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Process at a Glance
How the Society, Trust & NGO Registration Process Moves
1
Choose the Right Structure
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2
Register Society at Registrar of Societies Delhi
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3
Apply for 12A and 80G — IT Portal
→
4
Register on DARPAN Portal — Mandatory
→
5
Apply for FCRA — Foreign Contributions
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6
Annual Compliance — Mandatory
Overview
Society / Trust / NGO Registration — Framework
NGOs in India can be registered as: (1) Society under the Societies Registration Act, 1860 — minimum 7 persons, Memorandum of Association (MoA) + Rules and Regulations, elected governing body, register at registrar-societies.delhi.gov.in (Delhi); (2) Public Charitable Trust under the Indian Trusts Act, 1882 — minimum 2 trustees, Trust Deed registered at Sub-Registrar, settlor-created, perpetual; (3) Section 8 Company under Companies Act, 2013 — charitable purpose, limited liability, MCA21 portal, higher compliance.
Tax exemptions: S.12A (ITA) — NGO income tax exempt if used for charitable purposes; S.80G (ITA) — donors get 50% deduction; both apply together online (2021 reform: provisional 3-year grant). Foreign funds: FCRA — apply to MHA after 3 years at fcraonline.nic.in; mandatory SBI New Delhi Main Branch account (2020 Amendment); no sub-granting; 20% admin cap. DARPAN portal (ngo.india.gov.in): mandatory for government grants, CSR funding, scheme benefits, and FCRA applications.
Four Key Registration Types
Society — SRA 1860
Minimum 7 founding members. Memorandum of Association (MoA) + Rules and Regulations. Elected governing body — democratic. Best for: educational, cultural, sports, literary organisations. Register at registrar-societies.delhi.gov.in (Delhi). Annual return to Registrar mandatory. Certificate in 30–60 days.
Public Charitable Trust — 1882
Minimum 2 trustees. Trust Deed registered at Sub-Registrar (stamp duty applicable). Created by settlor for charitable purpose. No democratic elections — more stable governance. Perpetual — continues even if trustees change. Objects: education, medical relief, poverty relief, general public utility. Better for foundations with stable long-term purpose.
12A + 80G Tax Exemptions
12A: NGO income exempt from income tax if used for charitable purposes. 80G: donors claim 50% deduction — makes NGO more attractive to donors. Apply together online at IT portal. 2021 reform: provisional registration for 3 years. Annual Form 10B (audit report) mandatory. Without 12A — NGO pays income tax on all income including donations.
FCRA + DARPAN
FCRA: mandatory for foreign contributions — apply to MHA after 3 years at fcraonline.nic.in. 2020 Amendment: FCRA account ONLY at SBI New Delhi Main Branch; no sub-granting; 20% admin cap. DARPAN (ngo.india.gov.in): mandatory for government grants, CSR funds, scheme benefits, FCRA. Annual FC-4 return to MHA.
Key Takeaways
- An NGO can take one of three legal forms: a Society (Societies Registration Act, 1860 — minimum 7 members, MoA + Rules, elected governing body), a Public Charitable Trust (Indian Trusts Act, 1882 — minimum 2 trustees, registered Trust Deed, perpetual), or a Section 8 Company (Companies Act, 2013 — limited liability, higher compliance, strong CSR credibility).
- Tax registration is the “gold standard”: Section 12A/12AB exempts the NGO’s income applied to charity, and Section 80G lets donors claim a 50% deduction. Since the 2021 reform both are applied for online (Form 10A/10AB) and granted provisionally for 3 years, then regularly — the Finance Act 2025 allows up to 10-year validity for small trusts.
- Registration can be granted on the basis of the entity’s objects and proposed activities — it cannot be refused merely because no work has started yet (Ananda Social & Educational Trust, 2020).
- For foreign funds, FCRA, 2010 registration with the MHA is mandatory (apply at fcraonline.nic.in, generally after 3 years). The 2020 Amendment requires the FCRA account only at SBI New Delhi Main Branch, bans sub-granting to other NGOs, and caps administrative expenses at 20% — all upheld in Noel Harper v. Union of India (2022).
- A DARPAN UID (ngo.india.gov.in) is a prerequisite for government grants, central scheme benefits, CSR funding and FCRA. Corporate CSR donors (Companies Act S.135) prefer NGOs holding 12A + 80G + DARPAN + Form CSR-1.
- Charitable character is tested by the dominant-object test under Section 2(15) of the Income Tax Act — incidental commercial activity is allowed only if connected to the charitable object and within the statutory receipts limit (Surat Art Silk, 1979; Ahmedabad Urban Development Authority, 2022); educational bodies must exist solely for education (New Noble Educational Society, 2022).
Key Changes
Recent Changes in Law
| Aspect | Earlier Position | Current Position |
|---|---|---|
| 12A & 80G process | Previously difficult — manual application, often delayed | 2021 Reform: online application at IT portal. Provisional grant for 3-5 years. Combined application for 12A + 80G. More accessible and transparent. |
| FCRA — bank account | FCRA funds could be held in any scheduled bank | 2020 Amendment: FCRA designated account ONLY at SBI New Delhi Main Branch. All NGOs had to switch banks. |
| FCRA — sub-granting | FCRA-registered NGO could transfer funds to another FCRA-registered organisation | 2020 Amendment: sub-granting completely prohibited — even to other FCRA-registered NGOs. Significant impact on umbrella NGOs. |
| FCRA — admin expenses | No specific cap on administrative expenses from FCRA funds | 2020 Amendment: admin expenses capped at 20% of total FCRA receipts. 80% must go to direct charitable purpose. |
| DARPAN portal | Optional — many NGOs unaware of it | Now mandatory for: government grants, central scheme benefits, CSR funding, FCRA registration. DARPAN UID is a prerequisite. ngo.india.gov.in. |
| Section 8 Company | Less known among NGO community | Increasingly preferred for professionally-managed NGOs — limited liability, greater credibility with corporate CSR donors. MCA21 portal registration. |
Procedure
Registration — Step by Step
1
Choose the Right Structure
(a) Society (SRA 1860): membership-based — educational, sports, cultural, social welfare organisations. Democratic governance with elected governing body. Best for community-based organisations. (b) Trust (Indian Trusts Act 1882): charitable foundations — education, medical, poverty relief. No elections — more stable governance. Perpetual. Best for long-term charitable foundations with stable funding. (c) Section 8 Company: professionally-managed NGOs wanting limited liability — greater credibility with corporate CSR donors.
2
Register Society at Registrar of Societies Delhi
Draft: (a) Memorandum of Association (MoA) — name, objects, registered office address, founding members' names and signatures; (b) Rules and Regulations — governance, meetings frequency, elections, accounts, amendment procedure, dissolution clause. Apply at registrar-societies.delhi.gov.in. Submit: application form, MoA, Rules, Aadhaar of all founding members (minimum 7), address proof of registered office, prescribed fee. Certificate issued in 30–60 days. For Trust: draft Trust Deed, register at Sub-Registrar with stamp duty.
3
Apply for 12A and 80G — IT Portal
After registration — apply online at the income tax portal. (a) 12A: income tax exemption for NGO income if used for charitable purposes — annual Form 10B audit report mandatory; (b) 80G: donors get 50% tax deduction — issue receipts with 80G approval number. Apply both together — most beneficial. Commissioner of IT (Exemptions) processes. 2021 reform: provisional grant for 3 years — demonstrate actual charitable activities during the period for final registration.
4
Register on DARPAN Portal — Mandatory
Register on DARPAN portal at ngo.india.gov.in. Get unique DARPAN UID (Unique ID). DARPAN ID is mandatory for: (a) all government grants and central scheme benefits; (b) CSR funds from companies — Form CSR-1 on MCA21 requires DARPAN UID; (c) FCRA registration application. Keep DARPAN profile updated with: audited accounts, activities undertaken, governing body details, bank account information.
5
Apply for FCRA — Foreign Contributions
Requirements: (a) Registered for at least 3 years with demonstrated track record; (b) DARPAN ID mandatory; (c) Apply online at fcraonline.nic.in; (d) Open FCRA designated account at SBI New Delhi Main Branch ONLY (2020 Amendment); (e) Submit: registration certificate, PAN, audited accounts (3 years), activity report, governing body details, proposed foreign donor details. MHA scrutiny — approximately 90 days. Prior permission available for one-time grant before 3 years are completed.
6
Annual Compliance — Mandatory
Non-compliance leads to cancellation. Society: (a) annual list of governing body to Registrar of Societies within 14 days of AGM; (b) maintain audited accounts. 12A/80G: annual Form 10B (audit report) to IT Department. FCRA: annual FC-4 return to MHA within 9 months of year end; update DARPAN profile. Section 8 Company: company annual returns on MCA21 + auditor + board meetings. All entities: bank account KYC, PAN active, address updated.
⏱ Typical Processing Times
Indicative. Government processing times may vary.
Society Registration (Delhi)
30–60 days
Registrar of Societies Delhi
12A + 80G (Provisional)
1–3 months
IT portal — CIT Exemptions
FCRA Registration
3–6 months
MHA — fcraonline.nic.in
Important Note
Registration is no longer perpetual. The Finance Act, 2020 replaced the old lifetime Section 12AA with the renewable Section 12AB regime; the Finance Act, 2025 then extended validity to 10 years for small trusts (gross receipts up to ₹5 crore) while others stay at 5 years. Renew on time — provisional registration is valid 3 years and regular registration must be sought within 6 months of commencing activities or before expiry; if registration lapses or is cancelled, the NGO can face “accreted” (exit) tax under Section 115TD on the fair market value of its assets. Also remember 80G is a separate approval from 12A/12AB — a question on whether 12AA registration alone supports 80G (for trusts with religious objects) is currently pending before the Supreme Court.
Documents
Documents Required
Memorandum of Association (MoA) draft — for Society
Rules and Regulations (Bye-laws) draft — for Society
Trust Deed draft (registered at Sub-Registrar) — for Trust
Aadhaar / PAN of all founding members or trustees
Address proof of registered office
Registration certificate + PAN (for 12A/80G/FCRA)
Audited accounts (for 12A/80G renewal and FCRA)
DARPAN registration + FCRA bank account at SBI New Delhi Main Branch
Key Points
Key Points — NGO Registration
🏛 Quick Reference — Society / Trust / NGO
Society — minimum members7 persons — SRA 1860 — registrar-societies.delhi.gov.in
Trust — minimum trustees2 trustees — Indian Trusts Act 1882 — Sub-Registrar
12A — income tax exemptionNGO income tax exempt — apply at IT portal — Form 10B annually
80G — donor deduction50% deduction for donors — apply with 12A
FCRA — minimum existence3 years before applying — fcraonline.nic.in
FCRA — bank account (2020)SBI New Delhi Main Branch ONLY
FCRA — admin cap (2020)20% of FCRA receipts — no sub-granting
DARPAN portalngo.india.gov.in — mandatory for govt grants, CSR, FCRA
Annual complianceAnnual return to Registrar + Form 10B + FC-4 + DARPAN update
CSR funding eligibility12A + 80G + DARPAN UID + Form CSR-1 on MCA21
Applicable Laws
Relevant Statutes
📖 Relevant Section — S.1 (Societies Registration Act, 1860) +
Section 1 — Societies formed by memorandum of association and registration.
Any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with the Registrar of Joint-stock Companies, form themselves into a society under this Act.
Section 20 extends the eligible purposes to include, among others, charitable societies; societies for the promotion of science, literature or the fine arts; for instruction and the diffusion of useful knowledge or political education; and the foundation or maintenance of libraries, reading rooms, public museums and galleries.
Any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with the Registrar of Joint-stock Companies, form themselves into a society under this Act.
Section 20 extends the eligible purposes to include, among others, charitable societies; societies for the promotion of science, literature or the fine arts; for instruction and the diffusion of useful knowledge or political education; and the foundation or maintenance of libraries, reading rooms, public museums and galleries.
— Section 1, Societies Registration Act, 1860 (Act 21 of 1860). In Delhi, the Registrar of Societies, Govt. of NCT of Delhi performs the Registrar's functions. Source: India Code, indiacode.nic.in.
Societies Registration Act, 1860
Governs registration of literary, scientific, and charitable societies. Minimum 7 founding members. MoA + Rules and Regulations. Elected governing body. Annual list of governing body to Registrar. Societies can sue and be sued, hold property, and enter contracts. Delhi: registrar-societies.delhi.gov.in. Certificate issued in 30–60 days.
Delhi Societies Registrar →
Indian Trusts Act, 1882
Public charitable trusts formed by Trust Deed executed by settlor. Minimum 2 trustees. Trust Deed registered at Sub-Registrar with stamp duty. Objects must be charitable: relief of poverty, education, medical relief, advancement of religion, general public utility. Perpetual — continues even if trustees change. More stable governance than Society.
View on IndiaCode →
Income Tax Act, 1961 — Sections 12A & 80G
S.12A: registration for charitable trusts/institutions — income exempt if used for charitable purposes. Apply online at IT portal to CIT (Exemptions). Annual Form 10B audit report. S.80G: approval for donors to claim 50% deduction on donations. 2021 reform: combined online application, provisional grant for 3 years. Without 12A — NGO income fully taxable.
Income Tax Portal →
Foreign Contribution (Regulation) Act, 2010 (FCRA) + 2020 Amendment
Regulates receipt of foreign contributions. S.11: FCRA registration mandatory for foreign funds. 2020 Amendment: (1) FCRA bank account ONLY at SBI New Delhi Main Branch; (2) No sub-granting to other NGOs even if FCRA-registered; (3) Admin expenses capped at 20% of FCRA receipts. Apply at fcraonline.nic.in after 3 years. Annual FC-4 return to MHA mandatory.
FCRA Online Portal →
Companies Act, 2013 — Section 8 & Section 135 (CSR)
S.8: Company with charitable objects — no profit distribution, limited liability for members, MCA21 portal, higher compliance burden but greater credibility with corporate donors. S.135: Companies above specified threshold must spend 2% of average net profits on CSR. NGOs with 12A + 80G + DARPAN UID + Form CSR-1 (MCA21) are preferred by CSR donors.
MCA21 Portal →
Judgments
Landmark Judgments
1
Recent (2022) — Section 2(15) GPU & the Commercial-Activity Limit
ACIT (Exemptions) v. Ahmedabad Urban Development Authority
Supreme Court of India | (2022) 449 ITR 1 | Decided: 19.10.2022 | CJI U.U. Lalit, Justices S. Ravindra Bhat & P.S. Narasimha
A GPU charity may carry on incidental trade, commerce or business only if (a) it is connected with actually achieving the GPU object and (b) receipts from such activity remain within the quantitative limit in the proviso to Section 2(15). The Court explained and harmonised Surat Art Silk in light of the amended proviso — the governing recent authority on charitable purpose.
View on Indian Kanoon →
2
Recent (2022) — Educational Institutions Must Exist 'Solely' for Education
M/s New Noble Educational Society v. Chief CIT
Supreme Court of India | (2022) 448 ITR 594 | Decided: 19.10.2022
To claim exemption under Section 10(23C), an educational institution/society must exist solely for education and not for profit — the looser “predominant object” test no longer suffices. Compliance with approval/registration under applicable State and other laws is also required. Surplus must be ploughed back into the educational object.
View on Indian Kanoon →
3
Recent (2022) — FCRA 2020 Amendments Upheld
Noel Harper v. Union of India
Supreme Court of India | WP(C) No. 566 of 2021 | Decided: 08.04.2022 | Justices A.M. Khanwilkar, Dinesh Maheshwari & C.T. Ravikumar
Upheld the FCRA (Amendment) Act, 2020 — the designated SBI New Delhi “FCRA Account”, the bar on transfer/sub-granting of foreign contribution to other persons, and Aadhaar/identification for office-bearers. There is no fundamental right to receive unregulated foreign contribution; the restrictions are reasonable and in the public interest.
View on Indian Kanoon →
4
Landmark — 12A/12AA Registration on Objects (No Prior Activity Needed)
M/s Ananda Social and Educational Trust v. CIT
Supreme Court of India | (2020) 17 SCC 254 | Decided: 19.02.2020
A newly formed trust or society can be registered under Section 12AA on the basis of its objects and proposed activities; registration cannot be refused merely because no activities have yet commenced. The Commissioner examines whether the objects are genuinely charitable; genuineness of actual activities is tested again only if cancellation is later considered. (Section 12AA has since been replaced by Section 12AB w.e.f. 01.04.2021 — provisional registration for 3 years, then regular for 5 years — but this principle continues to apply.)
View on Indian Kanoon →
5
Landmark — Society Bye-Law May Validly Restrict Membership
Zoroastrian Co-operative Housing Society Ltd. v. District Registrar
Supreme Court of India | (2005) 5 SCC 632 | Decided: 15.04.2005
A society's bye-law restricting membership is not illegal where the governing Act and Rules do not prohibit it. The right to associate under Article 19(1)(c) includes the right to associate only with those voluntarily admitted, and a registered bye-law operates as a contract binding the members — “public policy” cannot be invoked to strike it down.
View on Indian Kanoon →
6
Landmark — Educational Society Existing Solely for Education = Exempt
Aditanar Educational Institution v. Addl. CIT
Supreme Court of India | (1997) 224 ITR 310 | Decided: 05.02.1997
A society (registered under the Societies Registration Act) or trust that runs educational institutions solely for educational purposes and not for profit is an “other educational institution” entitled to exemption. Eligibility is assessed year by year, and an incidental surplus ploughed back into education does not defeat the claim.
View on Indian Kanoon →
7
Landmark — Charitable Purpose & Dominant-Object Test (GPU)
Addl. CIT v. Surat Art Silk Cloth Manufacturers' Association
Supreme Court of India | (1980) 2 SCC 31 | Decided: 19.11.1979 | 5-Judge Bench (Bhagwati, Untwalia, Tulzapurkar, Pathak & Sen JJ)
Interpreting “advancement of any other object of general public utility” under Section 2(15), the Court laid down the dominant/primary object test: a purpose stays charitable if its real object is charitable and not profit-making — mere incidental profit from an activity carried on to advance that object does not destroy its charitable character.
View on Indian Kanoon →
8
Landmark — Meaning of 'Education' under Section 2(15)
Sole Trustee, Loka Shikshana Trust v. CIT
Supreme Court of India | (1976) 1 SCC 254 | Decided: 28.08.1975
“Education” in Section 2(15) means systematic, scholastic instruction and training (formal schooling), not the wide sense of acquiring general knowledge or life experience. A trust whose activity was merely publishing a newspaper was held not to be carrying on “education” as a charitable purpose.
View on Indian Kanoon →
9
Landmark — Charity May Benefit a 'Section' of the Public
Ahmedabad Rana Caste Association v. CIT
Supreme Court of India | (1971) 82 ITR 704 | Decided: 16.09.1971
An object beneficial to a section of the public is an object of general public utility and so charitable — it need not benefit the whole of mankind. The section benefited must, however, be defined by a common quality of a public or impersonal nature (not a body united only by a personal relationship to a single individual).
View on Indian Kanoon →
10
Landmark — Society Members' Right of Association (Art. 19(1)(c))
Damyanti Naranga v. Union of India
Supreme Court of India | (1971) 1 SCC 678 | Decided: 23.02.1971 | Constitution Bench (Sikri CJ, Bhargava, Mitter, Hegde & Jaganmohan Reddy JJ)
The right to form an association under Article 19(1)(c) includes the right to continue the association with the membership chosen by its founders or regulated by its own rules. A statute that forced new members onto a registered society (Hindi Sahitya Sammelan) without the original members' consent was struck down as unconstitutional.
View on Indian Kanoon →
Recent Developments
Recent Developments
2025 — Finance Act / SC
12AB Validity Eased for Small Trusts; 12AA-vs-80G Question Before SC
The Finance Act, 2025 extended 12AB registration validity to 10 years (instead of 5) for small trusts with gross receipts up to ₹5 crore in the preceding two years — reducing the renewal burden. Separately, the Supreme Court (JJ. J.B. Pardiwala & K.V. Viswanathan) has issued notice in CIT (Exemption) v. Sadhumargi Shantkranti Jain on whether 12AA/12AB registration by itself entitles donors to 80G deduction where the trust also has religious objects — one to watch. Trusts should obtain 80G separately and keep records showing charitable (non-sectarian) activity.
2021 — IT Dept
12A and 80G Reform — Online + Provisional
12A and 80G now granted provisionally for 3 years (then regular, 5 years; 10 years for small trusts post-2025). Fully online application at IT portal via Form 10A/10AB. Combined application process. Existing NGOs required to re-register. Annual Form 10B audit report mandatory for continuation.
2020 — Amendment
FCRA 2020 Amendment — Stricter Rules
FCRA account: SBI New Delhi Main Branch ONLY. Sub-granting completely prohibited. Admin expenses capped at 20%. Enhanced disclosure requirements. Constitutional validity upheld by the Supreme Court in Noel Harper v. Union of India (2022). Annual FC-4 return mandatory.
Ongoing — NITI Aayog / MCA
DARPAN + CSR — Mandatory for Grants & Corporate Funding
ngo.india.gov.in: mandatory DARPAN UID for government grants, central scheme benefits, CSR funding, and FCRA registration. Under Companies Act S.135 (CSR), companies spend 2% of net profits on CSR; NGOs with 12A + 80G + DARPAN UID + Form CSR-1 are preferred by corporate donors. NGOs without DARPAN cannot access government funding.
Practical Tip
Choose the structure for how you want to be governed: a Society suits a democratic, members-driven body (education, culture, sports); a Trust suits stable, founder-led long-term giving; a Section 8 Company suits a professionally managed NGO chasing corporate CSR. Draft the MoA/Trust Deed objects carefully in line with Section 2(15) — vague or profit-flavoured objects invite rejection. Then build the stack in order: register the entity → apply 12A + 80G (Form 10A) → get a DARPAN UID → Form CSR-1 for CSR → FCRA only after the eligibility period. Keep audited accounts and an activity report ready, file annual returns (Form 10B; FC-4 for FCRA; governing-body list for societies), and diarise the 12AB renewal so the registration never lapses.
FAQ
Frequently Asked Questions
How to register a Society in Delhi?
(1) Draft MoA and Rules and Regulations; (2) Get minimum 7 founding members; (3) Apply at registrar-societies.delhi.gov.in; (4) Submit: application, MoA, Rules, Aadhaar of all members, address proof of registered office, prescribed fee; (5) Certificate issued in 30–60 days. MoA must state: name, objects, registered office address, founding members. Rules must state: governance, meetings, elections, accounts, dissolution procedure.
What is 12A and why does an NGO need it?
Section 12A ITA: registration making NGO income exempt from income tax if used for charitable purposes. Without 12A — NGO pays income tax on all income including donations. Apply online at IT portal to Commissioner IT (Exemptions). 2021 reform: provisional grant for 3 years. Annual Form 10B audit report mandatory for continuation of exemption.
What is 80G and what benefit does it give to donors?
Section 80G ITA: donors can claim 50% deduction on donations to approved NGOs. Makes the NGO more attractive to corporate and individual donors — donors effectively get back 50% of their donation as tax savings. Apply together with 12A. The NGO must issue proper receipts with the 80G approval number for donors to claim the deduction.
What is FCRA and when does an NGO need it?
FCRA (Foreign Contribution Regulation Act): mandatory to receive any foreign contribution. Requirements: (a) NGO registered for at least 3 years; (b) demonstrated track record; (c) apply at fcraonline.nic.in; (d) mandatory FCRA bank account ONLY at SBI New Delhi Main Branch (2020 Amendment); (e) no sub-granting; (f) admin expenses cap 20%. Annual FC-4 return to MHA mandatory.
What is DARPAN and why is it important?
DARPAN (NITI Aayog) at ngo.india.gov.in: registration mandatory for NGOs seeking government grants, central scheme benefits, CSR funds, and FCRA registration. Get unique DARPAN UID. Without DARPAN ID — NGO cannot access government funding or CSR. Keep profile updated annually with audited accounts and activities.
What is the annual compliance for an NGO?
Society: annual list of governing body to Registrar of Societies within 14 days of AGM; maintain audited accounts. 12A/80G: annual Form 10B (audit report) to IT Department. FCRA: annual FC-4 return to MHA within 9 months of financial year end; update DARPAN profile. Section 8 Company: MCA21 annual returns + auditor + board meetings. Non-compliance leads to cancellation of registration and loss of tax exemptions.
What changed in FCRA after the 2020 Amendment?
FCRA 2020 Amendment: (1) FCRA bank account ONLY at SBI New Delhi Main Branch — all NGOs had to switch banks; (2) Sub-granting completely prohibited — even to other FCRA-registered NGOs; (3) Admin expenses capped at 20% of FCRA receipts; (4) Enhanced financial disclosure requirements. Annual FC-4 return to MHA is mandatory for all FCRA-registered NGOs.
What is a Section 8 Company?
Section 8 of the Companies Act, 2013: company formed for charitable purposes — no profit distribution, limited liability for members. Registered on MCA21 portal. More compliance burden than Society or Trust (company annual filings, auditors, board meetings). Greater credibility with corporate CSR donors who prefer limited liability entities. Good for professionally-managed NGOs with substantial funding.
Can an NGO receive CSR funds from companies?
Yes — NGOs with the following can receive CSR funds: 12A registration + 80G registration + DARPAN registration (ngo.india.gov.in) + Form CSR-1 filed on MCA21 portal (gives unique CSR Registration Number). Companies subject to Section 135 Companies Act (2% CSR obligation) prefer NGOs with all these registrations and a demonstrated track record of charitable activities with audited accounts.
What is the difference between Society and Trust?
Society (SRA 1860): minimum 7 persons, membership-based, elected governing body, democratic governance, annual returns to Registrar. Trust (Indian Trusts Act 1882): minimum 2 trustees, created by settlor, no elections — more stable governance, perpetual, Trust Deed at Sub-Registrar. Both can apply for 12A, 80G, FCRA, and DARPAN. Trust is better for long-term charitable foundations. Society is better for community-based organisations with active membership.
Self-Assessment
Test Your Knowledge
🏛 Society / Trust / NGO Registration — 20 Questions
Glossary
Key Legal Terms
Society — SRA 1860
Min 7 persons. MoA + Rules. Elected governing body. Delhi: registrar-societies.delhi.gov.in. Annual return to Registrar. Can sue, hold property, enter contracts.
Trust — Indian Trusts Act 1882
Min 2 trustees. Trust Deed at Sub-Registrar. Settlor creates for charitable purpose. No elections — more stable. Perpetual.
Section 8 Company
Companies Act 2013. Charitable purpose. Limited liability. MCA21. Higher compliance but greater credibility for corporate CSR donors.
12A — IT Exemption
NGO income tax exempt if used for charitable purposes. Apply at IT portal. Provisional 3 years (2021 reform). Annual Form 10B audit report.
80G — Donor Deduction
50% deduction for donors on donations to approved NGO. Apply with 12A. Issue receipts with 80G number. Increases donor attraction.
FCRA 2010 + 2020 Amendment
Foreign Contribution Regulation Act. Min 3 years. SBI New Delhi Main Branch ONLY. No sub-granting. 20% admin cap. fcraonline.nic.in. Annual FC-4 return.
DARPAN Portal
ngo.india.gov.in — NITI Aayog. Mandatory for govt grants, CSR, FCRA. Get DARPAN UID. Update profile annually.
Annual Compliance
Annual return to Registrar + Form 10B + FC-4 + DARPAN update + MCA21 (Section 8). Non-compliance = cancellation of registration.
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This is an informational guide and is reviewed periodically against the official sources cited above. If any provision appears outdated or an inadvertent error is noticed, it may be pointed out using the contact details on this page so that the content can be reviewed and corrected. Readers should verify the current statutory text and case law from authentic sources before relying on it.
