Differences Between Society, Trust, and Company

 Differences Between Society, Trust, and Company 

Differences Between Society, Trust, and Company


Trust and Company – When we want to register or get an NGO registered, we have three options whether to register the NGO as a Society or to register the NGO as a Trust. Register as a company or get the NGO registered as a company. A question mark arises in our mind, so it is necessary to understand the differences between Society, Trust, and Company.

Difference between Society, Trust, and Company. Differences in Society, Trust, and Company

Rules, Procedures, and Requirements

Company

Society

Trust

NGO Special Note

A non-profit company is an NGO.

Society is also an NGO.

Trust is also an NGO.

Act/law under which the NGO is registered.

Companies Act

Society Registration Act 1860

Indian Trusts Act / Bombay Trust Act / Devasthan Trust Act (Indian Trusts Act / Bombay Trust Act / Devasthan Trust Act)

How long does it take for NGO registration?

Maximum 6 months

Maximum 2 months

Maximum 2 weeks

Can family members become members of Society?

The director/director of the company can be anyone but there will be difficulty in getting financial grants.

Society cannot have members of the same family.

You can keep family members in the trust but any other member will be required to take a financial grant.

Member Requirement for State Level NGO

2 Member

7 Member

2 Member

for National Level NGO

2 Member

from different states

2 Members

There is no limit to the maximum number of members in the Society, Trust, and Company, you can make as many members as you wish. For running the NGO.

Authorized Institution for Registration

Registrar of Companies

Deputy Registrar of Societies

Sub Registrar of Registration / Charity Commissioner

Scope of

all

the organization All India Register at the national level All India and at the state level register organizations can work only in the state

India

to receive financial grants. The terms, conditions, and procedures are the same in company, society, and trust.

There is always a possibility of getting a financial grant for the company.

Society gets financial grants according to the terms and conditions of various ministries of the state and central government.

The trust gets financial grants according to the terms and conditions of various ministries of the state and central government.

Is the transfer of Directorship / Membership / Trusteeship possible?

There may be a transfer of directorship.

Membership cannot be transferred as per law.

According to the Indian Trust Act, there is no option for the transfer of trusteeship.

Can anyone become a Director/Member/Trustee of a Foreign Society?

You can become a director, you can become a

member.

You can become a trustee.

Will I get FCRA if a foreigner stays in an NGO?

If there is a foreigner in the company, there will be a problem in taking FCRA.

If there is a foreign member in the society, it will be difficult to take FCRA.

It will be difficult to get FCRA if there is a foreign member in the trust.

Can the members of the association take a salary?

Yes, you can take it.

Yes, you can take it.

Can't take There is a provision to charge a consultancy fee or prescribed fee in a project.


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