Is an NGO the same as a Non-Profit Company?

No. NGO is a broad term that includes Trusts, Societies, and Section 8 Companies. A Non-Profit Company specifically refers to a Section 8 Company.

Which is better for a small charitable trust?

For small-scale charitable work, a Trust or Society is simpler and cost-effective. For larger operations with multiple donors, a Section 8 Company offers better governance.

Can a Non-Profit Company pay salary to its directors?

Yes, but salaries must be reasonable and as per market standards. Profits cannot be distributed as dividends.

How can Liquetax help with NGO registration?

Liquetax provides end-to-end support: structure selection, document drafting, filing, and post-registration compliance.

NGO & Section 8

NGO vs Non-Profit Company: Key Legal Differences

Understand the key legal differences between NGO and Non-Profit Company in India. Learn about registration, governance, tax benefits, and how Liquetax helps.

What this guide covers

What does NGO vs Non Profit Company: Key Legal Differences mean in practice?
Who is affected and what should they check first?
Which documents or records should be kept ready?
What common mistakes should be avoided?