When setting up a non-profit in India, you can register it as a Charitable Trust, Society, or a Section 8 Company, each governed by different laws and suited for specific purposes.
A Charitable Trust is governed by the Indian Trusts Act, 1882 or relevant state acts, and requires a minimum of two people (a settlor and a trustee). It’s ideal for family-run or religious charitable work and has minimal compliance requirements.
A Society, regulated by the Societies Registration Act, 1860, needs at least seven members and is perfect for group-led initiatives such as cultural, educational, or welfare associations. It involves moderate compliance like annual filings and meeting records.
On the other hand, A Section 8 Company is registered under the Companies Act, 2013 and needs at least two directors (for a private company) or seven (for a public company). It is highly regulated, with strict governance, mandatory audits, and filings—making it best suited for large-scale professional NGOs or those seeking corporate-style management and CSR funding.
All three types of entities can apply for 12A and 80G registration under the Income Tax Act to avail tax benefits and attract donations. Additionally, they can register under FCRA to receive foreign contributions, subject to government approval. In summary, a Trust is simple and best for limited operations, a Society suits collaborative, local projects, while a Section 8 Company offers a corporate framework for scalable, professional non-profits.
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