Starting an NGO in India in 2025 can feel overwhelming, but with the right legal structure and compliance in place, it becomes a straightforward process. Here’s a step-by-step guide to help you set up your NGO and make it ready for donations, CSR funds, and even foreign contributions.

1) Pick the Right Legal Structure

In India, NGOs are typically registered in one of three forms:

• Section 8 Company under the Companies Act, 2013 (best for scale, credibility, and governance).

• Public Charitable Trust under the Indian Trusts Act or state trust laws.

• Society under the Societies Registration Act, 1860 (state-level registration).

If you aim to work with corporates or international donors, a Section 8 company is often preferred because of its strong compliance and governance structure. It operates for charitable purposes and cannot distribute profits to its members.

2) Incorporate or Register Your Entity

For Section 8 Company (recommended for credibility):

1. Obtain DIN (Director Identification Number) and DSC (Digital Signature Certificates) for directors.

2. Apply through SPICe+ on the MCA portal for name reservation, MOA/AOA, and incorporation in a single process.

3. Receive your Certificate of Incorporation, along with PAN and TAN for the organization.

For Trust or Society:

• Draft a trust deed (for trusts) or a memorandum and rules (for societies).

• Identify settlor/trustees or governing body members.

• Register with the respective state registrar (process and requirements may vary by state).

3) Get Basic IDs and Accounts

After registration, complete the essentials:

• PAN for the NGO (mandatory for tax compliance and grant applications).

• Bank Account in the NGO’s name (you’ll need this for donations and future grants).

• NGO Darpan Registration (NITI Aayog) – this is required for applying to government schemes and projects.

4) Secure Tax Exemptions & Donor Benefits

Your NGO should apply for:

• 12A Registration – this gives your NGO income tax exemption.

• 80G Registration – this allows your donors to claim deductions on donations.

Both applications are submitted online through the Income Tax e-filing portal. These certificates not only build credibility but also make fundraising easier.

5) Access CSR Funding (CSR-1 Registration)

If your NGO plans to work on Corporate Social Responsibility (CSR) projects funded by companies, you must file Form CSR-1 with the Ministry of Corporate Affairs. After approval, your NGO will receive a CSR Registration Number, which is mandatory for implementing CSR projects.

6) Build Strong Governance & Policies

To gain donor trust and run smoothly, adopt:

• Board/Governing Body rules and a conflict-of-interest policy.

• Financial controls like dual signatories for expenses and approval systems.

• Compliance calendar for annual filings, audits, and reports.

Transparency and accountability make your NGO more attractive to funders and partners.

7) Plan for Foreign Funding (FCRA Registration)

If you want to receive donations from outside India, you must register under the Foreign Contribution Regulation Act (FCRA). The rules require:

• Applying for FCRA registration or prior permission.

• Receiving all foreign funds in a designated account at the SBI New Delhi Main Branch (NDMB).

• Keeping foreign and domestic funds strictly separate.

Only apply for FCRA when your NGO has at least three years of activity and a clear plan for foreign funding.

8) Stay Compliant After Starting

Your NGO’s responsibilities don’t end with registration. Ongoing compliance is critical:

• Maintain accounts & audits: Keep proper records and get annual audits done.

• File statutory returns:

  • Section 8 companies file returns and financials with MCA.

  • Trusts and Societies follow state-specific rules.

• CSR projects: Keep project-wise utilization records and reports.

• FCRA NGOs: File annual FC-4 returns and maintain designated accounts.

9) Timelines, Costs & Practical Tips

• Incorporation: Section 8 companies can be registered fairly quickly through the MCA’s SPICe+ system, while Trust and Society registrations depend on the respective state registrar.

• 12A/80G Registration: Apply early and maintain activity proof like bank statements and reports. Renewal is mandatory, so track deadlines.

• CSR-1 Registration: If you’re targeting CSR funds, file this form before reaching out to corporates.

• FCRA Registration: Apply only when you’re ready with a track record of compliant operations.

10) Quick 2025 Checklist

• Choose your NGO’s structure (Section 8 / Trust / Society).

• Register/incorporate the entity.

• Get PAN, open a bank account, and enrol on NGO Darpan.

• Apply for 12A and 80G tax registrations.

• File CSR-1 if planning CSR-funded projects.

• Apply for FCRA registration if seeking international funds.

• Establish governance policies and a compliance calendar.

Conclusion

Starting an NGO in India in 2025 requires clear planning, strong governance, and timely registrations. Begin with the right legal structure, secure tax benefits through 12A and 80G, register for CSR funding, and only later apply for FCRA when you’re ready for foreign donations. With proper compliance and transparency, your NGO will not only gain credibility but also attract sustainable funding to create meaningful impact.

Also Read: Repur Tech

Frequently Asked Questions (FAQs)

1. How much does it cost to start an NGO in India in 2025?

The cost of starting an NGO in India depends on the type of registration. On average:

• Trust registration: ₹3,000 – ₹10,000

• Society registration: ₹5,000 – ₹15,000

• Section 8 Company registration: ₹10,000 – ₹25,000
  Additional expenses may include notary charges, government fees, and professional consultancy costs.

2. How long does it take to register an NGO in India?

The timeline depends on the registration type and documentation:

• Section 8 Company: 10–20 working days

• Society: 10–15 working days

• Trust: 7–10 working days
  You should also factor in additional time for 12A, 80G, and CSR-1 registrations (30–45 days).

3. Which type of NGO is best to start in India?

If you’re planning large-scale projects or want to collaborate with corporates, a Section 8 Company is best.
For smaller, community-based initiatives, a Trust or Society structure works well.
All three options are valid but differ in compliance requirements and credibility level.

4. Can a single person start an NGO in India?

No. Every NGO requires a minimum number of founding members:

• Trust: Minimum 2 trustees

• Society: Minimum 7 members

• Section 8 Company: Minimum 2 directors and members
  However, one person can still play a leading role as the founder or managing trustee.