Guide
Section 8 company vs trust vs society
All three can run a non-profit in India. They differ in how they are formed, who controls them and how much compliance they carry. Here is how they compare for an NGO starting in Karnataka.
| Section 8 company | Public charitable trust | Society | |
|---|---|---|---|
| Law | Section 8, Companies Act, 2013 | Created by a trust deed, registered with the Sub-Registrar | Karnataka Societies Registration Act, 1960 |
| Registered with | Ministry of Corporate Affairs (Registrar of Companies), with a Section 8 licence | Sub-Registrar of the area | District Registrar of Societies |
| Minimum people | 2 directors and 2 members (private company) | Usually 2 or more trustees | 7 or more members |
| Control | Board of directors; members can change | Trustees as set out in the deed; harder to change | Governing body elected by members |
| Annual compliance | Highest: audit, MCA filings, board meetings | Lowest: audit and income-tax filings | Medium: audit, annual filings with the Registrar |
| Credibility with large donors and CSR | Highest | Good | Good |
Registrations every structure needs
- Income-tax registration so the organisation's income is exempt (section 332 of the Income-tax Act, 2025, formerly 12A/12AB)
- Donor deduction approval so donors can claim a deduction (section 354, formerly 80G)
- CSR-1 registration with MCA to receive CSR funds from companies; eligibility depends on these registrations and the organisation's track record
- FCRA registration before accepting any foreign contribution
How to choose
- Planning to raise CSR or institutional funding, or want a flexible board: a Section 8 company
- A family or small group running a single cause, wanting low compliance: a trust
- A membership organisation such as an association or club: a society
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General information only, as of October 2026. It is not professional advice; requirements change and depend on your facts.