🏛️ NGO Registration — TAXAJ
Section 8 · Trust · Society · 12A · 80G · FCRA
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Section 8 vs Trust vs Society
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Compare Section 8 Company, Public Charitable Trust, and Registered Society on 25+ parameters — registration, governance, tax exemptions (12A/80G), FCRA eligibility, CSR receipt, compliance, and dissolution. Answer 5 quick questions for a personalised recommendation.
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🏛️ TAXAJ registers Section 8 Companies, Charitable Trusts, and Societies across India — including 12A, 80G, and FCRA applications. End-to-end NGO setup from ₹8,999.
Section 8 Company vs Trust vs Society — 25 Parameter Comparison
| Parameter | 🏢 Section 8 Company | 📜 Charitable Trust | 👥 Registered Society |
|---|---|---|---|
| 📋 Registration & Governance | |||
| Governing Law | Companies Act 2013 | Indian Trusts Act 1882 (or State Act) | Societies Registration Act 1860 |
| Registration Authority | ROC (Ministry of Corporate Affairs) | Sub-Registrar / Charity Commissioner | Registrar of Societies (State) |
| Minimum Members/Trustees | 2 Directors minimum | 2 Trustees minimum | 7 Members minimum |
| Governing Document | MOA + AOA (MCA) | Trust Deed | Memorandum of Association |
| Registration Time | 15–30 days | 7–15 days | 30–60 days |
| Registration Cost (Govt) | ₹2,000–5,000 | ₹300–2,000 (stamp duty) | ₹500–2,500 |
| 💰 Tax Exemptions & Benefits | |||
| 12A Registration (IT exemption) | ✅ Eligible | ✅ Eligible | ✅ Eligible |
| 80G Registration (Donor deduction) | ✅ Eligible | ✅ Eligible | ✅ Eligible |
| Income Tax Exemption (after 12A) | ✅ 100% exempt | ✅ 100% exempt | ✅ 100% exempt |
| GST Exemption on Charitable Activities | ✅ Yes | ✅ Yes | ✅ Yes |
| 🌐 FCRA & CSR Eligibility | |||
| FCRA (Foreign Contribution) Eligible | ✅ Yes (after 3 years) | ✅ Yes (after 3 years) | ✅ Yes (after 3 years) |
| CSR Funds from Companies (Schedule VII) | ✅ Preferred — highest credibility | ⚠️ Yes but less preferred | ⚠️ Yes but less preferred |
| Government Grants Eligibility | ✅ High credibility | ✅ Yes | ✅ Yes |
| 📊 Compliance & Annual Filings | |||
| Annual MCA Filing (AOC-4 + MGT-7) | ✅ Mandatory | ❌ Not required | ❌ Not required (state varies) |
| Statutory Audit | Mandatory | If gross receipts > ₹2.5L or 12A | If gross receipts > ₹2.5L or 12A |
| Compliance Complexity | High (MCA + IT + GST) | Low-Medium | Medium |
| FCRA Annual Return (FC-4) | ✅ If FCRA registered | ✅ If FCRA registered | ✅ If FCRA registered |
| ⚖️ Control & Dissolution | |||
| Perpetual Succession | ✅ Yes | ❌ Depends on trustees | ⚠️ Yes with caveat |
| Founder Control | Medium (regulated by ROC) | High (trust deed is flexible) | Medium (General Body) |
| Assets on Dissolution | To another Section 8 or government | To another charitable trust | To another society or government |
| Best For | Large NGOs, CSR recipients, corporate funders | Family philanthropy, religious, small NGOs | Membership-based, cultural, sports clubs |
12A · 80G · FCRA · CSR — What Every NGO Founder Must Know
📋 12A Registration — Income Tax Exemption
12A registration under the Income Tax Act gives an NGO complete exemption from paying income tax on its receipts applied for charitable purposes. Without 12A, an NGO's surplus is taxed like company income. Process: File Form 10A online on the Income Tax portal. Required documents: trust deed / MOA, audited accounts for 3 years (for existing NGOs), registration certificate. 12A is granted provisionally and confirmed after 3 years of charitable activity. Once registered, all grants, donations, and corpus are tax-free. TAXAJ files 12A applications for all NGO types.
💰 80G Registration — Donor Tax Benefit
80G registration allows donors to the NGO to claim a 50% or 100% deduction on their income tax for the donation amount. This is a powerful fundraising tool — donors prefer NGOs with 80G as they get a personal tax benefit. Process: File Form 10AB on IT portal (after 12A is granted). Note: 80G does not benefit the NGO — it benefits the donor. CSR donations to 80G-registered NGOs get additional credibility. TAXAJ recommends applying for both 12A and 80G together as they are filed simultaneously now (Form 10A covers both).
🌐 FCRA — Receiving Foreign Funds
FCRA (Foreign Contribution Regulation Act) registration is mandatory for NGOs that want to receive money, articles, or securities from foreign sources. Key rules: (1) NGO must be 3 years old and have spent ₹15 lakh in charitable activities in the preceding 3 years, (2) File Form FC-3A on the MHA online portal, (3) FCRA funds must be deposited in a designated FCRA account at SBI, New Delhi only. Prior Permission (PP) is available for first-time recipients before the 3-year eligibility. FCRA is the most powerful tool for international philanthropy and grant funding.
🏢 CSR Funds — How to Be Eligible
Under Section 135 of Companies Act 2013, companies with net worth ≥₹500Cr, turnover ≥₹1,000Cr, or net profit ≥₹5Cr must spend 2% of average net profits on CSR. They can donate to Section 8 Companies, Trusts, and Societies that are: (1) Registered with MCA under Schedule VII, (2) Have 12A + 80G registrations, (3) Track record of 3 years (or exempted for new entities). Section 8 Companies are preferred by corporates for CSR due to MCA registration (familiar compliance ecosystem). TAXAJ registers NGOs specifically for CSR fund receipt eligibility.
📊 Section 8 vs Trust — Which Has More Credibility?
From a funder and donor perspective: Section 8 Companies have the highest credibility because (1) They are regulated by MCA with strict annual filings, (2) All financial information is publicly available on the MCA portal, (3) Corporate donors and CSR committees are familiar with the MCA ecosystem. Trusts have less public disclosure. However, for small family-run NGOs or religious/cultural organisations, a Trust is simpler and equally effective. For large fundraising (above ₹1 crore/year), TAXAJ recommends Section 8. For small grassroots NGOs, a Trust or Society may be simpler to manage.
⚠️ Common NGO Compliance Mistakes
Most NGO founders make these mistakes: (1) Not filing 12A within the first year — lose tax exemption on early donations, (2) Using FCRA funds for non-FCRA activities — FCRA violation, account frozen, (3) Not maintaining separate FCRA bank account — mandatory since 2020 (SBI New Delhi only), (4) Not filing Form 10B (audit report) with ITR — 12A exemption denied, (5) Not renewing 80G/12A — both now have a 5-year validity and must be renewed. TAXAJ tracks renewal deadlines and manages ongoing compliance for all NGO clients.
NGO Registration India — Frequently Asked Questions
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NGO Registration by TAXAJ
TAXAJ registers Section 8 Companies, Charitable Trusts, and Societies across India — with 12A, 80G, FCRA, and CSR compliance. Full NGO setup from ₹8,999. Offices in Delhi, Bangalore, Goa, and Bihar.