Trust, Society & NGO Registration

The structure an NGO chooses decides how it is governed, how easily it can change direction later and what donors and government departments will expect of it. Correcting the wrong choice later usually costs more than choosing carefully at the start. We help founders choose between a trust, a society and a Section 8 company, draft the founding documents and register the organisation, followed by the tax and other registrations it will need.

Trust, society or Section 8 company

Registering a trust

• The trust deed names the settlor, trustees, objects, and how property and income will be managed.
• It is executed on stamp paper of the required value and signed by the settlor and trustees before two witnesses.
• It is registered with the Sub-Registrar (or Charity Commissioner in some states), with identity and address proof of everyone named.
• Trustees serve for life or for the term in the deed, which gives stability but makes replacing a trustee harder.

Registering a society

• At least seven people prepare a memorandum of association and rules covering objects, membership, the managing committee and decision-making.
• The documents are filed with the Registrar of Societies with identity and address proof of all founding members and a list of the first governing body.
• An elected committee runs the society, which suits resident welfare associations, alumni and cultural groups, and educational or research bodies.
• Objects and rules are easier to amend than a trust deed.

Section 8 company

A Section 8 company is a not-for-profit company licensed under the Companies Act. It needs no minimum capital, cannot distribute profits and has more structured governance and filings. It is often preferred by corporate donors and institutional funders. We register these through the MCA's SPICe+ process.

The process

1. Choose the structure based on governance and plans.
2. Choose a name that is not already registered or too similar to an existing organisation.
3. Draft the founding documents, with objects worded to support future tax exemption.
4. Collect identity and address proof for everyone named.
5. File with the Sub-Registrar, Registrar of Societies or MCA.
6. Receive the registration certificate and apply for PAN and a bank account.

After registration

Registration alone gives no tax exemption. Most organisations then apply for:

Common mistakes

• Objects worded too narrowly or vaguely, causing difficulty with 12AB and 80G
• Address proof that doesn't match the registered office
• A name too close to an existing trust or society
• Assuming registration gives tax exemption, and applying for 12AB and 80G only after donors ask

Common questions

Is a trust quicker to register than a society?

Usually, because fewer people are involved and the process is simpler.

Can a trust become a society later?

Not directly. It usually means winding up one and forming the other, so the first choice matters.

Are trusts and societies treated alike for tax?

Yes. Trusts, societies and Section 8 companies are all eligible for 12AB, 80G and FCRA registration if they meet the conditions.