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Non-Profit Structures

Converting a Trust or Society into a Section 8 Company

Last updated: 2 October 2026

A section 8 company offers a non-profit a clear corporate structure, board governance and wide recognition with donors and CSR funders. Our team plans the move from a trust or society, handles the company law steps and the fresh tax registrations.

Overview

How a trust or society moves to a section 8 company

  • A society can register as a company under section 366 of the Companies Act, 2013 (Form URC-1), obtaining a section 8 licence as part of incorporation.
  • A trust is usually moved by incorporating a new section 8 company and transferring the trust’s activities and assets to it, in line with the trust deed and applicable trust law.
  • The section 8 company needs its own charitable registration under the Income-tax Act, 2025 — registration as a non-profit organisation (earlier section 12A/12AB, now section 332) and donor deduction approval (earlier section 80G).
  • Assets built from charitable funds must stay with charitable objects. Transferring them to an entity that is not eligible can trigger tax on accumulated income under the new Act (earlier section 115TD), so the transfer must be structured with care.
  • CSR registration (Form CSR-1) and any FCRA registration are applied for afresh where needed.

Based on the Companies Act, 2013, the Income-tax Act, 2025 and applicable trust and society laws. Last updated: 27 September 2026.

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What This Service Covers

What our conversion service covers

1

Reviewing the trust deed or society bye-laws for permitted transfers

2

Section 8 company incorporation or section 366 registration

3

Transfer of programmes, assets and staff

4

Fresh income tax non-profit registration and 80G approval

5

CSR-1 and other registrations for the new entity

Key facts at a glance

Section 8

Licence for non-profit companies

URC-1

Registration route for societies

Section 332

Non-profit registration under the Income-tax Act, 2025

80G approval

Needed afresh for donor deductions

Exit tax

Risk if charitable assets go to an ineligible entity

CSR-1

Registration to receive CSR funds

Common Issues

Where these conversions commonly go wrong

The tax side needs as much care as the company law side.

Assets moved carelessly

Transfers that trigger tax on accumulated charitable income.

Deed restrictions ignored

The trust deed does not allow the transfer planned.

Registrations lapse

Donor and CSR approvals not in place for the new entity.

Related Services

Related services

Related non-profit services.

Section 8 Company

Forming a section 8 company.

80G & 12A Registration

Tax registrations.

NGO Taxation

Tax compliance for non-profits.

CSR Compliance

Receiving CSR funds.

Documents Required

Documents we need from you

Existing Entity Documents

New Company Documents

Our Process

How we manage the transition

1

Review

Deed, bye-laws and tax position reviewed.

2

Route

Section 366 registration or new company chosen.

3

Incorporation

Section 8 licence and incorporation.

4

Transfer

Programmes and assets moved with care.

5

Tax registrations

Non-profit registration and 80G applied for.

6

Other registrations

CSR-1, FCRA and others as needed.

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After Conversion

After conversion

The section 8 company has both company law and tax compliance.

ROC filings

Annual financial statements and returns.

Tax filings

Non-profit tax return and donation statements.

85% application

Charitable income applied as required.

Old entity

Trust or society wound up or kept, as planned.

Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    Can a trust be converted into a section 8 company?

    Usually by forming a new section 8 company and transferring the trust’s activities and assets, if the trust deed and law allow.

    Yes, under section 366 of the Companies Act through Form URC-1.

    No. The new company applies afresh under the Income-tax Act, 2025.

    Yes. Charitable assets moved to an ineligible entity can trigger tax on accumulated income, so the transfer must be structured carefully.

    It offers a clear corporate structure, board governance and wide acceptance with donors and CSR funders.

    About Expertvuw

    Who handles your case

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    This work is handled by Expertvuw’s team, with filings made on the MCA portal. Certifications and audits required by law are issued by independent practising professionals engaged for your case.

    Expertvuw Management Pvt Ltd