ICAI Registered · Vadodara, Gujarat

Trust, Section 8 and 80G Registration in Vadodara

Structure selection, registration, 12AB and 80G approval, FCRA clearance and the annual compliance that keeps all of it alive. Most NGOs lose their exemption on a missed filing rather than a failed application — we work to prevent both.

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Core NGO Services

Public Charitable Trust RegistrationGujarat Public Trusts Act, Charity Commissioner
Society RegistrationSocieties Registration Act, 1860
Section 8 Company IncorporationCompanies Act 2013, SPICe+ and licence
12AB RegistrationForm 10A and 10AB — formerly 12AA
80G ApprovalDeduction eligibility for your donors
FCRA Registration & Prior PermissionFC-3A, FC-3B and annual FC-4
CSR-1, Darpan & Annual Compliance10B or 10BB, Form 10BD, ITR-7

3Structures to Choose From

12ABReplaced 12AA in 2021

5 YearsFCRA Registration Validity

31 MayForm 10BD Due Date

Why It Matters

Registration Is the Easy Part. Keeping It Is the Work.

Setting up a trust or a Section 8 company is a solved problem. Any competent professional can get you registered. What separates a functioning NGO from a dormant one is what happens in the five years afterwards — the renewals, the donation statements, the audit reports, the FCRA return that has to go in by December whether or not you received a rupee of foreign contribution.

The exemption regime is now built on periodic revalidation rather than permanent approval. A registration granted today expires. If the renewal application is not filed in the window prescribed, the exemption lapses, and restoring it is considerably harder than obtaining it was.

We see the consequences often enough: a trust that raised money for years discovering its 80G had quietly expired, or an NGO whose donors cannot claim deduction because Form 10BD was never filed. Neither problem is difficult to prevent. Both are painful to fix.

Approvals Now Expire

Provisional registration under 12AB runs three years and regular registration five. Renewal is your responsibility, not the department's reminder.

Donors Depend on Your Filing

A donor can only claim 80G deduction if you file Form 10BD and issue Form 10BE. Miss it and their claim fails, however genuine the donation.

Foreign Funds Are Tightly Controlled

Receiving foreign contribution without FCRA registration or prior permission is an offence, not an irregularity. There is no retrospective cure.

Corporate Donors Need CSR-1

No company can route CSR spend to you unless you are registered in Form CSR-1 with the MCA. It is a short filing that unlocks a large funding channel.

First Decision

Trust, Society or Section 8 Company?

This choice shapes your governance, your credibility with institutional funders, and how much compliance you carry forever. It is worth more thought than it usually gets.

	Public Charitable Trust	Society	Section 8 Company
Governing law	Gujarat Public Trusts Act, 1950	Societies Registration Act, 1860	Companies Act, 2013
Registered with	Charity Commissioner	Registrar of Societies	Registrar of Companies
Minimum members	Two trustees	Seven members	Two directors and two shareholders
Founding document	Trust deed on stamp paper	Memorandum and rules	MOA in Form INC-13 and AOA
Governance	Trustees, often for life; least flexible to change	Elected governing body; annual general meeting required	Board of directors; strongest statutory governance
Compliance load	Lightest	Moderate	Heaviest — AOC-4, MGT-7 and audit
Credibility with funders	Adequate	Good	Strongest, especially for CSR and foreign funders
Best suited to	Family or founder-led charity with a settled purpose	Membership-driven bodies, clubs, associations	NGOs seeking CSR funds, grants or institutional partnerships

As a rule of thumb: if you intend to raise CSR money or institutional grants, the extra compliance of a Section 8 company usually pays for itself in credibility. If you are a family running a modest charitable activity, a trust is proportionate.

Tax Exemption

12AA Is Now 12AB — and Both You and Your Donors Are Affected

People still search for “12AA registration”, and we understand why, but the section was replaced. Since 1 April 2021, registration of charitable trusts and institutions is granted under Section 12AB. Every entity previously registered under 12AA had to migrate. If someone is still offering you “12AA registration” today, that is a signal worth noticing.

Two separate approvals matter, and they do different jobs. 12AB exempts the institution's own income from tax. 80G lets your donors claim a deduction — ordinarily 50% of the amount donated. You can hold one without the other, but most NGOs need both.

Form 10A — New Applicants

Used for provisional registration by a newly formed trust or institution, and for both 12AB and 80G. Provisional registration is granted for three years.

Form 10AB — Regular and Renewal

Used to convert provisional registration to regular, and to renew existing registration. Regular registration runs five years and must then be renewed again.

Application Timing

Provisional holders must apply for regular registration at least six months before expiry, or within six months of commencing activities, whichever is earlier. Missing the window is the most common and most costly error we see.

Form 10BD and 10BE

Every institution with 80G approval must file a statement of donations in Form 10BD by 31 May and issue each donor a certificate in Form 10BE. Without this, your donor's deduction claim fails.

Foreign Funding

FCRA Registration and Prior Permission

The Foreign Contribution (Regulation) Act is the strictest regime an Indian NGO deals with, and it is administered by the Ministry of Home Affairs rather than the tax department. Accepting foreign contribution without clearance is an offence with no retrospective remedy, so this is one area where getting ahead of the requirement genuinely matters.

Registration — Form FC-3A

For established organisations. Generally requires at least three years of existence and a demonstrated record of spending on core charitable activities over that period. Valid five years.

Prior Permission — Form FC-3B

For newer organisations, or where registration is not yet available. Tied to a specific donor, a specific amount and a specific project rather than granted at large.

The Designated SBI Account

All foreign contribution must first be received into an FCRA account at the State Bank of India, New Delhi Main Branch. Utilisation accounts elsewhere are permitted, but the first receipt cannot be.

Annual Return FC-4

Due by 31 December each year, and required whether or not any foreign contribution was received during the year. A nil return is still a return.

Renewal — Form FC-3C

Must be applied for within six months before the five-year registration expires. Lapsed registration cannot simply be revived by filing late.

Operating Restrictions

Administrative expenses are capped at a prescribed share of foreign contribution, sub-granting to other organisations is prohibited, and Aadhaar of all office bearers is required. These constraints should shape your budget before the money arrives.

Often Overlooked

The Registrations Most NGOs Forget

These are short filings that unlock funding or prevent problems, and they are missed constantly.

Form CSR-1 with the MCA

Mandatory before any company can route Corporate Social Responsibility spend to you. Requires 12AB and 80G registration in place. Without it, a willing corporate donor legally cannot fund you.

NGO Darpan Registration

A NITI Aayog unique ID. Required for most government grants, and a prerequisite for FCRA. Free, quick, and routinely left until it blocks something urgent.

PAN, TAN and Bank Mandates

The institution needs its own PAN, and TAN once it deducts tax at source — which happens as soon as you pay rent above the threshold or engage professionals.

Registration Under State Law

Depending on activity, an NGO may separately need registration under state welfare, education or health legislation. Charitable purpose alone does not exempt you from sector regulation.

Every Year

The Annual Compliance Calendar

This is where exemptions are actually lost. None of it is difficult, but all of it is dated.

Filing	Who It Applies To	Timing
Audit report in Form 10B	Institutions with income above the prescribed limit, receiving foreign contribution, or applying income outside India	Before the income tax return due date
Audit report in Form 10BB	All other institutions registered under 12AB	Before the income tax return due date
Form 10BD statement of donations	Every institution holding 80G approval	By 31 May following the financial year
Form 10BE donor certificates	Issued to each donor after filing 10BD	By 31 May following the financial year
Income tax return in ITR-7	All registered trusts, societies and Section 8 companies	Annually, per the applicable due date
FCRA annual return in Form FC-4	Every FCRA registered entity, nil return included	By 31 December
AOC-4 and MGT-7	Section 8 companies only	Within the prescribed period after the AGM
Renewal under Form 10AB	Provisional and regular 12AB and 80G holders	Six months before expiry

FAQs

Frequently Asked Questions

Is 12AA registration still available?

No. Section 12AA was replaced by Section 12AB with effect from 1 April 2021, and all entities registered under the old section were required to migrate. The term survives in common usage and in search results, but any current application is made under 12AB using Form 10A or Form 10AB. If a consultant is offering you 12AA registration today, ask them what they actually mean.

What is the difference between 12AB and 80G?

They protect different people. Registration under 12AB exempts the institution's own income from tax. Approval under 80G allows your donors to claim a deduction on what they give you, ordinarily 50% of the donation. Most NGOs apply for both together, but they are separate approvals with separate applications and separate renewal cycles.

Which is better — a trust or a Section 8 company?

It depends on where your money will come from. A trust is simpler, cheaper and lighter to run, which suits a family or founder-led charity. A Section 8 company carries real corporate compliance but gives you the governance structure and transparency that CSR donors, institutional grant-makers and foreign funders generally prefer. If you intend to raise CSR funds, the extra compliance usually earns its keep.

How long does 12AB and 80G registration take?

Provisional registration under Form 10A is generally processed relatively quickly, since it is granted largely on the strength of the application. Regular registration under Form 10AB involves substantive examination of your activities, accounts and objects, and takes longer. The determining factor is usually the quality of the documentation — particularly evidence that you are actually carrying out the charitable objects stated in your deed.

Can a newly formed NGO receive foreign donations?

Not under FCRA registration, which generally requires around three years of existence and a demonstrated record of charitable spending. A new organisation can instead apply for prior permission in Form FC-3B, which is tied to a named donor, a specified amount and a defined project. Receiving foreign contribution without either is an offence, and it cannot be regularised afterwards.

What happens if we miss the renewal deadline?

The exemption lapses. Income that would have been exempt becomes taxable, and in the case of 80G your donors lose their deduction for the affected period. Restoration is possible in some circumstances but is a substantially harder application than a timely renewal would have been, and there is no guarantee. This is the single strongest argument for keeping a compliance calendar.

Do we need to file a return if we had no activity?

Yes. A registered institution files its income tax return regardless of activity levels, and an FCRA registered entity must file Form FC-4 by 31 December even where no foreign contribution was received at all. Dormancy is not an exemption from filing, and repeated non-filing is itself a ground for adverse action.

Setting Up or Fixing an NGO in Vadodara? Let's Talk.

Structure selection, trust or Section 8 registration, 12AB and 80G approval, FCRA clearance or a lapsed exemption that needs sorting — bring us the documents and we will tell you honestly where you stand.

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