Non-Governmental Organisations (NGOs) form the backbone of India’s social development sector, working across education, healthcare, environment, women’s empowerment, rural development, and countless other causes. Before an NGO can legally operate, raise funds, or claim tax benefits, it must be registered under one of three legal structures recognised in India: a Society, a Trust, or a Section 8 Company. Each structure has its own governing law, registration process, governance framework, and compliance burden.

Choosing the right structure is a foundational decision that affects everything from day-to-day management to eligibility for tax exemptions and Corporate Social Responsibility (CSR) funding. This article walks through each option, compares them, and then covers the post-registration essentials — PAN, TAN, 12AB and 80G registration, CSR eligibility, and ongoing annual compliance.

The Three Legal Structures

Trust

A Trust is formed when a person (the “author” or “settlor”) transfers property or assets to trustees, who manage them for a charitable or religious purpose. Trusts are primarily governed by the Indian Trusts Act, 1882 (for private trusts) though public charitable trusts are typically governed by state-specific legislation, such as the Bombay Public Trusts Act, 1950 (applicable in Maharashtra and Gujarat), since India has no central law exclusively governing public charitable trusts.

Key features:

1. Minimum of two trustees required (no upper limit, no state-mandated minimum in most states).
2. Governed by a Trust Deed, which defines objectives, trustees, and operating rules.
3. Registered with the local Sub-Registrar/Registrar of Trusts under the Indian Registration Act, 1908 (in states with a Public Trusts Act).
4. Once formed, a Trust is generally harder to amend or dissolve.
5. Best suited for: organisations with a small, stable founding group; charitable/religious endowments; family-driven philanthropic initiatives.

Society

A Society is a membership-based organisation registered under the Societies Registration Act, 1860 (a central act, though several states have enacted their own amended versions, e.g., Punjab, Karnataka, West Bengal).

Key features:

1. Minimum of seven members required (some states require more, e.g., Karnataka requires more for certain societies).
2. Governed by a Memorandum of Association (MOA) and Rules & Regulations.
3. Registered with the Registrar of Societies of the relevant state.
4. Managed by a Governing Body/Managing Committee, typically elected periodically, giving Societies a more democratic character than Trusts.
5. Best suited for: organisations that want member-driven governance, such as sports clubs, professional associations, cultural bodies, and many welfare organisations.

Section 8 Company

A Section 8 Company is registered under Section 8 of the Companies Act, 2013 (the successor to Section 25 of the old Companies Act, 1956), for entities formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection, provided profits (if any) are applied only towards these objects and no dividend is distributed to members.

Key features:

1. Minimum of two members (for a private limited structure) or seven (for a public limited structure); minimum two directors for a private company.
2. Governed by a Memorandum of Association (MOA) and Articles of Association (AOA) in Forms INC-13/INC-31 format, following Companies Act norms.
3. Registered with the Registrar of Companies (RoC) under the Ministry of Corporate Affairs (MCA), via the central SPICe+ portal.
4. Subject to the highest degree of regulatory oversight among the three, including mandatory audits, board meetings, and MCA filings.
5. Best suited for: NGOs seeking a corporate structure with strong credibility, those anticipating large-scale funding (including foreign or corporate/CSR funding), and organisations wanting a professionally governed, perpetual-succession entity.

Registration Procedure

Registering a Trust

1. Draft a Trust Deed specifying the name, registered office, objects, trustees, and rules for trustee appointment/removal.
2. Execute the deed on non-judicial stamp paper (stamp duty varies by state and by property value, if immovable property is settled).
3. Submit the deed along with photographs and ID/address proofs of the settlor and trustees to the local Sub-Registrar office.
4. Pay the registration fee and obtain the registered Trust Deed.

Registering a Society

1. Choose a unique name (not identical to an existing registered entity, and compliant with the Emblems and Names Act).
2. Draft the Memorandum of Association and Rules & Regulations, signed by at least seven founding members.
3. Submit the documents, along with an affidavit, address proof of the registered office, and ID proofs of members, to the state Registrar of Societies.
4. On verification, the Registrar issues a Certificate of Registration.

Registering a Section 8 Company

1. Obtain Digital Signature Certificates (DSC) for proposed directors.
2. Apply for name approval through the MCA’s SPICe+ Part A module.
3. Draft the MOA (Form INC-13) and AOA, along with a declaration of objects and a statement of income/expenditure projections for the next three years.
4. File SPICe+ Part B with the RoC, along with INC-14 (declaration by a professional) and INC-15 (declaration by each subscriber), seeking a licence under Section 8.
5. On approval, the RoC issues the Certificate of Incorporation along with a unique Corporate Identification Number (CIN), and grants the Section 8 licence.
6. PAN and TAN are now auto-generated along with incorporation, as part of the SPICe+ integrated process.

PAN and TAN

Regardless of structure, every NGO needs:

1. PAN (Permanent Account Number): Mandatory for opening a bank account, filing income tax returns, and receiving donations or grants. For Trusts and Societies, PAN must be applied separately (Form 49A) after registration. For Section 8 Companies, PAN is generated automatically during SPICe+ incorporation.
2. TAN (Tax Deduction and Collection Account Number): Required if the NGO deducts tax at source (TDS) — for instance, on salaries, professional fees, or rent payments. TAN is applied for via Form 49B, or is auto-allotted for Section 8 Companies during incorporation.

A dedicated bank account in the NGO’s name (opened using PAN and the registration certificate) is essential, since donation receipts and tax exemption certificates require donations to be received in the organisation’s own account, not an individual’s.

12AB and 80G Registration

Registration under the Societies Act, Trusts Act, or Companies Act only gives an NGO its legal existence — it does not automatically confer income tax exemption. For that, two further registrations under the Income Tax Act, 1961 are essential.

Section 12AB Registration

1. Grants the NGO exemption from income tax on its surplus income, provided it is applied towards charitable objects.
2. Since amendments effective from 1 April 2021, all existing 12A/12AA registrations were required to migrate to the new 12AB regime, and all NGOs must now apply/renew via Form 10A (fresh registration) or Form 10AB (renewal or conversion).
3. Registration is typically granted provisionally for 3 years for new NGOs (or 5 years for renewal of established ones), after which renewal is mandatory before expiry.
4. Applications are processed by the Commissioner of Income Tax (Exemptions) through the income tax e-filing portal.

Section 80G Registration

1. Allows donors to claim a deduction (typically 50% of the donated amount, subject to conditions) on donations made to the NGO, which significantly boosts fundraising ability.
2. Also processed via Form 10A/10AB, and, like 12AB, is granted provisionally and then needs periodic renewal.
3. From FY 2022-23 onwards, NGOs are also required to file Form 10BD (statement of donations received) annually and issue Form 10BE certificates to donors, enabling donors to claim their deduction while filing their own returns.

Note: 12AB and 80G registrations are independent of each other but usually applied for together, since most donors expect both — tax-exempt status for the NGO and a tax deduction for themselves.

CSR Eligibility

Under Section 135 of the Companies Act, 2013, companies meeting specified thresholds (net worth ≥ ₹500 crore, turnover ≥ ₹1,000 crore, or net profit ≥ ₹5 crore in the preceding financial year) must spend at least 2% of average net profits on Corporate Social Responsibility activities.

For an NGO to receive CSR funds, it must meet the eligibility criteria under the Companies (CSR Policy) Rules, 2014 (as amended in 2021):

1. The NGO must be registered as a Trust, Society, or Section 8 Company.
2. It must have a valid 12A/12AB registration (income tax exemption) and, generally, 80G registration.
3. It must have been in existence for at least three years with a track record of undertaking similar activities (a newly formed entity can still receive CSR funds if it is set up by the funding company itself or its group, or in partnership with government-established entities).
4. Most critically, it must register with the MCA on Form CSR-1, obtaining a unique CSR Registration Number, without which it cannot legally receive CSR contributions from any company from FY 2021-22 onwards.

Given these requirements, Section 8 Companies are generally the preferred vehicle for large CSR-funded projects, owing to their transparent governance, public filings, and higher perceived accountability — though well-established Trusts and Societies with complete tax and CSR-1 registrations are equally eligible.

Conclusion

Registering an NGO in India involves more than just picking a name and filing a form — it requires a deliberate choice between three distinct legal frameworks, each with different governance models, compliance obligations, and fundraising implications. Beyond the initial registration, obtaining PAN, TAN, 12AB, and 80G status is essential to operate as a tax-exempt, donor-friendly entity, while CSR-1 registration opens the door to corporate funding. Finally, sustained compliance — income tax filings, audits, MCA filings (for Section 8 Companies), and periodic renewals of 12AB/80G — is what preserves an NGO’s legal standing and public trust over the long term. Given the overlapping timelines and evolving regulatory framework (particularly post-2020 amendments to 12A/80G and CSR rules), most NGOs benefit from professional guidance to stay compliant while focusing on their core mission.