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Trust or Society or Section 8 Company?


Non Profit Organisation


Now a days, NGO or NPO (Non-Government Organization or Non-Profit Organization) are very actively working with society for society welfare, poor relief, medical treatment funding or crowd funding.

With ease of technology now NGO are working all over world by having their head office in one place. We have many examples in our front like or who are in crowd funding and helping many people for getting treatment of various diseases including COVID-19.

In today era, government is also working with many NGO for distribution of basic necessities to poor relief in number of lakhs people in India.

In India, there are basically three ways of formation of NGO as below :

  1. By formation of Trust
  2. By formation of Society
  3. By Formation of Section 8 License Company


All above three methods are legible methods with different limitations and governed by different laws and regulations.


Trusts are basically two types : 1. Private Trust which is governed by Indian Trust Act, 1882 created for Family, relatives and their authors. It is closed group of people.

2. Public Trust : Which is governed by state specific laws and legislation. It is created for large of public as NGO.


Society is governed by each state society act. Like in Haryana, societies are governed by Haryana Society registration act, 2012.

Societies can be formed for different purpose like

a) Residents Welfare Association

 b) Charitable Societies

c) Co-operative Societies

d) Farmer Producer Organisation.

Section 8 Company

Section 8 company are formed under Company Act, 2013. So Section 8 Companies are governed by Ministry of Corporate Affairs. So it is valid & recognised through all over India. Section 8 Company can be formed for various Non Profit Purpose.



Registration Under Section 8 Company:

Pre requisite to Registration Process:-

  •  Application for name availability

The first step of getting a company incorporated is obtaining the approval of name by filing SPICE+ PART A to Central Registrar Centre (CRC) (Maximum 2 name can be applied for at a time). Application fee shall be Rs. 1000/- per form for reservation of name. (One re submission is allowed if the given names have been rejected by CRC). Approved name is valid for a period of 20 days from the date of approval.


  • Obtain a DSC of the proposed Directors (Forms of registration required to be signed digitally)


  • Once a DSC is received, file Form DIR-3 with the ROC for getting a DIN. Documents needs to be attached for obtaining DSC:


  1. Proof of Identity and,


  1. Proof of Address.


  1. Form INC-12 (Application for License)


The following documents must be attached along with INC-12 Form:


  1. INC-13 (Memorandum of Association as per prescribed format of INC-13)
  2. Draft Articles of Association
  3. INC-15 (Declaration by each Subscriber that draft MOA & AOA are in conformity)
  4. Estimated Statement of Income & Expenditure for next 3 years
  5. List of proposed Promoters and Directors of Company


After issuance of License in INC-16, following Forms are required to be filed.


  1. Form Spice+ (application for the incorporation of the company)


The following documents must be attached along with Spice+ Form:


  1. Memorandum and articles of the company duly signed by all the subscribers
  2. Declaration from each of the subscribers and first directors that they are not guilty of any offense or misfeasance in Form INC-9 & DIR-2 respectively
  3. Declaration in Form INC 14 and Form INC 15 from a Chartered Accountant and each person making the application respectively
  4. Address of correspondence till the registered office is official
  5. Address and Identity proofs of all the subscribers to MOA and first directors of the company


* In Form Spice, e-MOA and e-AOA can’t be used for Section 8 Company. Section 8 companies are mandatorily required to file MOA and AOA as pdf attachments.         

* If the ROC is satisfied with the forms submitted, issues a Certificate of Incorporation along with a unique Company Identification Number (CIN). 


Documents Requirement for the Registration of Section 8 Company

  1. Digital Signature Certificate


  1. Memorandum of Association


  1. Articles of Association


  1. Passport Size Photographs of Authorised Signatory and Directors.


  1. Details of Director (When the Members Are Other Companies/LLPs)


  1. Director Identification Number
  2. Copy of PAN (All Subscribers/Directors)
  3. Proof of Address (All Subscribers/Directors)
  4. Proof of Identity (All Subscribers/Directors)
  5.  Proof of office Address (Sale Deed/Lease Deed/Rent Agreement etc.)
  6. Copy of Utility Bill (Not older than 02 Months)
  7.  NOC of owner if office is taken on rent/lease.
  8. Proposed company E-mail id and Phone No is also mandatory required.



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