NGO in India — Eligibility, Types & Benefits
An NGO (non-governmental organisation) in India can be set up in three legal forms, each with its own eligibility and benefits. Choosing the right structure affects your registrations, tax exemptions, and ability to receive grants, CSR funds and foreign contributions. This guide explains the types, who is eligible, and the benefits.
Types of NGO in India
- Trust — formed under the Indian Trusts Act / state public trust laws by executing a trust deed. Simple to set up; common for charitable and religious purposes.
- Society — registered under the Societies Registration Act, 1860 by a group of members (commonly seven or more) with a memorandum and rules. Suited to membership-based bodies.
- Section 8 Company — a company registered under the Companies Act 2013 for charitable objects, with no dividend to members. Most credible for grants, CSR and institutional funding. See Section 8 company registration.
Eligibility
Any group with a genuine charitable, educational, religious, scientific or social welfare purpose can form an NGO. A Trust needs a settlor and trustees; a Society needs the minimum members prescribed by the state; a Section 8 company needs directors and a licence from the ROC. Members/founders must meet basic KYC and not be disqualified.
Benefits of registering an NGO
- Tax exemption — registration under Section 12A/12AB exempts the NGO’s income, and Section 80G lets donors claim deductions. See 12A & 80G registration.
- Eligibility for grants & CSR funding — registered NGOs (especially Section 8 companies) can receive government grants and corporate CSR contributions.
- FCRA registration — to receive foreign contributions, an NGO can seek FCRA registration once eligible.
- Legal standing & credibility — a registered entity can own property, open bank accounts and enter contracts in its own name.
Frequently asked questions
Which is the best NGO structure for grants and CSR?
A Section 8 company is generally viewed as the most credible for institutional grants, CSR funding and governance.
What registrations give NGOs tax benefits?
12A/12AB exempts the NGO’s income and 80G gives donors a deduction; both are applied for after formation.
Can an NGO receive foreign donations?
Yes, after obtaining FCRA registration/approval, subject to eligibility and conditions.
Starting an NGO? TAXAJ sets up your Trust, Society or Section 8 company and gets your 12A/80G. Register your NGO with TAXAJ →
Related guides: Section 8 company · 12A & 80G · Society registration
