What is the difference between society, trust and section 8 company?

What is the difference between society, trust and section 8 company?

Hey there,

The basic difference between these three are as follows:

Trust

  • Statute/Legislation: Indian Trust Act, 1882 is applicable.
  • Regulating Authority: Deputy Registrar of the relevant area is authorized to regulate and register a Trust.
  • Constitution Document: Trust Deed
  • Stamp Duty: Non-Judicial Stamp duty is required as per the State Stamp Act. The stamp duty can will depend on the value of the Trust property, if any.
  • Members Required: Minimum two persons are required. These persons could be the artificial person created under the law or a foreigner serving in this capacity.

Society

  • Statute/Legislation: Society can be a State level society or a National level society in case of state level society State Acts are applicable, whereas for the societies operating all over India Societies Registration Act, 1860 is applicable.
  • Regulating Authority: Society comes under the jurisdiction of State Divisional Magistrate of a particular area in which society premises is located.
  • Constitution Document: Memorandum of Association & Rules and Regulations
  • Stamp Duty: No Stamp duty is required.
  • Members Required: Minimum seven persons are required for State level society. Eight members from different states are required to form a national level society, these persons should be the individuals only.

Section 8 Company

  • Statute/Legislation: Section 8 Companies are governed by Indian Companies Act.
  • Regulating Authority: Registrar of the Companies of the State in which the Section 8 companies are registered office is located will have the authority to register it.
  • Constitution Document: Memorandum & Article of Association
  • Stamp Duty: No Stamp duty is required.
  • Members Required: Minimum two persons are required for private limited company. Seven persons for a public limited company.

Hope it will help

Thanks


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