy the tax authorities for 12A/80G purposes.

03

Registration

We handle registration with the appropriate authority — Charity Commissioner (for trusts in applicable states), Sub-Registrar (for trusts elsewhere), Registrar of Societies, or Registrar of Companies (for Section 8). We obtain the registration certificate and all associated documents.

04

12A Application

We file the application for 12A registration (Form 10A) on the Income Tax e-filing portal, attaching the registration documents, objects, and governing instrument. Provisional registration is typically granted within 1 month, valid for 3 years, after which final registration is obtained on submission of activity evidence.

05

80G Application

We file the 80G application (Form 10G) on the Income Tax portal. The process and timeline are similar to 12A. Having both 12A and 80G dramatically enhances your NGO's credibility and fundraising capability.

06

Ongoing Compliance

We provide annual compliance support — filing income tax returns, annual activity and expenditure reports, renewal of 12A/80G registrations after 5 years, FCRA returns (if applicable), ROC filings (for Section 8), and Society annual returns. Proper annual compliance maintains your registration in good standing.

Documents Required

  • PAN and Aadhaar of all founders / trustees / members
  • Address proof of trustees / members
  • Photograph of all trustees / members
  • Address proof of the NGO's registered office
  • NOC from property owner (for registered office)
  • Bank account details for the NGO
  • Details of proposed charitable activities and budget
  • Any existing activity reports or audited accounts (for 12A/80G/FCRA)
  • Foreign funding approval documents (for FCRA applications)

Timeline & Turnaround

Section 8 Company Registration15–20 working days
Trust Registration7–15 working days
Society Registration15–30 working days
12A Provisional Registration1 month from application
80G Registration1–2 months from application
FCRA Prior Permission90 days from application

Why Choose MeraFinanceWala

Impact with Legal Protection

Operate with full legal credibility and protect trustees from personal liability.

Tax-Efficient Giving

80G approval makes your NGO attractive to donors by offering them tax deductions.

CSR Eligible

Section 8 Companies and registered NGOs are eligible to receive CSR funds from corporates.

Foreign Funding Ready

We help you obtain FCRA registration to access international grants and donations.

Complete Compliance

We handle all annual filings so your organisation stays legally active and in good standing.

Credibility & Trust

Proper registration and compliance builds trust with donors, grantors, and beneficiaries.

Ready to Get Started?

Book a free consultation — our expert will call you within 24 hours.

Frequently Asked Questions

What is the difference between a Trust, Society, and Section 8 Company?
A Trust is the simplest structure, governed by a small group of trustees under a Trust Deed. A Society is a membership organisation with an elected governing body, governed by Rules and Regulations. A Section 8 Company has the most formal governance structure — a Board of Directors, mandatory audit, and ROC compliances like any other company. Section 8 is the most credible for large NGOs seeking CSR and international funds; Trusts are best for smaller, family-run charitable activities; Societies suit membership-based organisations.
Can an NGO earn revenue and still maintain its non-profit status?
Yes. An NGO can generate revenue from services, training programs, publications, or commercial activities — as long as the profits are applied towards the charitable objects and not distributed to members. Income tax exemption under Section 12A applies to income applied for charitable purposes. The key is that no part of the income or assets should benefit the founders or trustees personally. Proper accounting and documentation of how funds are applied is essential.
Is CSR funding available for all NGOs?
Companies subject to CSR compliance under the Companies Act (net worth above ₹500 crore, turnover above ₹1,000 crore, or net profit above ₹5 crore) can direct their CSR spending to eligible activities. CSR can be implemented either directly by the company or through registered NGOs, Trusts, Societies, or Section 8 Companies. Eligible entities must be registered on the MCA CSR portal. Having 12A, 80G, and an established track record significantly improves an NGO's chances of receiving CSR funding.
What is the minimum number of trustees required to form a trust?
There is no statutory minimum number of trustees for a private trust under the Indian Trusts Act. However, for a public charitable trust, most state Charity Commissioners require at least two trustees, and practical governance requires at least three to ensure continuity. For a Society, at least 7 members are required under the Societies Registration Act. For a Section 8 Company, at least two directors and two shareholders are required (can be the same individuals).
How long does it take to get 12A and 80G registration?
The Income Tax portal grants provisional 12A and 80G registration (combined in a single application) within approximately 1 month of filing Form 10A/10G. Provisional registration is valid for 3 years. After 3 years of operation, the organisation applies for final registration by submitting evidence of actual charitable activities, annual accounts, and activity reports. Final registration is valid for 5 years, after which it must be renewed.
Can a foreign national be a trustee or director in an Indian NGO?
A foreign national can be a trustee in a Trust or a member in a Society, but there are practical challenges — particularly around FCRA compliance and bank account operation. For Section 8 Companies, a foreign national can be a director if an Indian resident director is also on the board. However, if the NGO wants to receive foreign contributions, FCRA registration requires that the managing body has a majority of Indian nationals. The RBI and FCRA regulations impose various restrictions that must be carefully navigated.
What annual compliances are required for a Section 8 Company?
A Section 8 Company has all the same ROC compliance requirements as a regular Private Limited Company — annual filing of financial statements (AOC-4), annual return (MGT-7), director KYC (DIR-3), board meetings (minimum 2 per year for small Section 8 companies), statutory audit, and income tax return. Additionally, it must file reports with the Income Tax Department under Section 12A, comply with FCRA filing requirements if it receives foreign contributions, and file utilisation certificates with grant-giving agencies. Our NGO compliance package covers all of these.

Related Services