Purpose of Trust Registration by the sec -8 company under companies act.

The main purpose of trust Registration is the establishment of the company as sec -8 company is for the promotion of non-profit objectives like commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object. Any profits gained as an income are used for promoting their welfare work and are not distributed to the shareholders as dividend funds.

A Section 8 Company has similar features to a Trust or Society expect, a section 8 Company is registered with the Ministry of Corporate Affairs. NGO/Trusts and Societies are registered under the State laws. Section- 8 Company is recommended for the big operation sizes like for opening of the university, College, School, research center, Sports Academy and technical college etc.

A minimum of 2 directors are needed or required if the sec 8 company is made/incorporated as a private limited. And will require 3 directors in case of public limited. The maximum members that can be recruited could be not more than 200 in private limited company, while public limited has no such limit. There is also no need for any minimum paid capital in case of Trust Registration under sec-8 Company.


Why Need NGO Registration?

In our society, many people’s do social, charitable, welfare and development work and some other activities at their own level. In such cases they don’t register the group for NGO. But if someone is willing to work with any social NGO Registration organization then, they can do voluntary service without the responsibility for a resource. The social workers or volunteers generally plan to form an organization and then they have to trust registration legally. Initially, we can run, operate and organize the programmer at our own but we have to make a team & group. After building a team or group, it is easy to carry or organize the work. Here below are some points as to why we need trust registration organization even when we can run at our own level:-

When a team or group of persons are raising funds or getting the donations then it is must for the accountability to get a legal status for the organization. And hence the need of NGO Registration arises.

Once the trust registration done then the resources & assets can be easily received in the name of the organization, whereas in case, if it is not registered then it only gains resources from other individuals which sometimes may lack.
There are some ethical & legal, social regulations that must be followed if we are working as a group or organization.
NGO Registration decides the status of the organization, & it is easy to get the help from the registered authorities, relevant departments, technical support and much more.

To apply for NGO Registration is not a big deal but NGO registration under which law & act matters, its aim, objects matters the most. To run a profitable business and a non-profitable organization requires an almost same procedure to manage with certain obligations. After establishing NGO/Trust it is necessary to maintain the transparent & detailed records of social activities

For registering a Company or NGO with central Government Digital Signature Certificate (DSC) and Director Identification Number (DIN) is required for all directors. DIN & DSC usually take 3-5 working days.


Documents required From All Directors and Members


  1. PAN Card
  2. Latest Bank Statement/Telephone or Mobile Bill
  3. Voter’s ID/Passport/Driver’s License
  4. Passport-sized photograph of all directors and shareholder
  5. Scan copy of Signature (signature should same as on PAN Card)
  6. Consent to act as Director in Form DIR-2
  7. Directors Directorship details in other Companies/LLPs, if any.
  8. For Proposed Registered office (Residential or commercial)
  9. Any Utility bills Scan copy of Rent agreement with NOC from owner