{"id":118623,"date":"2023-09-26T09:54:14","date_gmt":"2023-09-26T04:24:14","guid":{"rendered":"https:\/\/legalwindow.in\/?p=118623"},"modified":"2023-10-05T12:21:28","modified_gmt":"2023-10-05T06:51:28","slug":"difference-between-trust-section-8-company","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/difference-between-trust-section-8-company\/","title":{"rendered":"Understand the difference between Trust, Society and Section 8 Company"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-118645 size-full\" title=\"Difference between Trust Section 8 Company and Society\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/legal-window-content-image-1-3.png\" alt=\"Difference between Trust Section 8 Company and Society\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/legal-window-content-image-1-3.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/legal-window-content-image-1-3-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/legal-window-content-image-1-3-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/legal-window-content-image-1-3-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/legal-window-content-image-1-3-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the charitable realm, there are three distinctive organization structures Trusts, Societies, and Section 8 Companies. Although these organizations have shared the common goal of societal welfare. However, these organizations have distinctive management structures, operational work, and <a href=\"https:\/\/legalwindow.in\/are-you-planning-to-settle-in-abroad-tips-to-manage-your-finances\/\" target=\"_blank\" rel=\"noopener\">legal frameworks<\/a>. In the current article, we will explore the key Difference between Trust &amp; Section 8 Company &amp; Societies<\/span><b>.\u00a0<\/b><\/p>\n<p style=\"text-align: justify;\"><b>Table of Content<\/b><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<ul style=\"text-align: justify;\">\n<li><a href=\"#meaning\"><span style=\"font-weight: 400;\">Meaning of Trust, Society, and Section 8 Company<\/span><\/a><\/li>\n<li><a href=\"#difference\">Difference between Trust, Society, and Section 8 Company<\/a><\/li>\n<li><a href=\"#final\"><span style=\"font-weight: 400;\">Final Words<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<h2 id=\"meaning\" style=\"text-align: justify;\"><b>Meaning of Society and Section 8 Company or Trust<\/b><\/h2>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Here is general overview of the Society and <\/span><b>Section 8 Company or Trust <\/b><span style=\"font-weight: 400;\">explains herein:<\/span><\/p>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><b>Society: <\/b><span style=\"font-weight: 400;\">It is an association created by a group of persons with common purposes. Such as education; promoting culture, scientific, charitable, literary or social activities. Societies are formed under the provisions of the Societies Registration Act,1860. It provides the provisions related to its formation, functions, and registration of the society.\u00a0<\/span><\/p>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The society is operated through a structured management system, which is governed by an executive committee elected by the members. The activities and operations of a society are mainly given by its bylaws. That provides the governance framework, rules for decision-making, the company\u2019s goals, and membership criteria.\u00a0<\/span><\/p>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><b>Section 8 Companies: <\/b><span style=\"font-weight: 400;\">It is also known as a Section 8 non-profit company. A section 8 company is a legal framework provided as per provisions of the Companies Act, 2013. It is for encouraging and promoting certain activities such as scientific, artistic, educational, charitable, religious, or social welfare. The primary motive of this company is to facilitate performances, which contribute towards the betterment of society and the general public.\u00a0<\/span><\/p>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><b>Trust: <\/b><span style=\"font-weight: 400;\">It is a legal entity in which a person (who is known as a Trustee) holds and manages all assets for the well-being of another individual or group of individuals (those are known as Beneficiaries). A person who makes the trust is known as the \u201cgrantor\u201d. Trusts have been set up for several purposes such as asset protection, estate planning, charitable giving, etc.\u00a0<\/span><\/p>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Trusts can take any form; each has its features and benefits like charitable trusts, revocable living trusts, testamentary trusts, and irrevocable trusts. Trusts provide separate legal ownership and managing assets from beneficial ownership, which can help to offer benefits. Such as Privacy, tax planning, and structured distribution of assets over time.<\/span><\/p>\n<\/div>\n<div>\n<h2 id=\"difference\" style=\"text-align: justify;\"><b>Difference between Trust, Society, and Section 8 Company<\/b><\/h2>\n<\/div>\n<div>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Here represents the tabular form of <\/span><b>difference between Trust, Society and Section 8 Company<\/b><span style=\"font-weight: 400;\"> are as:<\/span><\/p>\n<\/div>\n<div>\n<table>\n<tbody>\n<tr>\n<td><b>S. No.<\/b><\/td>\n<td><b>Particulars<\/b><\/td>\n<td><b>Trust\u00a0<\/b><\/td>\n<td><b>Society<\/b><\/td>\n<td><b>Section 8 Company<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>1.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Formation\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Need a trust deed<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Need rules &amp; regulations and a memorandum\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Needs a MOA &amp; AOA<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>2.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Primary Purpose<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Religious, educational, charitable, etc.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Educational, cultural, social, etc.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Philanthropic, educational, Charitable.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>3.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Governing Bodies<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Trustees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Managing Committee<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Board of Directors<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>4.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Governing Laws<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The Indian Trusts Act, 1882<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The Societies Registration Act, 1860<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The Companies Act, 2013<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>5.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Assets Ownership<\/span><\/td>\n<td><span style=\"font-weight: 400;\">In the name of trustees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">On society\u2019s name<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Name of the Company<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>6.\u00a0<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Registration<\/span><\/td>\n<td><span style=\"font-weight: 400;\">It must be registered with local authorities<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Registrar of Societies<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Need a license from the <\/span><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/contact-us\/roc.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">RoC<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><b>7.\u00a0<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Benefit of tax<\/span><\/td>\n<td><span style=\"font-weight: 400;\">They are eligible for tax exemptions as per section 11 of the Income Tax Act, 1961<\/span><\/td>\n<td><span style=\"font-weight: 400;\">It is eligible for tax exemptions as per section 12A of the Income Tax Act, 1961<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Eligible for tax exemptions as per section 12A of the Act, 1961<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>8.\u00a0<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Compliance needs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">They are flexible in operations<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Needs regular meetings, annual reports, and accounts<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Compliance as per the Companies Act, 2013 like <\/span><b>income tax filings<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>9.\u00a0<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Liability of members\/ directors\/ trustees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Trustees Limited liability<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Members limited liability<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Limited liability of members<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>10.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Dissolution<\/span><\/td>\n<td><span style=\"font-weight: 400;\">It can be dissolved according to the trust deed<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Dissolved as per rules and regulations<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Dissolved according to the provisions of the Companies Act, 2013<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<h2><a href=\"https:\/\/legalwindow.in\/section-8-company-npo\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-118731\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Get-Section-8-Registration-from-Expert.png\" alt=\"\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-Section-8-Registration-from-Expert.png 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-Section-8-Registration-from-Expert-600x120.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-Section-8-Registration-from-Expert-300x60.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Get-Section-8-Registration-from-Expert-768x154.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/h2>\n<h2 id=\"final\" style=\"text-align: justify;\"><b>Final Words<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In conclusion, the article has provided the finest understanding of the three different charitable institutions. In which, one can select for the well-being of the society or general public. The selection can be done with your mission, and make sure to create positive change. These three different charitable institutions are equally important to each other. This entire legal framework provides its distinct benefits and limitations. The selection depends on the particular goals, governance, and activities of your company.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the charitable realm, there are three distinctive organization structures Trusts, Societies, and Section 8 Companies. Although these organizations have shared the common goal of societal welfare. However,&hellip;<\/p>\n","protected":false},"author":5,"featured_media":118646,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-118623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup-registration"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Difference between Trust &amp; Section 8 Company&#187; Legal Window<\/title>\n<meta name=\"description\" content=\"Difference between Trust &amp; Section 8 Company &amp; Society. 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A section 8 company is a legal framework provided as per provisions of the Companies.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalwindow.in\/blog\/difference-between-trust-section-8-company\/","og_locale":"en_US","og_type":"article","og_title":"Difference between Trust & Section 8 Company&#187; Legal Window","og_description":"Difference between Trust & Section 8 Company & Society. 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