NGO Registration Consultant in Delhi | Trust, Society & Section 8

Section 8 Company Registration

What is a Section 8 Company?

A Section 8 Company is incorporated under Companies Act 2013 for charitable purposes, education, science, art, social welfare or environment protection. Unlike regular companies, it cannot distribute profits to its members. All income must be used only for stated charitable objectives. It is regulated by Ministry of Corporate Affairs.

Why Choose Section 8 Over Trust or Society?

Section 8 is preferred when founders wants a structured, transparent and credible organisation, specially for those planning to,

• Attract corporate CSR funds
• Apply for international or institutional grants
• Scale operations into a formal institution
• Add or remove members easily

Documents Required

• PAN and Aadhaar of all proposed directors
• Passport size photographs
• Proof of registered office address
• Utility bill or rent agreement of office
• Drafted MOA and AOA with charitable objectives

Registration Process

1. Obtain DSC and DIN for all proposed directors
2. Apply for name reservation through RUN form on MCA portal
3. Apply for licence from Central Government in Form INC-12 with draft MOA and AOA
4. Once licence is granted, file SPICe+ forms for incorporation
5. Receive Certificate of Incorporation with Section 8 licence
6. Apply for PAN, TAN and then 12AA and 80G registrations

Minimum Requirements

• Minimum 2 directors and 2 shareholders
• At least 1 director must be resident of India
• No minimum capital requirement

Charitable Trust Registration

What is a Charitable Trust?

A trust is a legal arrangement where trustees hold and manage funds for a specific charitable purpose, education, medical relief, poverty alleviation or religious activities. Public charitable trusts are registered under state-specific laws. In states like Maharashtra and Gujarat there is a dedicated Public Trust Act. In other states registration happens with local Sub-Registrar.

Documents Required

• Trust Deed, printed on stamp paper of applicable state value
• Identity and address proof of all trustees
• PAN card of settlor and all trustees
• Passport size photographs of trustees
• Address proof of registered office

Minimum Trustees Required

Minimum 2 trustees are needed. Most Income Tax authorities prefer 3 to 5 trustees for 12AA and 80G applications. More trustees also ensures continuity of governance.

Is Trust Better Than Section 8?

For small grassroots NGOs working in rural areas or religious activities, trust is simpler and cheaper. It does not require ROC filings or MCA annual compliances. But for organisations wanting CSR money or institutional funding, Section 8 gives more credibility. Right choice depends on your scale and funding plan.

Society Registration

What is a Society?

A society is a membership-based organisation formed by group of people for a common non-profit purpose, literature, science, sports or charitable relief. It is registered under Societies Registration Act 1860. Unlike a trust which is built around trustees, a society has a governing body, MOA and Rules & Regulations. Decisions are taken collectively by members.

Documents Required

• Memorandum of Association, name, objectives and registered address
• Rules and Regulations of the society
• List of all founding members with signatures
• Identity and address proof of managing committee members
• Affidavit and declaration from president or secretary
• Address proof of registered office

Minimum Members Required

Minimum 7 members are required under Societies Registration Act 1860. Some states have their own requirements. Members elect a managing committee for day to day governance.

12AA Registration, Income Tax Exemption for NGO

What is 12AA Registration?

Section 12AA of Income Tax Act provides income tax exemption to NGOs on their income, provided it is applied towards charitable objectives. Without 12AA, the NGOs income is fully taxable like any regular business entity. Donations, grants, interest income, everything gets taxed. This is why 12AA registration is the first thing to do after NGO formation.

When to Apply?

Apply for 12AA as soon as NGO is registered. Under current rules, all NGOs first receive provisional registration valid for 3 years. After completing minimum 1 year of operations, they must apply for regular registration.

Documents Required for 12AA, Form 10A

• Registration certificate of NGO
• PAN card of the NGO
• MOA and AOA or Trust Deed or Rules & Regulations
• Details of trustees, directors or governing body
• Bank account details and latest bank statement
• Financial statements if NGO is already operational
• Activity report of charitable work done or proposed

80G Registration, Tax Benefit for Donors

What is 80G Registration?

Section 80G of Income Tax Act allows donors to claim deduction on their taxable income for donations made to NGOs holding a valid 80G certificate. Deduction can be 50% or 100% of donated amount depending on type of NGO. For corporate and individual donors, 80G certification is a major deciding factor before making any donation. NGOs without 80G finds it very hard to attract organised donations.

Is 12AA Required Before Applying for 80G?

Yes. 12AA registration is mandatory prerequisite for 80G. Most NGOs applies for both together since documentation required is largely same. We always recommend applying for both simultaneously to save time and effort.

Validity of 12AA and 80G Registration

Keeping track of renewals is critical. A lapsed registration means loss of tax exemption status immediately.

Can Newly Formed NGO Get 80G Before Starting Activities?

Yes. Under current rules, newly registered NGO can apply for provisional 80G even before starting charitable activities. Provisional registration gives 3 years to commence operations and build track record before applying for regular registration.

Structure Comparison at a Glance

Why Work With a CA Firm for NGO Registration?

NGO registration involves multiple layers, choosing right structure, drafting correct objects clause, filing with right authority and securing tax exemptions. A small error in objects clause of your Trust Deed or MOA can result in rejection of 12AA or 80G application later. We have seen this happen with organisations that did initial registration on their own or through unqualified consultants.

We ensure everything, from founding documents to tax exemption applications, is done correctly the first time. This saves months of back-and-forth with government departments and keeps your organisation legally clean from day one.