Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The three forms
Trust (trustees), society (members + committee), Section 8 company (corporate non-profit).
Which to choose
Section 8 suits larger, grant-funded NGOs; a trust suits a simple, family-run charity.
Matching the form to the NGO's ambitions
The three forms suit different ambitions, and the choice shapes governance, credibility and compliance. A public charitable trust, created by a deed and run by trustees, is the simplest to form and operate — few members, minimal ongoing filings beyond the tax side — which suits a small, family-led or single-purpose charity, though trustees largely control it and changing the structure later is harder. A society, registered under the Societies Registration Act (or a state Act), is a membership body run by an elected managing committee with a memorandum and rules; it brings a more democratic, accountable structure that funders and members often prefer, at the cost of member meetings, elections and filings with the Registrar of Societies. A Section 8 company, registered under the Companies Act as a non-profit, carries the most structure, credibility and transparency — audited accounts, board governance, ROC filings — which large, grant-funded or institutionally-backed NGOs and CSR-implementing bodies often need, but with the heaviest compliance. All three can obtain 12AB and 80G. The practical guide: a trust for a simple charity, a society for a membership-driven cause, a Section 8 company for a large or institutionally-funded organisation. Decide by how formal, fundable and scalable the NGO needs to be. Confirm the current registration requirements for each.