Last reviewed: 25 September 2026. Every NGO in India starts with the same fork in the road: register as a public trust, a society, or a Section 8 company. The choice decides who controls the organisation, how much compliance you carry every year, and how credible you look to CSR donors, grant-makers and the FCRA authorities. It is also much harder to change later than founders assume — so it is worth getting right before the first rupee of donation arrives. This guide compares the three structures with Maharashtra-specific registration steps, indicative costs and the new tax registration regime under the Income-tax Act, 2025 that applies from 1 April 2026.
Trust vs society vs Section 8 company: the comparison that matters
| Parameter | Public trust | Society | Section 8 company |
|---|---|---|---|
| Governing law | Maharashtra Public Trusts Act, 1950 (state law; earlier called the Bombay Public Trusts Act) | Societies Registration Act, 1860 (as applicable in Maharashtra) plus MPT Act, 1950 for charitable societies | Section 8, Companies Act, 2013 (central law) |
| Minimum persons | 2 trustees | 7 members | 2 members and 2 directors (private company form) |
| Regulator | Charity Commissioner | Registrar of Societies + Charity Commissioner (Maharashtra) | Registrar of Companies (MCA) |
| Control | Concentrated in trustees; succession as per deed | Elected governing body; members can vote leadership out | Board of directors + members; company-law discipline |
| Annual compliance load | Low to moderate — accounts, audit and Charity Commissioner filings | Moderate — annual list of governing body, plus trust-side filings in Maharashtra | Highest — board meetings, auditor, AOC-4, MGT-7, income-tax and other MCA filings |
| Perception with CSR/institutional donors | Acceptable, common for family philanthropy | Acceptable, common for schools and associations | Generally strongest, due to MCA oversight and transparent filings |
| Best suited for | Founder-driven charity, holding property, religious or family philanthropy | Member-driven bodies — educational societies, welfare associations, clubs | NGOs planning CSR money, large grants, professional staff and scale |
How registration works in Maharashtra
1. Public trust (Maharashtra Public Trusts Act, 1950). Draft a trust deed naming the settlor, at least two trustees, objects and the initial corpus. Execute it on stamp paper — in Maharashtra, stamp duty on a declaration of trust for a charitable purpose is charged on the amount settled or the market value of the property settled (the Maharashtra Stamp Act schedule provides a percentage of that sum for charitable trusts, and a flat amount where no property is disposed of), so a modest cash corpus keeps it small; confirm the exact duty with the Sub-Registrar before execution. Register the deed with the Sub-Registrar, then apply to the Deputy/Assistant Charity Commissioner in Schedule II within three months of creation (nominal court fee applies). On approval, the trust receives its PTR (Public Trust Registration) number. Deed registration typically takes 1–2 weeks; the Charity Commissioner's registration commonly takes several weeks more depending on the office.
2. Society (Societies Registration Act, 1860). Seven founding members sign a Memorandum of Association and Rules & Regulations, filed with the Registrar of Societies with identity proofs, address proof of the registered office and a covering letter. The Maharashtra peculiarity: a society with charitable objects must also register as a public trust with the Charity Commissioner — so you effectively maintain two registrations and report changes (governing body, address, property) to both authorities. Budget roughly a month for the society registration itself.
3. Section 8 company (Companies Act, 2013). The entire incorporation now runs through SPICe+ on the MCA portal — name reservation in Part A, then Part B with the Section 8 licence built in (a separate Form INC-12 is no longer required for fresh incorporations). Attach the memorandum in Form INC-13, professional declaration in INC-14 and applicant declarations in INC-15 within the SPICe+ bundle, along with AGILE-PRO-S for PAN/TAN/EPFO/ESIC. There is no minimum paid-up capital. With clean documents, incorporation typically completes in 10–15 working days. After incorporation: first board meeting and auditor appointment within 30 days, and Form INC-20A (commencement of business) within 180 days — see our Section 8 post-incorporation compliance checklist for the full first-year map.
Indicative cost and timeline (Maharashtra, 2026)
| Item | Public trust | Society | Section 8 company |
|---|---|---|---|
| Government cost drivers | Stamp duty on deed + Sub-Registrar fee + nominal Charity Commissioner court fee | Registrar of Societies fee + Charity Commissioner registration (dual) | Most MCA licence fees exempted; stamp duty on MoA/AoA, DSC and professional certification costs apply |
| Realistic setup timeline | 2–6 weeks (deed fast; PTR number takes longer) | 4–8 weeks including trust-side registration | 2–3 weeks with complete documents |
| Annual recurring effort | Accounts, audit (above thresholds), contribution and change reports | Annual governing-body list + trust-side filings | Full company compliance calendar + tax filings |
Exact fees vary with corpus, property and office; treat the above as planning figures, not quotations.
Tax registration from 1 April 2026: Section 332 (registration, old 12A/12AB) and Section 354 (approval, old 80G(5)); donors claim under Section 133 (old 80G)
The Income-tax Act, 2025 is in force from 1 April 2026 and rewrites the charitable-entity chapter. The structure you register — trust, society or Section 8 company — makes no difference here; all three apply under the same provisions as a Registered Non-Profit Organisation (RNPO):
- Section 332 (replacing 12A/12AB and 10(23C)) — the NGO's own exemption. New entities apply in Form 10A for provisional registration valid 3 years; conversion to regular registration is in Form 10AB, valid 5 years — or 10 years where total income does not exceed ₹5 crore in each of the two preceding tax years. The 10-year period is a feature of registration; check the validity period of your Section 354 approval separately rather than assuming it matches.
- Section 354 (replacing 80G(5)) — approval of the institution, which is what allows donors to claim their deduction under Section 133 (replacing 80G). This is a separate approval with its own renewal cycle; holding Section 332 registration alone does not entitle your donors to any deduction.
- Existing registrations survive. A valid 12A/12AA/12AB/10(23C) registration continues until its expiry date; renew in Form 10AB, ideally six months before expiry. Missing the renewal window risks exit taxation on accreted income — the costliest mistake an established NGO can make. Our 12A and 80G registration guide covers the forms and validity rules in detail.
- The 85% application rule continues: an RNPO must apply at least 85% of its regular income to its objects during the tax year. Example: on receipts of ₹20,00,000, at least ₹17,00,000 must be applied (or validly accumulated) — only then does the exemption hold for the year.
Worked example — what Section 354 approval is worth to your donors. A donor with adjusted gross total income of ₹12,00,000 (old regime) donates ₹1,50,000 to an approved NGO. The qualifying limit is 10% of AGTI = ₹1,20,000, and the deduction is 50% of the qualifying donation = ₹60,000. Without approval under Section 354, the donor gets no deduction under Section 133 — which is why serious fundraisers treat this approval as non-negotiable.
After registration: the credibility stack
- PAN and bank account in the NGO's name — first, before any donation is accepted.
- NGO Darpan (NITI Aayog) ID — mandatory in practice for government grants and FCRA.
- Form CSR-1 with MCA — mandatory before receiving any CSR funds from companies.
- FCRA — only for foreign contribution; normally requires a three-year track record, with a prior-permission route for specific grants in the interim.
- Books, audit and ITR-7 — annual filing is mandatory even at nil tax; sloppy accounts are the single most common reason renewals and grants fail.
NRI and foreign donors. FCRA governs contributions from a foreign source. A donation from an NRI who is an Indian citizen, made from personal savings through normal banking channels (for example from an NRE or NRO account), is generally not treated as foreign contribution; a donation from a foreign citizen, including an OCI cardholder, generally is, and needs FCRA registration or prior permission. See our FCRA prior permission vs registration guide, and for NRI donors’ own tax position, our CA services for NRIs.
Common mistakes we see in NGO set-ups
- Choosing a society for a founder-driven initiative — then losing control of the governing body at the first contested election.
- Registering the entity but delaying Form 10A — donations received before provisional registration can become taxable income.
- Assuming Section 332 registration covers donors — Section 354 approval is separate, and donors ask for it.
- Maharashtra societies ignoring the Charity Commissioner leg — change reports then pile up on the trust side unnoticed.
- Accepting a foreign remittance "just once" without FCRA approval — a violation that can end the NGO.
Frequently asked questions
Which is the easiest and cheapest structure to register — trust, society or Section 8 company?
A public trust is usually the quickest and least expensive: two trustees, a trust deed and registration with the Sub-Registrar and Charity Commissioner. A society needs seven members and, in Maharashtra, dual registration. A Section 8 company takes the most paperwork but offers the strongest governance framework and is generally preferred by institutional donors and CSR contributors.
Do we need both Section 332 registration and Section 354 approval under the Income-tax Act, 2025?
Yes. From 1 April 2026, Section 332 registration (which replaces 12A/12AB) gives the NGO its own income-tax exemption, while Section 354 approval of the institution (which replaces 80G(5)) is what lets donors claim a deduction under Section 133 (old 80G). They are separate applications with separate validity periods — obtain both if you plan to raise donations from Indian donors.
Is our existing 12A/80G registration still valid after the Income-tax Act, 2025 came into force?
Yes. Registrations granted under Sections 12A, 12AA, 12AB or 10(23C) of the 1961 Act continue to remain valid until their stated expiry. From 1 April 2026 the entity is treated as a Registered Non-Profit Organisation (RNPO). On expiry, apply for renewal in Form 10AB — ideally at least six months before the expiry date.
Can a society in Maharashtra skip registration with the Charity Commissioner?
Generally no. A society with charitable objects registered under the Societies Registration Act, 1860 in Maharashtra is also required to register as a public trust under the Maharashtra Public Trusts Act, 1950. This dual registration means change reports and compliance filings go to both the Registrar of Societies and the Charity Commissioner.
Can our new NGO accept foreign donations immediately after registration?
No. Foreign contribution requires FCRA registration, which normally needs three years of existence and a track record of spending on the NGO's objects. A newer NGO expecting a specific foreign grant can apply for FCRA prior permission for that donor and amount instead. Accepting foreign funds without FCRA approval is a serious violation.
Does filing Form CSR-1 guarantee CSR funding?
No. CSR-1 registration only makes the NGO eligible to receive CSR funds from companies. Whether funding actually comes depends on the NGO's track record, Section 332/354 status, governance and alignment with a company's CSR policy. Most CSR donors also expect at least a three-year track record.
We assist with structure selection, drafting, registration in Maharashtra, and Section 332/354 (erstwhile 12A/80G), Darpan, CSR-1 and FCRA registrations — with the compliance calendar set up from day one.
Trust & Society Registration NGO & Section 8 Compliance Talk to usThis article is general information for education, not professional advice on any specific matter. Registration processes, fees and timelines vary by office and change over time; verify current requirements or take professional advice before acting. Figures reflect the law as on 25 September 2026.