Amit Agrawal1 Answers
Team Strategum Staff answered 2 years ago Here is a comparison chart among a Trust, Society an Section 8 Company;
| Basis | Trust | Society | Section 8 Company |
|---|---|---|---|
| Statute/Legislation | Trust 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. |
| Jurisdiction | Trusts 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 Document | Trust deed. | Memorandum of Association. | Memorandum and Articles of Association |
| Minimum Members | 2 | 7 | 2 |
| Management | Board of Trustees. | Governing Council | Board of Directors |
| Annual Compliance | There is no requirement of annual return filing. | Societies must file annually, with the Registrar of Societies | Legal requirement of annual compliance by filing of annual accounts and return of company with the Registrar of Companies. |
| Registration Period | 2 – 3 Weeks | 3 – 4 Weeks | 4 – 6 Weeks |
| Cost factor | Low | Medium | High |
| Recommendation for setting up a school | Most Recommended | Moderately Recommended | Moderately Recommended |