Trust, Society, Section 8 Companies are the structures suitable for Not for Profit organization and NGO's.
The registration process for trust includes drafting of the trustee deed with minimum two trustees and registration of trust deed at sub-registrar office for which trustees need to be personally present.
Upon execution of the trust deed, trust can apply for PAN and once PAN is issued, Trust can open the bank account and carry on the operation. Trust is regulated by the provisions of the Indian Trust, 1882.
The society Registration process involves, drafting of the Memorandum of Association and Bye-Laws, there should be a minimum of seven members who should subscribe to the Memorandum and bye-laws, and application for society registration is made to the registrar of societies under the respective states society registration Act.
Section 8 company is a company is registered under the Companies Act. The process of registration is similar to that of a Private Limited company.
The company is registered as per the provisions of section 8 of Companies Act 2013. Such a company is allowed to operate without term Pvt Ltd mentioned as part of its names
|Basis||Trust||Society||Section 8 Co.|
|1. Statute/ Legislation||Governed by provisions of Indian Trust Act, 1882||Governed by provisions of Societies Registration Act, 1860 OR respective state Society Registration Acts.||Governed by provisions of Section 8 of the Companies Act, 2013.|
|2. Jurisdiction||Regulated by Deputy Registrar or Charity Commissioner of the relevant area||Regulated by Registar of Society||Regulated by Registrar of companies.|
|3. Constitution Documents||Trust Deed||Memorandum Of Association and Bye Laws||Memorandum of Association and Articles of Association|
|4. Minimum persons required||Atleast two Trustees||Atlease Seven Members||Atltest two Director and Subcribers.|
|5. Management||Managed by Board of Trustees||Managed by Executive Committee or Management Committee||Managed by Board of Directors|
|6. Annual Filing||There is no annual filing required||Must file annual accounts and returns with Registar of Societies||Must file Annual Accounts and Annual Returns with Registar of Companies|
|7. Time Period for registration||1 week||2 week||2 week|
|8. Registration u/s 12A and 80G of Income tax Act||Granted||Granted||Granted|
|9. From the point view of Foreign Contribution Regulation Act (FCRA)||Moderate Preferred||Moderate Preferred||Moderate Preferred|