Society , Trust Deed Registration
Trust Registration
The Indian Trust Act, 1882 regulates the first and oldest form of not-for-profit organization, trusts. A trust is an agreement between two parties in which one party holds property in full confidence for another. To form a Trust, you need to follow proper procedure which involves legal process. At Legal Vistaar Consultants, we will make your Trust Deed Registration process easy and hassle free.
Owner of Trust: Trustees
Number of individuals required to form a Trust: 2
Categories of trusts:
- Public trust and private trust
- Discretionary & non-discretionary
- Testamentary & non-testamentary etc.
Society Registration
Modern societies are more advanced compared to traditional societies that are governed by their Memorandum & Byelaws. A general body is formed by seven members from the same state, or by eight members from different states, to come up with a common resolution. It could be Indians or foreigners. The number of members can be increased. There is one vote per member of the general body. So, are you looking for Society Registration? Experts at Legal Vistaar Consultants are here to guide you in all aspects for Society Registration.
Owner of Societies: Their members
Section 8 Registration
The Companies Act governs the formation of limited companies. Section 8 Company Registration grants them an exclusive license. This requires three conditions.
There should be at least two directors, who need not be members, and it can be formed with just two members, whether they are Indians or foreigners.
Owner of Section 8: Their shareholders
Parameters
- Statute/Legislation
- Regulating & Registering Authority
- Constitution Document
- Stamp Duty on the Constitution Document
- Minimum Members Required
- Management
Trust
- 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
- Deputy Registrar of the concerned area is authorised to regulate and register a Trust
- Trust Deed
- Non-Judicial Stamp duty is required to be paid as per the Stamp Act of the concerned state. The stamp duty depends on the value of the Trust property as well.
- Minimum two trustees are required, could be the artificial person created under an Indian law or a foreigner serving in this capacity
- Managed by their Trustee or Board of Trustee
Society
- The State Acts are applicable for state level Societies, whereas, for the societies operating all over India, the Societies Registration Act, 1860 is applicable
- Deputy Registrar of the concerned area is authorised to regulate and register a Society
- Memorandum of Association & Rules and Regulations
- Non-Judicial Stamp duty is required to be paid as per the Stamp Act of the concerned state.
- Minimum seven members are required for State-level society. Eight members from different states in which the society is operative are required to form a national level society, these members should be the individuals only
- Governed by a Managing Committee or by Governing Council
Section 8 Company
- Governed by the Indian Companies Act, 2013
- Regional office of the Registrar of Companies under the jurisdiction of which the Section 8 company falls, has the authority to regulate it. Registration is however, done by the Central Office of Registrar of Companies
- Memorandum & Article of Association
- Non-Judicial Stamp duty is required to be paid as per the Stamp Act of the concerned state.
- Section 8 companies can be set up as Private or Public Limited Companies. Minimum two shareholders are required for a private limited company, whereas seven shareholders for a public limited company.
- The Board of Directors is solely responsible for controlling the management
FAQs
What is the most transparent type of NGO?
Trusts and Societies are generally less transparent than Section 8 Companies since all information is publicly available. To build trust with donors and stakeholders, transparency is essential.
How are trusts, societies, and Section 8 companies different?
Trusts, societies, and Section 8 companies differ primarily in terms of their legal foundations and operational structures. The Indian Trust Act governs trusts, which entrust property to designated beneficiaries. Whether they operate at the state or national level, societies are regulated by the Societies Registration Act. The Companies Act of 2013 covers Section 8 companies