To start an NGO in India, choose your legal structure (Trust, Society, or Section 8 Company), register it with the appropriate authority, and then secure your PAN, entity bank account, and NGO Darpan ID. Apply for Registered Non-Profit Organization (RNPO) status to unlock tax exemptions and offer tax deductions to your donors. Expect to budget between ₹5,000 and ₹30,000 and allocate 2 to 6 weeks for core registration.
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Who Can Start an NGO in India?
Anyone who meets standard legal criteria can start an NGO in India. There are no educational requirements, background restrictions, or minimum capital mandates.
- Age: Founders, trustees, and directors must be at least 18 years old (the legal age of majority).
- Citizenship: Indian citizens can establish any of the three structures. Foreign nationals can join as members, but FCRA regulations prohibit foreign nationals from holding chief executive roles, and Section 8 Companies generally require at least one resident Indian director.
- Clean Record: Founders must not have been convicted of any offense involving moral turpitude.
Minimum Group Size:
- Trust: Minimum 2 trustees.
- Society: Minimum 7 members.
- Section 8 Company: Minimum 2 directors.
How to Start an NGO – Step-by-Step Guide
Step 1: Choose Your Structure
This is the decision that shapes every cost and compliance step that follows. There is no universally "best" structure — it depends on your team size and funding plans.
| Feature | Trust | Society | Section 8 Company |
| Governing law | Indian Trusts Act, 1882 / state Trust Acts | Societies Registration Act, 1860 | Companies Act, 2013 |
| Minimum members | 2 trustees | 7 members | 2 directors |
| Typical cost | ₹5,000–₹15,000 | ₹8,000–₹20,000 | ₹14,000–₹30,000 |
| Typical timeline | 1–2 weeks | 3–6 weeks | 3–5 weeks |
Section 8 Companies are increasingly the default choice for NGOs planning to work with CSR donors, since corporate teams are more familiar with MCA-regulated structures.
Step 2: Register Your NGO
Draft Your Objects Clause: Define your core mission specifically (e.g., primary education, healthcare access, environmental conservation) rather than using overly broad terms like "general welfare."
Prepare Governing Documents: Draft your Trust Deed (Trust), Memorandum & Rules (Society), or Memorandum and Articles of Association (Section 8 Company).
File with Authorities
- Trust: File at the local Sub-Registrar's office.
- Society: File with the State Registrar of Societies.
- Section 8 Company: Submit via the Ministry of Corporate Affairs (MCA) SPICe+ web portal.
Step 3: Register on NGO Darpan
NGO Darpan (ngodarpan.gov.in) is a free NITI Aayog portal. It is not legally mandatory to exist, but it is a practical prerequisite for FCRA registration, most central government grants, and many CSR partnerships.
You will need your PAN, registration certificate, and Aadhaar/PAN details of at least three office bearers.
Step 4: Apply for RNPO Status (12A and 80G)
Without tax exemption status, your NGO's surplus income is taxable, and donors cannot claim deductions on their contributions.
Under the tax framework, statutory non-profit exemptions sit under Registered Non-Profit Organisation (RNPO) status.
Legal update: Section 12A is now Section 332, and Section 80G is now Section 133(1)(b)(ii), under the Income-tax Act, 2025, effective 1 April 2026. Both approvals sit under one status — Registered Non-Profit Organisation (RNPO). Apply using Form 104 (provisional, valid 3 years) or Form 105 (regular, valid 5–10 years) on the Income Tax e-filing portal.
Step 5: Add the Registrations You Need, When You Need Them
Not every NGO needs these from day one. Add them as your funding sources require.
| Registration | Needed for | When to apply |
| FCRA | Receiving foreign donations | Only after 3 years of active existence |
| CSR-1 | Receiving corporate CSR funds | Once RNPO (12A/80G) status is in place |
| GST registration | Selling goods/services above the threshold | If your NGO has taxable commercial activity |
| State-specific licences | Sector-specific work (schools, hospitals, shelters) | Before starting that specific activity |
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What Are Common Mistakes That Delay Founders
- Vague Object Clauses: Drafting overly broad mission statements that cause rejection during tax exemption or grant reviews.
- Skipping NGO Darpan: Realizing too late that missing a Darpan ID blocks access to government schemes and FCRA approvals.
- Premature FCRA Applications: Applying for FCRA before meeting the statutory 3-year track record requirement.
- Neglecting Post-Registration Approvals: Treating entity incorporation as the end goal rather than securing RNPO status, maintaining books, and filing yearly returns.
- Selecting Solely by Upfront Cost: Choosing a structure purely based on initial setup price while ignoring future CSR or funding goals.
What Compliance Looks Like After You Register
Registration is the start, not the end. Every RNPO files an annual return and, once income crosses the basic exemption limit, an audit report.
- ITR-7 — annual income tax return, due 31 October.
- Form 112 — the consolidated audit report under Section 348 of the Income-tax Act, 2025, due one month before ITR-7.
- AOC-4 and MGT-7A — for Section 8 Companies, filed with the MCA after every AGM.
- FC-4 — for FCRA-registered NGOs, due 31 December, NIL filing mandatory even with no foreign receipts.
Frequently Asked Questions
Can one person start an NGO in India?
Not alone as a legal entity—Trusts need 2 trustees, Section 8 Companies need 2 directors, and Societies need 7 members.
How much money do I need to start an NGO?
Core registration typically costs ₹5,000 to ₹30,000 depending on the structure, plus a similar amount for post-registration steps like NGO Darpan and RNPO (12A/80G) filing in the first year. A Trust is generally the cheapest option, and a Section 8 Company the most expensive.
Do I need 12A and 80G to start an NGO?
Not to register the entity itself, but without RNPO (12A/80G) status, your NGO’s income is taxable, and donors get no deduction—which makes it very difficult to raise meaningful funds.
How long does it take to start an NGO from scratch?
Core structure registration takes 1–6 weeks depending on the type. Add NGO Darpan (roughly 2–4 weeks) and RNPO provisional registration (about a month), and budget 3–4 months for a fully funding-ready NGO.
Which structure is best for receiving CSR funds?
A Section 8 Company is generally preferred since corporate CSR teams are more familiar with MCA-regulated entities, though trusts and societies with valid RNPO status and CSR-1 registration are equally eligible under the law.
Can students or minors start an NGO?
Founders, trustees, and directors must be 18 or older. A student under 18 can still be involved by partnering with a parent, teacher, or mentor as a co-founder who meets the age requirement.
Author
Srijita Chatterjee
I am a Content Specialist holding a Master’s degree and with over 5 years of experience in the creative arena. I specialize in breaking down complex concepts into clear, understandable insights that help my viewers deeply engage and retain. Known for my approachable and engaging style, I am committed to providing accurate, trustworthy information that empowers individuals and organizations to make informed decisions and achieve their goals.
Written by Srijita Chatterjee. Last updated on September 17, 2026
