🏆 Non-Profit Structures
Section 8 Company vs
NGO, Trust & Society
Choosing the right non-profit structure determines your tax exemptions, CSR eligibility, FCRA approval, 80G/12A registration, and long-term sustainability.
Section 8 Co.
vs
Trust
vs
Society
Full Comparison
Section 8 vs Trust vs Society — 14 Parameters
| Parameter | Section 8 Company | Public Charitable Trust | Registered Society |
|---|---|---|---|
| Governing Law | Companies Act, 2013 | Indian Trusts Act, 1882 / State Trust laws | Societies Registration Act, 1860 |
| Registration Authority | MCA (Central) | Sub-Registrar / Charity Commissioner (State) | Registrar of Societies (State) |
| Min. Members | 2 directors | 2 trustees (settlor + trustee) | 7 members |
| Governing Document | MOA & AOA | Trust Deed | Memorandum of Association + Rules |
| Regulatory Oversight | High — ROC, MCA, Companies Act | Relatively lower | Moderate — State registrar |
| 12A & 80G Registration | Yes — eligible | Yes — eligible | Yes — eligible |
| FCRA (Foreign Funding) | Eligible — preferred by govt | Eligible | Eligible |
| CSR Funds Eligibility | Easily eligible — companies prefer Sec 8 | Eligible but harder to convince corporates | Eligible but lower credibility |
| Perpetual Succession | Yes — member changes don't affect entity | Depends on trust deed | Yes |
| Transparency / Credibility | Highest — MCA filings are public | Moderate | Moderate |
| Annual Compliance | Higher — ROC annual return + ITR | Simpler — ITR + 12A renewal | Moderate — annual list of members |
| Amendment of Docs | Requires ROC approval | Relatively flexible | Requires registrar approval |
| Registration Cost | ₹15,000 – ₹30,000 | ₹2,000 – ₹8,000 | ₹3,000 – ₹10,000 |
| Ideal For | Larger non-profits, CSR-funded projects, FCRA entities | Family philanthropy, smaller charitable activities | Membership-based associations, clubs, federations |
🏢 Section 8 Company
- Most credible for CSR & large grants
- Central registration — valid all India
- Preferred for FCRA applications
- Higher compliance but higher trust
- Can receive donations + issue 80G receipts
📄 Public Charitable Trust
- Simpler and cheaper to set up
- Ideal for family foundations & personal philanthropy
- State-specific laws vary significantly
- 80G & 12A eligible like any non-profit
- Trust deed is flexible and easy to draft
👥 Registered Society
- Best for membership-driven organizations
- Democratic structure — elected governing body
- Used for clubs, federations, alumni associations
- Annual list of members required
- Eligible for 12A, 80G, and FCRA
Recommendation
Which Non-Profit Structure Should You Choose?
🏢 Section 8 if…
- You plan to apply for CSR funds from corporates
- You want FCRA to receive foreign donations
- Your operations span multiple states
- You need maximum credibility and transparency
📄 Trust if…
- Family philanthropy or personal initiative
- Small-scale charitable activity in one state
- You want low-cost, simple structure
- Control to remain with founding family/trustees
👥 Society if…
- Membership-based organization (alumni, club)
- Democratic governance is important to you
- Literary, scientific, or educational association
- State-level activities with member involvement
Register Your Non-Profit — Guided by Experts
Our CA/CS team handles Section 8 registration, Trust deed drafting, Society registration, 12A/80G applications, and FCRA guidance.