Starting an NGO in India is a sequence, not a single registration. You form the organisation under one of three laws, give it a PAN and a bank account, then register it with the income tax department so its income is exempt and its donors can claim a deduction. Only after that do the funding-specific registrations come in: NGO Darpan for government grants, CSR-1 for company CSR money, and FCRA for foreign money.
Getting the order right saves months. Most delays come from doing a later step before an earlier one, or from a founding document that has to be redrafted because the tax department will not accept its objects. This guide walks through the NGO setup steps in order and points to the detailed explainers for each. If you want the first stage handled, we can help you register a trust, society or NGO, starting with the choice of structure.
The route on one page
| Stage | What you get | Needed by |
|---|---|---|
| 1. Choose a structure | A decision and a draft founding document | Everyone |
| 2. Register the organisation | Registered trust deed, society certificate, or incorporation with a Section 8 licence | Everyone |
| 3. PAN and bank account | The organisation’s own PAN and account | Everyone |
| 4. Income tax registration and donor approval | Exemption for the NGO; deduction for donors (old 12A and 80G) | Anyone taking donations |
| 5. NGO Darpan | Unique ID | Government grants and other uses |
| 6. CSR-1 | CSR registration number | NGOs implementing CSR projects |
| 7. FCRA | Registration or prior permission | NGOs receiving foreign money |
| 8. Yearly compliance | Continued registrations | Everyone |
Stage 1: Choose the structure
| Structure | Law | Usually suits |
|---|---|---|
| Public charitable trust | State public trust law, or deed registration where there is none | A small founder-led charity that wants stable control |
| Society | Societies Registration Act, 1860 or the state’s own Act | An association of seven or more members |
| Section 8 company | Companies Act, 2013 | An organisation planning CSR or institutional funding with an independent board |
Our separate comparison of a Section 8 company, trust and society covers control, paperwork and conversion in detail. One point people often miss: the Indian Trusts Act, 1882 expressly does not apply to public charitable endowments, so a charitable trust is governed by state law, not by that Act.
Write the objects for the tax department, not just the registrar
Whatever you choose, the objects will be read twice: once by the registering authority, and again by the income tax department at stage 4. Clauses that allow benefit to a particular religious community or caste, that let income go to founders or their relatives, or that are so broad they include ordinary business, cause trouble later. Draft them narrowly and charitably, and add a dissolution clause that sends surplus assets to another charity, not to members.
Stage 2: Register the organisation
- Trust: the deed is executed on stamp paper as the state requires and registered; in states with a public trust Act, the trust is also registered with the Charity Commissioner or equivalent authority.
- Society: the founding members file the memorandum and rules with the Registrar of Societies of the state.
- Section 8 company: incorporated through MCA’s SPICe+ form, which includes the Section 8 licence, with the certificate of incorporation and licence issued together. Our Section 8 company incorporation page explains that service.
Keep certified copies of everything from this stage. Every later application asks for the registration certificate and the founding document.
Stage 3: PAN and a bank account in the NGO’s name
The organisation needs its own PAN. For a Section 8 company, PAN and TAN are applied for through SPICe+ and issued with incorporation. Trusts and societies apply separately. Then open a bank account in the organisation’s name, with the signatories authorised by a resolution of the trustees, governing body or board.
Do not run donations through a founder’s personal account while you wait. It muddles the accounts that the tax department will ask for at stage 4 and can create a tax problem for the founder.
Stage 4: Income tax registration and donor approval
This is where “tax exemption” actually comes from. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, so the familiar names map to new sections: registration of the NGO (old 12A/12AB) is now under section 332, and approval for donors’ deduction (old 80G) is under section 354.
Both are sought on one common form on the e-filing portal. According to the department’s Form 104 and 106 FAQ, an NGO that has not started its activities applies for provisional registration on Form 104, and the order is generated automatically seven days after filing; an NGO that has started applies for regular registration on Form 105, within six months of starting activities. Our post comparing 12A and 80G explains validity and renewal, and our 12A and 80G application assistance prepares and files the forms.
Apply for provisional status early, ideally as soon as the PAN and bank account are ready. A donor’s deduction depends on the approval being in place when they give, and that is a difficult conversation to have with a first-time funder.
Stage 5: NGO Darpan
NGO Darpan is NITI Aayog’s register of voluntary organisations, and the unique ID it issues is needed for grants from central ministries, among other uses. Our NGO Darpan explainer covers who needs the ID and how enrolment works.
Stage 6: CSR-1, if you will implement CSR projects
Companies can spend their CSR money through outside entities only if those entities are registered on Form CSR-1 with MCA. Under the CSR rules as amended in 2021, an independent NGO needs 12A and 80G registration and a three-year track record in similar activities, so build that record from year one. Our post on CSR-1 applicability sets out who qualifies, and our CSR-1 filing service handles the form.
Stage 7: FCRA, if you will receive foreign money
Money from foreign sources is governed by the Foreign Contribution (Regulation) Act, 2010. An NGO cannot receive it without either registration or prior permission from the Ministry of Home Affairs, applied for on the FCRA portal. Registration has eligibility conditions around how long the organisation has existed and what it has spent on its objects; prior permission is for a specific amount from a specific donor. Foreign contribution is received in a designated FCRA account, kept separate from local funds and reported to the Ministry. Take advice on the current conditions before you accept a single rupee from abroad.
Stage 8: The yearly compliance that keeps it all alive
Each registration has its own annual duties, and missing them is the most common way NGOs lose what they built in the first year:
- Accounts: books, a receipt for every donation, and a record of how income was applied to the objects.
- Income tax: apply the required share of income, get the accounts audited when the law requires, file the return and the statement of donations, and renew registration at least six months before it expires.
- The structure’s own filings: ROC filings and board meetings for a Section 8 company (our Section 8 company compliance post lists them); annual lists or state filings for societies and trusts.
- Funding registrations: keep the Darpan profile current, send utilisation reports to CSR funders, and file FCRA returns where they apply.
Changing the objects is the classic trap. For a Section 8 company it needs Central Government approval under company law, and for any NGO a change that takes the objects outside the conditions of its income tax registration triggers a fresh application within the time the Act allows.
A realistic first year
For example, a group of five people setting up an education charity might work like this:
- Month 1: agree on a trust with three trustees, draft a deed with narrow charitable objects and a dissolution clause, and register it.
- Month 2: apply for the trust’s PAN, open the bank account, and file Form 104 for provisional registration and approval.
- Month 3 onwards: start activities, keep proper books, and enrol on NGO Darpan.
- Within six months of starting activities: file Form 105 for regular registration.
- Year 3 or 4: once there is a three-year record of similar work, file CSR-1; consider FCRA if foreign donors are interested.
The timing of each government step is out of anyone’s hands, so build slack into any plan you share with funders.
Frequently asked questions
How long does it take to open an NGO in India?
Registration of the organisation itself is the first milestone; tax registration, Darpan and CSR-1 follow in stages over months and, for CSR-1, years. Plan the whole first year, not just the registration.
Can we start working before tax registration?
Yes, and many NGOs do. Provisional registration exists precisely for organisations that have not started yet, so applying early costs nothing in flexibility.
Which structure gets tax exemption faster?
None. The income tax process and forms are the same for trusts, societies and Section 8 companies.
Can a trust or society become a Section 8 company later?
Not by a direct conversion. A new company would have to be formed and the work and assets moved across in line with the deed or bye-laws and state law, which is why the choice at stage 1 deserves care.
Complianto (complianto.in), operated by Mentorcorp Private Limited, is a private consultancy and is not affiliated with any government body. We do not issue official documents. We charge a professional fee for application assistance and advisory services. Applicants can apply directly to the government without our fees via the official portals: MCA (mca.gov.in), Income Tax (incometax.gov.in), GST (gst.gov.in), MSME (udyamregistration.gov.in), FSSAI (foscos.fssai.gov.in), Startup India (startupindia.gov.in), and IP India (ipindia.gov.in).
This article is general information, not legal or tax advice.
