Comparison
Comparison
| S. No. | Basis of Difference | Trust | Society | Section 8 Company |
| 1. | Governed under which Legislation | Indian Trust Act, 1882 | Societies Registration Act, 1860 | The Companies Act 2013 |
| 2. | Regulatory Authority | Registrar of the relevant area is authorized to regulate and register a Trust. | Registrar of the relevant area is authorized to regulate and register a Trust. | Registrar of the Companies of the State in which the Section 8 companies registered office is located will have the authority to register and regulate it. |
| 3. | Constitution Document | Trust Deed | Memorandum of Association & Rules and Regulations/ Bye Laws | Memorandum of Association & Article of Association |
| 4. | Stamp Duty | Required The value of stamp duty is depending upon the value of the Trust property. | Not required | Required The value of stamp duty is depending upon the value of the Company property. |
| 5. | Members Required | Minimum two persons | Minimum seven persons | Minimum two persons are required for a private limited company and Seven persons for a public limited company |
| 6. | Management | Trust is managed by their Trustee | Societies are managed by members of Governing body. | Board of Directors is solely responsible for the management. |
| 7. | Ownership | Trustees are the owner of the Trust properties. | Society itself is the owner of the society properties. | Company is the absolute owner of the property. |
| 8. | Dissolution | Generally, public trust cannot be dissolved. | A society may be dissolved with the approval of 3/5th members present and voting in the general meeting of the society. | A Section 8 company may be winded up as per the provisions prescribed under the Companies Act. |
| 9. | Annual Compliance | Not required | Within 14 Days from the next day of the AGM file updated list of governing body with the registrar of the societies as prescribed in Societies Registration Act. | Required to file its annual return and annual accounts within specified time with the Registrar of companies. |
| 10. | Transparency in working | Low | Low | Working is highly transparent as everything is into public domain. |
| 11. | Grant of subsidy by the government | Moderately preferred | Moderately preferred | Most preferred |
| 12. | Foreign Contribution Regulation Act, (FCRA) registration | Moderately preferred | Moderately preferred | Most preferred |
| 13. | Change in the board of directors/ trustees Members | It’s very easy in case of a Trust if the testator is there. | Society functions through the governing council and any change are to be as per the constitution documents. | Easy |
| 14. | Time Period involved in registration/ formation | 20-25 working days | 20-25 working days |