Starting an NGO in India begins with a single choice: which of the three legal structures — trust, society, or Section 8 company — fits what you want to do. Once you register under that structure with the appropriate authority, you layer on further registrations depending on your plans: 12A and 80G for tax exemption, an NGO Darpan ID for government grants, Form CSR-1 for corporate social responsibility funds, and FCRA registration if you want to accept money from abroad. Each of those has its own eligibility rules, timelines, and paperwork, and getting the sequence right at the outset saves years of rework.
Pick a Legal Structure First
The structure you choose determines who governs the organization, how many founders you need, which law you answer to, and how much compliance you will carry every year. All three forms are legitimate; they simply suit different situations.
Trust
A public charitable trust is the most common NGO form in India. Note a point that trips up many new founders: the Indian Trusts Act of 1882 governs only private trusts and explicitly excludes public or charitable endowments.1India Code. Indian Trusts Act, 1882 Public charitable trusts are governed by state law instead. Maharashtra and Gujarat operate under the Bombay Public Trusts Act of 1950; other states have their own public trust acts or rely on general legal principles.
You need at least two trustees, a written trust deed, and clearly stated charitable objectives. Trustees manage the trust property and direct its activities according to the deed. A trust suits founders who want a small, stable governing group and a straightforward setup.
Society
A society is formed under the Societies Registration Act of 1860. Seven or more people who come together for a literary, scientific, or charitable purpose can sign a memorandum of association and file it with the Registrar of Societies to create one.2India Code. The Societies Registration Act, 1860 A society is run democratically by a governing body or committee elected by the membership, which fits organizations that want broader participation in decisions.
Section 8 Company
A Section 8 company is formed under the Companies Act of 2013 and is the most formal option. The Central Government issues a licence allowing the entity to register as a limited company without adding “Limited” or “Private Limited” to its name, provided its objectives promote commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or a similar purpose.3India Code. Companies Act 2013 – Section 8 Formation of Companies With Charitable Objects, Etc. All profits must go toward the stated objectives, and the company cannot pay dividends to its members. A private Section 8 company needs at least two directors; a public one needs three.
This structure carries the heaviest compliance load, but it also carries the most credibility with institutional funders and corporate CSR partners. If you expect to grow into that funding, the extra paperwork usually pays for itself.
Documents to Gather Before You File
The paperwork overlaps considerably across the three structures, so you can start collecting most of it before you finalize the form.
A trust needs a trust deed executed on non-judicial stamp paper, naming the trustees, describing the charitable objectives, and setting out how trust property will be managed. A society and a Section 8 company both need a Memorandum of Association (defining objectives) and Articles of Association (setting internal governance rules). For a Section 8 company, the proposed name must include a word such as “Foundation,” “Forum,” “Association,” or “Federation.”
Every trustee, member, or director must provide identity proof, typically a Permanent Account Number (PAN) card and an Aadhaar card.4The National Trust. Guidelines for NGO Registration You also need proof of your registered office: a utility bill no more than two months old, a property tax receipt, or a notarized rent agreement together with a no-objection certificate from the landlord if the premises are rented. Section 8 company applications additionally require an estimated income-and-expenditure statement for the next three years and declarations from the directors and a chartered accountant.
How to Register
Where you file depends on the structure.
A trust is registered by submitting the executed deed to the local Sub-Registrar’s office in states without a specific public trust act, or to the Charity Commissioner’s office in states like Maharashtra and Gujarat that operate under their own public trust legislation. A society files its memorandum and the list of governing body members with the Registrar of Societies in the relevant state.2India Code. The Societies Registration Act, 1860 In both cases, the authority verifies that the stated objectives are lawful and charitable.
A Section 8 company is registered digitally through the Ministry of Corporate Affairs (MCA) portal using the SPICe+ form, which combines name reservation and incorporation into a single filing. The licence application, memorandum, articles, and supporting declarations are all submitted electronically. Government review typically takes 30 to 60 days as authorities verify the founders’ backgrounds and confirm the non-profit objectives.
Once approved, the authority issues a Certificate of Incorporation (for a Section 8 company) or a Registration Certificate (for a trust or society). This is your legal proof of existence and lets you obtain a dedicated PAN and open a bank account in the organization’s name.
Get 12A and 80G for Tax Exemption
Registering as an NGO does not automatically make your income tax-free. You need separate certifications under the Income Tax Act. From April 1, 2026, the new Income Tax Act of 2025 replaces the 1961 Act, though the core framework for charitable exemptions carries forward.5Press Information Bureau. Understanding The Income Tax Act, 2025
Registration under Section 12A ensures that income you apply toward charitable purposes is not taxed. New organizations receive a provisional registration valid for three years. To convert it into a regular registration, you file Form 10AB at least six months before the provisional period expires, or within six months of commencing activities, whichever is earlier. Regular registration then runs for five years and must be renewed at each expiry. Organizations with annual income below ₹5 crore in each of the two preceding tax years may qualify for a 10-year registration period.
An 80G certificate is what lets your donors claim a deduction on their own tax returns. Most 80G-registered NGOs give donors a 50 percent deduction, capped at 10 percent of the donor’s adjusted gross total income.6Income Tax Department. FAQs Related to Section 80G Certain government-designated funds qualify for 100 percent deductions with no qualifying limit, but those are typically national funds rather than individual NGOs. The 80G certification follows a similar provisional-to-regular timeline as 12A and must be renewed independently.
Do both early. Donors who care about tax efficiency check for 80G status before they write a cheque, and without 12A your own surplus becomes taxable income.
Register on Darpan and File CSR-1 to Access Government and Corporate Funds
The NGO Darpan portal, run by NITI Aayog, assigns a unique Darpan ID to registered non-profits. No law strictly mandates it for every NGO, but the ID is practically required to apply for government grants, subsidies, and partnership schemes.7NITI Aayog. NGO Darpan Registration is free and done online through a self-declaration process. NITI Aayog does not issue a physical certificate; the Darpan ID is itself the credential.
Companies above a certain size are legally required to spend a percentage of their profits on social responsibility under Section 135 of the Companies Act. If your NGO wants to receive those funds as an implementing agency, you must file Form CSR-1 on the MCA portal to obtain a unique CSR Registration Number. Eligibility requires 12A and 80G registrations plus an established track record of at least three years undertaking similar activities. That three-year threshold matches the one that governs full FCRA registration, so newer organizations often face a common bottleneck across several funding streams until they build the operational history.
Register Under FCRA to Accept Foreign Donations
Any NGO that wants to receive donations from international sources must comply with the Foreign Contribution (Regulation) Act, 2010 (FCRA). This is one of the more heavily regulated areas of Indian non-profit law.
FCRA offers two routes. Full registration is available to organizations that have been in existence for at least three years and have spent at least ₹10,00,000 (₹10 lakh) on their activities during that period, excluding administrative costs.8Ministry of Home Affairs. Frequently Asked Questions on FCRA Newer organizations can instead apply for “prior permission,” which authorizes receipt of a specific amount from a specific donor for a defined project. Prior permission requires a commitment letter from the foreign donor and a detailed project proposal.
Every FCRA-registered entity must receive foreign contributions only through a designated FCRA Account at a specified branch of the State Bank of India in New Delhi.9India Code. Foreign Contribution (Regulation) Act, 2010 – Section 17 From there, funds can be transferred to another FCRA account at a scheduled bank of your choice for day-to-day use. No domestic funds can be deposited into any FCRA account.
FCRA registration is valid for five years, and you must apply for renewal at least six months before expiry. If no renewal application is filed, the certificate automatically lapses.10Ministry of Home Affairs. Foreign Contribution (Regulation) Act, 2010 – Section 16 Foreign contributions cannot be used for political activities, funding political parties, election-related spending, or any activity that threatens public order, sovereignty, or national security. Violations can lead to suspension of your registration, frozen bank accounts, or criminal prosecution.
Stay Compliant After Registration
Registration is the starting line. Each structure carries ongoing filings, and missing them can trigger penalties or loss of legal status.
A society must file an annual list of the names, addresses, and occupations of its governing body members with the Registrar within 14 days after the annual general meeting.2India Code. The Societies Registration Act, 1860 If your rules do not provide for an AGM, the list is due in January. Societies also file annual income tax returns, maintain audited financial statements, and file GST returns if registered under the Goods and Services Tax.
Public charitable trusts in states with dedicated legislation, such as Maharashtra, submit audited financial statements, income-and-expenditure accounts, and balance sheets to the Charity Commissioner’s office each year. Trusts in states without dedicated legislation still need to maintain proper accounts, file income tax returns, and comply with the terms of their trust deed.
A Section 8 company faces the heaviest compliance burden. Key annual filings include Form AOC-4 (financial statements, due within 30 days of the AGM), Form MGT-7 (annual return, due within 60 days of the AGM), and Form DIR-3 KYC for every director (due by 30 September). The AGM itself must be held within six months of the financial year end, so by 30 September. Late MCA filings attract a penalty of ₹100 per day with no cap, and a late DIR-3 KYC filing costs ₹5,000. Persistent non-compliance can lead the Central Government to revoke the Section 8 licence, forcing the company to add “Limited” to its name and potentially ordering it wound up or amalgamated with another non-profit.3India Code. Companies Act 2013 – Section 8 Formation of Companies With Charitable Objects, Etc.
One Boundary Worth Knowing Upfront
An NGO’s assets cannot be distributed among its members if the organization is ever wound up. On dissolution, remaining assets of a Section 8 company must be transferred to another Section 8 company with similar objectives, subject to conditions the tribunal may impose. A society follows a similar rule: surplus funds and property go to another society, preferably one with similar objects. Public charitable trusts are generally irrevocable. This is a defining feature of the non-profit form across all three structures, and it is worth understanding at the founding stage rather than at the end.