What is the difference in Trust, Society and Section 8 Company?

School Set-up GuideCategory: K-12 School Setup GuideWhat is the difference in Trust, Society and Section 8 Company?
Amit Agrawal asked 2 years ago

Please list out the major differences.

1 Answers
Team Strategum Staff answered 2 years ago

Here is a comparison chart among a Trust, Society an Section 8 Company;

BasisTrustSocietySection 8 Company
Statute/LegislationTrust is governed by the Indian Trust Act, 1882.Societies are governed by the Societies Registration Act 1860. Many states, however, have variants on the Act.Section 8 Companies are governed by the Indian Companies Act, 2013.
JurisdictionTrusts are registered under the jurisdiction of Deputy Registrar/Charity commissioner of the relevant area.The power to register a society lies in the hand of Registrar of societies.The power to register a section 8 Company lies with the Regional Director & Registrar of Companies of concerned state.
Registration DocumentTrust deed.Memorandum of Association.Memorandum and Articles of Association
Minimum Members272
ManagementBoard of Trustees.Governing CouncilBoard of Directors
Annual ComplianceThere is no requirement of annual return filing.Societies must file annually, with the Registrar of SocietiesLegal requirement of annual compliance by filing of annual accounts and return of company with the Registrar of Companies.
Registration Period2 – 3 Weeks3 – 4 Weeks4 – 6 Weeks
Cost factorLowMediumHigh
Recommendation for setting up a schoolMost RecommendedModerately RecommendedModerately Recommended

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