In India, Non-Governmental Organizations (NGOs) play a critical role in addressing social, economic, environmental, and cultural challenges. From rural education and healthcare to women empowerment and disaster relief, NGOs serve as a bridge between government efforts and community needs. If you’re planning to start an NGO or simply want to understand how they operate, it’s important to know the three most common legal structures under which NGOs are registered in India: Trusts, Societies, and Section 8 Companies.
1. Trusts
Definition:
A Trust is a legal arrangement where the owner (Trustee) holds property for the benefit of others (Beneficiaries). In the context of NGOs, charitable trusts are created to provide public service without any profit motive.
Governing Law:
- Indian Trusts Act, 1882 (for private trusts)
- Charitable and Religious Trusts Act, 1920 or respective state laws for public charitable trusts
Key Features:
- Easy to form
- Mainly governed by the trust deed
- Minimum two trustees required
- Suitable for managing immovable property
- No central regulatory body
Ideal For:
Small NGOs focusing on long-term charitable activities like running schools, hospitals, or temples.
2. Societies
Definition:
A Society is an association of people united for a common purpose—usually for promoting literature, science, charity, or cultural activities.
Governing Law:
- Societies Registration Act, 1860
Key Features:
- Requires a minimum of 7 members
- Operates under a Memorandum of Association (MOA) and Rules & Regulations
- More democratic in nature
- Annual filings and regular meetings are mandatory
- Managed by a governing body or executive committee
Ideal For:
Organizations that need a membership-based structure such as art promotion groups, clubs, or social welfare societies.
3. Section 8 Company
Definition:
A Section 8 Company is a non-profit organization established under the Companies Act, 2013, to promote commerce, art, science, education, research, social welfare, religion, charity, and environmental protection.
Governing Law:
- Companies Act, 2013 (Section 8)
Key Features:
- High transparency and credibility
- Can receive foreign donations (FCRA eligible)
- Requires at least 2 directors (for private) or 3 (for public)
- Profits are reinvested in the company’s objectives
- Requires approval from the Registrar of Companies (RoC)
Ideal For:
NGOs looking for a structured, professional setup and planning to work on a national or international level.
Comparison at a Glance
| Feature | Trust | Society | Section 8 Company |
|---|---|---|---|
| Minimum Members | 2 | 7 | 2 (private) / 3 (public) |
| Registration Authority | Local Sub-Registrar | Registrar of Societies | Registrar of Companies |
| Legal Document | Trust Deed | MOA & Rules | MOA & AOA |
| Suitable For | Property Management | Membership Activities | Professional Setup |
| Foreign Funding (FCRA) | Allowed with approval | Allowed with approval | Easier to get approval |
Final Thoughts
Each form of NGO has its own strengths and is suited for different types of operations. Choosing the right structure depends on your mission, resources, scale of operation, and long-term goals. Whether you want to support education in rural villages, promote environmental conservation, or empower women through skill development—registering the right type of NGO is the first step toward lasting social impact.
