A Section 8 company offers the strongest governance and credibility, preferred by CSR and foreign donors, but has the most compliance. A trust is simplest to form and control, suited to founder-led charities. A society is member-driven and democratic, suited to associations. All three can get 12A, 80G and FCRA if eligible.
Comparison table
| Factor | Section 8 | Trust | Society |
|---|---|---|---|
| Law | Companies Act, 2013 | Trust deed; state laws | Societies Registration Act |
| Minimum people | 2 directors, 2 members | Settlor and trustees | 7 members |
| Registration | MCA | Sub-Registrar or Charity Commissioner | Registrar of Societies |
| Control | Board and members | Trustees | Elected governing body |
| Compliance | High | Low | Moderate |
Choose a Section 8 company if
- You seek CSR or large institutional funding
- You want transparent, regulated governance
- You plan to operate nationally
Choose a trust if
- Founders want stable control
- The charity is family or founder-led
- You want minimal compliance
Short on time? Leegal can handle Section 8 Company Registration for you, end to end.
Get expert help →Choose a society if
- Many members will participate
- You want democratic elections
- It is an association, club or institution
Frequently asked questions
Which NGO type is best for CSR funds?
All three can receive CSR funds if registered under 12A and 80G and on the MCA CSR-1 register, but Section 8 companies are often preferred by corporates for governance reasons.
Which NGO type is easiest to close?
Trusts and societies can be dissolved as per their deeds and rules, while Section 8 companies follow Companies Act procedures and assets must go to similar organisations.
Can all NGO types get FCRA?
Yes, subject to meeting FCRA eligibility conditions such as years of existence and spending.
Can the founders draw salaries?
Reasonable remuneration for services is generally permitted, but profits cannot be distributed. Trustees' remuneration is restricted in many trust deeds and state laws.
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