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.