Registration of Trusts, Societies & Section 8 Companies in India
In India, thousands of individuals and organizations come together every year to serve society through charitable, educational, medical, cultural, and social initiatives. However, for such efforts to gain legal recognition, credibility, and tax benefits, formal registration is essential.
Mundra Legal provides end-to-end professional support for registering Trusts, Societies, and Section 8 Companies anywhere in India. Our experts simplify the complex compliance process, ensure your documentation is flawless, and help you obtain recognition under Indian law — allowing you to focus on your mission, while we handle the legal foundation.
🔍 Understanding NGO Registration in India
An NGO (Non-Governmental Organization) is a non-profit body formed to promote social, charitable, religious, educational, or cultural causes. NGOs play a vital role in supplementing government welfare programs and driving social development.
In India, NGOs can be registered under three main legal frameworks:
Public Charitable Trust
Under the Indian Trusts Act or State Trust Acts
Society
Under the Societies Registration Act, 1860 (as adapted by states)
Section 8 Company
Under the Companies Act, 2013
Each form has its advantages and legal implications. Mundra Legal helps clients choose the best structure based on their objectives, governance needs, and future funding or compliance goals.
🧾 Trust Registration in India
A Trust is a legal arrangement where the author or settlor transfers property or funds to trustees for the benefit of the public or a specific purpose. Trusts are commonly established for activities like education, health, social welfare, or poverty relief.
✅ Legal Basis
Trusts are governed by:
- The Indian Trusts Act, 1882 (for private trusts), and
- The Charitable and Religious Trusts Act or relevant State Public Trusts Acts (for public charitable trusts).
🧩 How Mundra Legal Assists You
Our team ensures your trust registration is handled seamlessly from start to finish:
Trust Deed Drafting
Legally compliant Trust Deed preparation and vetting
Name Selection
Guidance in name selection as per jurisdictional norms
Compliance Clauses
Preparing clauses for charitable purpose, trustee powers, and governance
Registration Support
Coordinating with Sub-Registrar or Charity Commissioner
PAN & TAN
Securing PAN, TAN, and post-registration compliance
Tax Exemptions
12A and 80G certifications assistance
📄 Documents Required
- Draft Trust Deed on non-judicial stamp paper (value varies by state)
- ID and address proof of Settlor and Trustees
- Passport-sized photographs
- Proof of registered office (rent agreement/NOC)
- PAN of Settlor and Trustees
⚖️ Advantages of Registering a Trust
- Legal identity to own assets and open bank accounts
- Eligibility for government grants and CSR funds
- 12A and 80G tax exemptions under the Income Tax Act
- Public credibility and compliance transparency
🏢 Society Registration in India
A Society is a membership-based organization created by at least seven individuals for charitable, literary, cultural, or social purposes. Societies often manage educational institutions, community development programs, or welfare projects.
✅ Legal Basis
Societies are registered under the Societies Registration Act, 1860, adapted by each state with local variations. In Maharashtra, for example, societies are dual-registered under both the Societies Registration Act and the Bombay Public Trusts Act.
🧩 Mundra Legal's Role in Society Registration
We handle the entire process with precision:
MOA Drafting
Memorandum of Association and Rules & Regulations preparation
Legal Compliance
Ensuring compliance with state laws and membership criteria
Filing Assistance
Filing with the Registrar of Societies
Governing Body Setup
Advisory for setting up managing committee
Annual Returns
Post-registration compliance and annual return guidance
📄 Documents Required
- MOA and Rules & Regulations (signed by all founding members)
- ID and address proof of all members
- Proof of registered office (ownership/rental documents)
- Covering letter and affidavit of non-profit motive
⚖️ Benefits of Society Registration
- Legal standing for conducting social and charitable work
- Eligibility for foreign funding (FCRA registration)
- Separate legal entity with perpetual succession
- Lower compliance burden compared to companies
🏛️ Section 8 Company Registration under the Companies Act, 2013
A Section 8 Company (earlier known as Section 25 Company) is a non-profit entity incorporated under the Companies Act, 2013 with charitable objectives such as education, art, science, research, social welfare, sports, or environment protection.
Unlike traditional companies, Section 8 Companies cannot distribute profits among members. All income must be reinvested to promote the organization's objectives.
✅ Legal Process & Requirements
At least three directors and two shareholders are required. Mundra Legal assists you in:
DSC & DIN
Obtaining Digital Signatures and Director Identification Numbers
Name Approval
Checking name availability and filing SPICe+ (INC-32)
MOA & AOA
Drafting MOA and AOA with charitable clauses
Section 8 License
Filing with Regional Director for license
Incorporation
Completing incorporation and post-registration compliance
⚖️ Key Features
- Separate legal entity with limited liability
- Recognized under the Companies Act for high governance standards
- Can receive domestic and foreign donations (after FCRA approval)
- Mandatory audit and annual filing ensure transparency
📄 Common Documents Required
- MOA and AOA (drafted for charitable objectives)
- PAN, Aadhaar, and address proof of all directors/shareholders
- Proof of registered office
- Declaration under INC-14 and INC-15 affirming non-profit intent
📊 Comparison: Trust vs Society vs Section 8 Company
| Aspect | Trust | Society | Section 8 Company |
|---|---|---|---|
| Governing Law | State Trust Act | Societies Registration Act, 1860 | Companies Act, 2013 |
| Minimum Members | 2 | 7 | 2 Shareholders & 3 Directors |
| Legal Control | Trustees | Governing Council | Board of Directors |
| Registration Authority | Sub-Registrar / Charity Commissioner | Registrar of Societies | Registrar of Companies |
| Legal Entity | May not be separate from trustees | Separate legal entity | Separate legal entity |
| Tax Exemption Eligibility | 12A, 80G | 12A, 80G | 12A, 80G |
| Dissolution | Rare | Allowed | Allowed |
| Ideal For | Religious or Charitable Trusts | Educational/Cultural NGOs | Professional Non-Profits/CSR |
💰 Tax Exemptions & Benefits for NGOs
Section 12A
Income Tax Exemption - Registration exempts income from donations or property held for charitable purposes
Section 80G
Donor Tax Benefits - Donors can claim 50% deduction of donated amount from taxable income
Section 35AC
100% Tax Deduction - For approved projects like water supply, education, hospitals, housing
Section 35(1)(ii)/(iii)
Scientific Research - Weighted deduction up to 175% for scientific/social research
Section 10(23A) & 10(23C)
Educational/Medical - Exemption for professional bodies and educational/medical institutions
Section 12A – Income Tax Exemption
Registration under Section 12A exempts income from donations or property held for charitable purposes. Mundra Legal helps prepare and file Form 10A with the Income Tax Department, along with verification and documentation.
Section 80G – Donor Tax Benefits
Once registered under 12A, NGOs can also apply for 80G certification, allowing donors to claim 50% deduction of their donated amount from taxable income. This enhances funding potential and trustworthiness.
🧠 Why Choose Mundra Legal?
Expert Legal Advisors
Specialized in NGO, Trust, and Section 8 compliance
Pan-India Service
Registration in all states and union territories
Transparent Process
No hidden costs, complete documentation support
Full Compliance
12A, 80G, CSR, and FCRA handled seamlessly
Trusted by Professionals
Multiple NGOs, schools, hospitals, and foundations
❓ Frequently Asked Questions (FAQs)
Q1. Which is better: Trust, Society, or Section 8 Company?
It depends on your objectives. Trusts are ideal for religious/charitable causes with simpler management. Societies suit membership-based organizations like educational or cultural groups. Section 8 Companies offer better governance, transparency, and credibility for professional non-profits seeking CSR funding or foreign donations.
Q2. How long does it take to register a Trust/Society/Section 8 Company?
Trust: 7-15 days (varies by state). Society: 15-30 days. Section 8 Company: 20-40 days, depending on RD approval.
Q3. What is the cost of registration?
Costs vary by state and entity type. Trust registration involves stamp duty (varies by state). Society has nominal filing fees. Section 8 Company requires MCA fees plus professional charges. Contact Mundra Legal for a detailed quote.
Q4. Can I get tax exemption under 12A and 80G?
Yes. All three entities (Trust, Society, Section 8 Company) are eligible for 12A and 80G registration under the Income Tax Act. Mundra Legal assists in the entire application process.
Q5. Can NGOs receive foreign funding?
Yes, but they must obtain FCRA (Foreign Contribution Regulation Act) registration from the Ministry of Home Affairs. Mundra Legal provides FCRA registration services for eligible NGOs.
Q6. Is audit mandatory for NGOs?
Section 8 Companies require mandatory audit. Trusts and Societies may need audit if income exceeds specified limits or if seeking 12A/80G. We recommend annual audits for transparency and compliance.
Q7. What is the difference between 12A and 80G?
12A provides tax exemption to the NGO on its income. 80G allows donors to claim tax deductions on their donations. Both can be obtained together.
📞 Get Started with Mundra Legal Today
Forming a charitable organization is an act of vision — but registering it correctly ensures its credibility and sustainability.
Whether you're planning to start a Trust, Society, or Section 8 Company, Mundra Legal is your trusted partner for seamless registration, tax exemption, and ongoing compliance support.
📞 Contact us today for expert guidance and make your charitable vision a legal reality!