Side by side
| Section 8 company | Trust | Society | |
|---|---|---|---|
| Law | Companies Act, 2013 | Trust deed under state public trust law, or general trust law where none applies | Societies Registration Act, 1860 or the state's Act |
| Minimum people | 2 directors and 2 members (private) | Usually a settlor and two or more trustees | 7 under the 1860 Act; state Acts vary |
| Registered with | Registrar of Companies (licence from the Central Government) | Sub-registrar, or the charity commissioner where a state law requires | Registrar of Societies |
| Time to register | Longer, through SPICe+ | Shortest | Moderate |
| Control | Board, under company law | Trustees, as the deed says | Elected governing body |
| Annual compliance | Highest: audit, AOC-4, MGT-7, board meetings | Lowest at the central level; state rules may add filings | Annual list of office bearers and returns as the state Act requires |
| Changing the founding document | Formal, with ROC approval | Hard if the deed does not allow it | By members' resolution, as the Act allows |
Which to choose
- Trust: a family or small founding group running a school, hospital or charity, wanting to keep control. See trust registration.
- Society: an association of members, such as a cultural, sports or professional body, where members elect the committee. See NGO registration.
- Section 8 company: larger operations, CSR partnerships, multiple states or foreign grants, where donors expect company-level governance and audit. See Section 8 company registration and what a Section 8 company is.
None of the three can distribute profits to members or trustees; income must be applied to the charitable objects. Converting later is cumbersome, so it pays to pick the right form at the start.
After registration: the same next steps
- 12A and 80G for income tax exemption and donor deductions; see 12A registration and 80G registration.
- CSR-1 to receive CSR funds from companies; see CSR-1 registration.
- NGO Darpan for government grants; see NGO Darpan registration.
- Form 10BD each year to report 80G donations; see Form 10BD filing.
Talk to Regikart
We help you choose the structure, draft the deed, bye-laws or memorandum, register the entity and obtain 12A, 80G and CSR-1. Call or WhatsApp +91 70444 94804.
Frequently asked questions
Which is better for an NGO: trust, society or Section 8 company?
A trust for a small founder-controlled charity, a society for a member-run association, and a Section 8 company for larger operations, CSR and foreign funding where structured governance matters.
How many people are needed to form a society?
Seven or more under the Societies Registration Act, 1860. State Acts set their own minimums.
How many people are needed for a Section 8 company?
A private Section 8 company needs at least two directors and two members.
Can a trust or society get 80G and CSR funds?
Yes. All three structures can obtain 12A and 80G registration and CSR-1, subject to meeting the conditions.
Can the founders of an NGO take profits?
No. A Section 8 company, trust or society must apply its income to its objects and cannot distribute profits.
About the author
Regikart CS Team
Company Secretaries at Regikart. Want to discuss this in the context of your business?
