Database for Indian Rhino
Comprehensive Test Ban Treaty Organization
MANAV
FCRA license
Rules/ Procedures |
Society |
Trust |
Section 8 Company |
Purpose |
Entities which are generally associated with promotion of literature, science, or the fine arts, or for the diffusion of useful knowledge, or for charitable purposes; |
A trust is usually floated with a property involved, especially in terms of land and building. It can be a public charitable entity for the benefit of general public (or) A private trust for the benefit of closed groups like relatives, friends. |
A company (without the addition to its name to the word “limited”) with the objective of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; |
Governing Legislation |
|
(In the absence of state legislation, it is governed by the Trust Act) |
Indian Companies Act, 2013.
It can enjoy all the privileges and be subject to all the obligations of limited companies. |
Conditions |
Needs a minimum of 7 members to form a society.
|
A trust deed with aims and objectives of trust should be signed by settlor and trustee. Settlor – A person who transfer his/her property to the trust. |
Needs a minimum of 3 trustees.
|
Eligibility of Members |
Members of the same family cannot be members |
No restriction on family members. |
No restriction on family members. |
Registering Authority |
Registrar or Deputy Reg. of societies of concerned State/ Charity Commissioner |
Sub-Registrar of Registration/Charity commissioner |
Registrar of company |
Income |
It receives income from subscription, gifts, grants-in-aid and donations from the members and the general public. The income should not be distributed among its members. Upon dissolution, all its income/debts shall be given to other society, which is determined by voting. |
The trustee has the right to maintain the property, arise income from it and use it for beneficiaries. When it is mentioned in the trust deed, trustee may even have powers to sell the property subject to the charges or free of them. |
Profits from the company should be used for promoting its objectives and should not be paid as dividends to its members. |
Source: The Hindu, The Indian Express