Society, Trust, and Section 8 Company are three common forms of non-profit organizations in India. Each of these entities has distinct characteristics and purposes. Here are the key differences between them:

   – Formation:

A society is formed under the Societies Registration Act, 1860

 – Management:

Managed by a governing body or managing committee.

Objective:

These are typically established for the promotion of various charitable, religious, educational, cultural, or social activities.

– Registration:

It must be registered with the Registrar of Societies in the respective state.

   – Ownership:

A society does not have owners; it is managed by its members.

   – Transfer of Assets:

In the event of dissolution, the assets of a society are transferred to another society with similar objectives.

   – Profit:

They are non-profit organizations, and their funds should be used for their objectives.

Read More Article :- Gst Registration and Return in Palwal

   – Formation:

A trust is created through a trust deed, which outlines the objectives, trustees, and management of the trust.

-Management:

Managed by trustees who are appointed as per the trust deed.

-Objective:

It can be established for a variety of purposes, including charitable, religious, educational, or public welfare activities.

– Registration:

It do not require mandatory registration, but registration can provide certain legal benefits.

   – Ownership:

They do not have owners; they are managed by trustees.

   – Transfer of Assets:

In the event of dissolution, the assets of a trust are typically transferred to another trust with similar objectives.

   – Profit:

These are non-profit entities, and their funds must be used for their stated purposes.

   – Formation:

 These are incorporated as companies under the Companies Act, 2013, with the primary objective of promoting charitable, scientific, or educational activities.

   – Management:

Section 8 companies are managed by a board of directors.

   – Objective:

These companies must have a charitable or non-profit objective, and their profits, if any, are plowed back into their activities.

   – Registration:

It must obtain a license from the Central Government, and they are subject to the regulations of the Companies Act.

   – Ownership:

They do not have owners; they are governed by a board of directors.

   – Transfer of Assets:

In the event of dissolution, the assets of a Section 8 company must be transferred to another Section 8 company or to another non-profit entity with similar objectives.

In summary, societies, trusts, and Section 8 companies are all established for non-profit purposes, but they differ in their legal structures, registration requirements, and the extent of government regulation. The choice of the most suitable form depends on the specific objectives and activities of the organization, as well as the applicable legal framework in India. It’s advisable to consult with legal professionals or experts when deciding on the appropriate form for your non-profit entity.