Society Trust NGO Registration
SRA 1860 / Indian Trusts Act 1882 / IT Act 12A-80G / FCRA
Overview
Society / Trust / NGO RegistrationSRA 1860 / Indian Trusts Act 1882 / 12A / 80G / FCRA
NGOs in India can be registered as: (1) Society under Societies Registration Act 1860 - minimum 7 persons, MoA + Rules, elected governing body, register at registrar-societies.delhi.gov.in (Delhi); (2) Public Charitable Trust under Indian Trusts Act 1882 - minimum 2 trustees, Trust Deed at Sub-Registrar; (3) Section 8 Company under Companies Act 2013. Tax exemptions: S.12A (ITA) - NGO income tax exempt; S.80G (ITA) - donors get 50% deduction; FCRA - to receive foreign contributions (apply to MHA after 3 years, fcraonline.nic.in, mandatory SBI New Delhi account since 2020 amendment). DARPAN portal (ngo.india.gov.in): mandatory for government grants.
An NGO can be registered as a Society (minimum 7 people), Trust (minimum 2 trustees), or Section 8 Company. For tax benefits: 12A certificate makes NGO income tax-free. 80G certificate allows donors to claim tax deduction. For foreign funds: FCRA registration from Ministry of Home Affairs. For government grants: register on DARPAN portal at ngo.india.gov.in.
NGO registration: Society (SRA 1860 - min 7 log), Trust (Indian Trusts Act - min 2 trustee), ya Section 8 Company. 12A: NGO ki aay par tax nahi. 80G: donor ko 50% deduction. FCRA: videshi fund ke liye (MHA, 3 saal ke baad, SBI account). DARPAN: ngo.india.gov.in.
Registration Types
Society Trust Section 8 Company - Which to Choose
Society - SRA 1860
Min 7 Persons - MoA Required
Minimum 7 founding members
Memorandum of Association (MoA)
Rules and Regulations document
Elected governing body
registrar-societies.delhi.gov.in
Public Charitable Trust
Indian Trusts Act 1882 - 2 Trustees
Minimum 2 trustees
Trust Deed registered at Sub-Registrar
Settlor creates for charitable purpose
No governing body elections needed
More stable governance than society
12A and 80G Tax Exemptions
NGO Income Exempt and Donor Deduction
12A: NGO income tax exempt
Apply to CIT (IT Dept) online
80G: donors get 50% tax deduction
Annual return Form 10B mandatory
Apply both together - most beneficial
FCRA - Foreign Contributions
Ministry of Home Affairs
Required to receive foreign funds
Min 3 years existence before applying
MANDATORY SBI New Delhi Main Branch
No sub-granting to other NGOs (2020)
fcraonline.nic.in - apply online
Old Law vs New
Key Changes in Law
| Aspect | Earlier | Current |
|---|---|---|
| Society vs Trust vs Section 8 | Unclear which is better | Society: elected governing body, democratic, annual elections. Trust: trustees control, more stable, no elections. Section 8 Company: limited liability, more regulated, MCA21. |
| 12A and 80G registration | Previously difficult | 2021 reform: 12A and 80G now granted provisionally for 3-5 years. Apply online at income tax portal. More accessible. |
| FCRA tightened 2020 | FCRA once easier | FCRA Amendment 2020: no sub-granting, FCRA account only at SBI New Delhi Main Branch, admin expenses cap 20%. |
| DARPAN portal | Unknown to many NGOs | DARPAN (ngo.india.gov.in): mandatory for NGOs seeking government grants, CSR funds, scheme benefits. |
| Annual compliance | Often neglected | Societies: annual return to Registrar. 12A/80G: Form 10B to IT Dept. FCRA: FC-4 annual return to MHA. |
| Section 8 Company | Less known for NGOs | Companies Act 2013 S.8: charitable purpose company. More compliance burden but limited liability. |
Procedure
Step-by-Step Procedure
1
Choose the Right Structure
(a) Society (SRA 1860): membership-based - educational sports cultural. Democratic governance with elections. (b) Trust (Indian Trusts Act 1882): charitable foundations. No elections, more stable. (c) Section 8 Company: professionally-managed NGOs wanting limited liability.
2
Register Society at Registrar of Societies Delhi
Draft: (a) Memorandum of Association (name, objects, address, founding members); (b) Rules and Regulations (governance, meetings, elections, accounts). Apply at registrar-societies.delhi.gov.in. Submit: application, MoA, Rules, Aadhaar of members, address proof, fee. Certificate issued in 30-60 days.
3
Register Trust at Sub-Registrar
Draft Trust Deed: name, objects (charitable educational religious medical), name of settlor, trustees details, trust property if any, dissolution clause. Register Trust Deed at Sub-Registrar. Stamp duty applicable. Minimum 2 trustees.
4
Apply for 12A and 80G
After registration: apply online at income tax portal. (a) 12A: income tax exemption for NGO income if used for charitable purposes; (b) 80G: donors get 50% tax deduction. Apply to Commissioner of IT (Exemptions). Annual Form 10B with audited accounts.
5
DARPAN Registration - Mandatory for Grants
Register on DARPAN portal (ngo.india.gov.in). Get unique DARPAN ID. DARPAN UID is mandatory for: government grants, CSR funds, scheme benefits, FCRA registration.
6
Apply for FCRA - Foreign Contributions
(a) Registered for at least 3 years; (b) Demonstrated track record; (c) Apply at fcraonline.nic.in; (d) FCRA bank account at SBI New Delhi Main Branch ONLY; (e) MHA scrutiny 90 days; (f) Prior permission for one-time grant before 3 years. Annual FCRA returns mandatory.
Documents
Documents Required
●MoA (Memorandum of Association) draft - for Society
●Rules and Regulations draft - for Society
●Trust Deed draft - for Trust
●Aadhaar of all founding members or trustees
●Address proof of registered office
●Proof of non-profit activities (for 12A/80G)
●Registration certificate (for 12A/80G/FCRA)
●Audited accounts (for 12A/80G renewal and FCRA)
●DARPAN registration details
●FCRA bank account details (SBI New Delhi Main Branch)
Key Points
Key Points
Key Points - Society / Trust / NGO Registration
Society registrationMin 7 persons, MoA + Rules, Registrar of Societies
Trust registrationMin 2 trustees, Trust Deed, Sub-Registrar
12A exemptionNGO income tax exempt. Apply at IT portal.
80G deductionDonors get 50% tax deduction. Apply with 12A.
FCRA registrationMin 3 years. SBI New Delhi account. fcraonline.nic.in.
DARPAN portalMandatory for govt grants. ngo.india.gov.in
Annual complianceAnnual return to Registrar + Form 10B + FC-4 + DARPAN update
2020 FCRA AmendmentNo sub-granting. SBI account only. Admin cap 20%.
Applicable Laws
Relevant Statutes
Societies Registration Act 1860
Governs registration of literary, scientific, and charitable societies. Minimum 7 founding members. MoA + Rules and Regulations. Elected governing body. Annual list of governing body to Registrar. Societies can sue and be sued, hold property, enter contracts. Delhi: registrar-societies.delhi.gov.in.
Indian Trusts Act 1882
Public charitable trusts formed by Trust Deed executed by settlor. Minimum 2 trustees. Trust Deed registered at Sub-Registrar. Objects must be charitable: relief of poverty, education, medical relief, advancement of religion, general public utility. Perpetual - continues even if trustees change.
Income Tax Act 1961 S.12A and S.80G
S.12A: Registration for charitable trusts or institutions - income exempt if used for charitable purposes. Apply online at IT portal. Annual Form 10B with audited accounts. S.80G: Approval for donors to get 50% deduction on donations. 2021 reform: combined application process.
Foreign Contribution Regulation Act 2016 FCRA
Regulates receipt of foreign contributions. Key: (a) 3+ years registered with track record; (b) apply at fcraonline.nic.in; (c) FCRA bank account at SBI New Delhi Main Branch ONLY (2020 amendment); (d) no sub-granting to other NGOs. Annual FCRA return (FC-4) mandatory.
Companies Act 2013 Section 8 Company
S.8: Company with charitable objects. No profit distribution. MCA21 portal. More compliance burden than society or trust. Benefits: limited liability for members, more credibility for corporate donors CSR funding.
CSR - Companies Act S.135
Companies above specified threshold must spend 2% of average net profits on CSR. NGOs with 12A and 80G and DARPAN preferred by CSR companies. Must file Form CSR-1 on MCA21. DARPAN UID mandatory.
Judgments
Landmark Judgments
Trust Created by DeedPublic Charitable Trust CasesVarious HCs | Multiple
Public charitable trust created by written Trust Deed. Charitable purposes: relief of poverty, education, medical relief, general public utility. Trust is perpetual and irrevocable unless Trust Deed provides for dissolution.
View on Indian Kanoon12A Cannot Be Arbitrarily DeniedIT Dept v. NGO CasesVarious HCs and ITAT | Multiple
IT Dept cannot deny 12A if objects are within statutory definition. 12A once granted cannot be arbitrarily revoked without proper notice and hearing.
View on Indian KanoonFCRA Compliance CasesFCRA Cancellation CasesDelhi HC and SC | Multiple
Courts upheld MHA power to cancel FCRA for non-compliance. MHA must give notice and hearing before cancellation.
View on Indian KanoonSociety Property Belongs to SocietySociety Property CasesVarious HCs | Multiple
Property of registered society belongs to society - not individual members. On dissolution: applied for similar charitable purpose, not distributed among members.
View on Indian Kanoon80G Donor Deduction ValidDonor Deduction CasesITAT and HCs | Multiple
Donor 80G deduction valid if NGO had valid 80G approval at time of donation. If 80G subsequently cancelled - previously claimed deductions not affected.
View on Indian KanoonFCRA Amendment 2020FCRA Stricter RulesMHA | 2020
SBI New Delhi Branch mandatory. No sub-granting. Admin expenses cap 20%. Enhanced disclosure. Many NGOs had to switch banks and revise operations.
View on Indian KanoonRecent Developments
Recent Developments
2021
12A and 80G Reform - Online + Provisional
2021: 12A and 80G now granted provisionally. Online application at IT portal. More accessible.
2020
FCRA Amendment - Stricter Rules
Single SBI account, no sub-granting, 20% admin cap. All FCRA NGOs must comply.
Ongoing
DARPAN Portal - Mandatory for Grants
ngo.india.gov.in: mandatory for govt grants, CSR, scheme benefits.
Ongoing
CSR Funding for NGOs
Companies Act S.135 CSR: NGOs with 12A and 80G and DARPAN preferred by corporate CSR donors.
FAQ
Frequently Asked Questions
Society (SRA 1860): membership-based, minimum 7 founding members, MoA + Rules, elected governing body, annual elections, democratic. Trust (Indian Trusts Act 1882): created by settlor, minimum 2 trustees, Trust Deed at Sub-Registrar, no elections, more stable governance.
(1) Draft MoA and Rules and Regulations; (2) Get minimum 7 founding members; (3) Apply at registrar-societies.delhi.gov.in; (4) Submit: application, MoA, Rules, Aadhaar of members, address proof, fee; (5) Certificate issued in 30-60 days.
Section 12A ITA: registration making NGO income exempt from income tax if used for charitable purposes. Without 12A: NGO pays income tax. Apply online at IT portal to Commissioner IT (Exemptions). Annual Form 10B audit return mandatory.
Section 80G ITA: donors can claim 50% deduction on donations to approved NGO. Makes NGO more attractive to corporate and individual donors. Apply together with 12A.
FCRA: mandatory to receive foreign contributions. Requirements: NGO registered for 3+ years, demonstrated track record, apply at fcraonline.nic.in, mandatory FCRA bank account at SBI New Delhi Main Branch only.
DARPAN (NITI Aayog) at ngo.india.gov.in: mandatory for NGOs seeking government grants, scheme benefits, CSR funds, FCRA registration. Get unique DARPAN ID. Keep profile updated.
Society: annual list of governing body to Registrar. 12A and 80G holders: Form 10B annual return with audited accounts to IT Dept. FCRA holders: annual FC-4 return to MHA. DARPAN profile: update annually.
Section 8 Company (Companies Act 2013): company formed for charitable purposes. Members have limited liability. More regulated with higher compliance burden. More credibility for corporate donors.
Yes - NGOs with 12A and 80G and DARPAN registration can receive CSR funds. Must file Form CSR-1 on MCA21. DARPAN UID mandatory. Show track record of charitable activities with audited accounts.
NGO cannot receive foreign contributions. Existing FCRA funds frozen. MHA may direct utilisation. Can apply for re-registration after improving compliance. Grounds: non-filing of returns, sub-granting, using funds for non-approved purposes.
Self-Assessment
Test Your Knowledge
Society / Trust / NGO Registration - 10 Questions
Glossary
Key Legal Terms
Society - SRA 1860
Min 7 persons. MoA + Rules. Elected governing body. Delhi: registrar-societies.delhi.gov.in.
Trust - Indian Trusts Act 1882
Min 2 trustees. Trust Deed at Sub-Registrar. Settlor creates. Perpetual.
Section 8 Company
Companies Act 2013. Charitable purpose. Limited liability. MCA21. Higher compliance.
12A - IT Exemption
NGO income tax exempt. Apply at IT portal. Provisional 3 years.
80G - Donor Deduction
Donors get 50% tax deduction. Apply with 12A. Issue receipts to donors.
FCRA
Foreign Contribution Regulation Act 2016. Min 3 years. SBI New Delhi account only. fcraonline.nic.in.
DARPAN Portal
ngo.india.gov.in. Mandatory for govt grants, CSR, scheme benefits.
Annual Compliance
Annual return to Registrar + Form 10B + FC-4 + DARPAN update. Non-compliance = cancelled.