Parameter

Trust

Society

Section 8 Company

Meaning

It is considered as oldest/Traditional  form of charitable organisation. It is, in essence, an arrangement between parties whereby one party holds ownership over property on behalf of another person.

It is formed when a collection of people come together for a common charitable purpose. But it is not limited to charitable purposes but may extend to multiple other fields.

A company established with objects of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object and apply any profits into furthering the objective.

Regulated By

Private Trusts are governed by the Indian Trust Act, 1882. Public Trusts are governed by respective Trusts Acts of the state where these are established.

The State Acts are applicable for state level Societies, whereas, for the societies operating all over India, the Societies Registration Act, 1860 is applicable

Governed by the Indian Companies Act, 2013

Registering Authority

Deputy Registrar of the state

Registrar or Deputy Registrar of the particular state in which it is to be registered.

Registrar of Companies (ROC) or Regional Director

Registered as

NGO/NPO

NGO/NPO

NGO/NPO. They also enjoy all the privileges of a limited company Without add Pvt. Ltd. to the name.  Section 8 Company Name must end with the words like foundation, forum, association, federation, chambers, confederation, council, electoral trust, etc.

Constitution Documents

Trust Deed

MOA and rules and regulations

MOA and AOA

Minimum members required

2 trustees minimum

7 members minimum (5 for Jammu and Kashmir and Telangana)

2 directors and 2 shareholders. (The directors may also be the shareholders)

Management

Managed by Trustees

Managing Committee or Governing Council

Board of Directors

Change in Management

As per Provisions of the Trust Deed

   As per Society Rules and MOA

As per AOA

Change in Reg Address

Difficult

Difficult

Easy

Process /Documentation

Physical

Physical

Online

Annual compliances

Not Specified mandatory yearly compliance. General Compliance which required by An Assessee in Income tax.

The society must file the list of names, occupations and address of the managing committee members of the society to the Registrar annually

The company must file the annual returns and accounts with the ROC.

Audit

Mandatory for Only Public Trust

As per Society Regulations Mandatory

As per Companies act

Remuneration

Not Allowed -Trustees

Allowed-Member

Allow only in case of profit In Good Faith No Limit for Remuneration to   Employees.

Audit under IT Act

Mandatory If Obtained 80G/12A

Mandatory If Obtained 80G/12A

Mandatory If Obtained 80G/12A / Turnover exceeding tax audit limit

Grants and subsidies from the government 

Preferred less 

less Preferred less 

High Preferable