| Description | Society | Trust | Company |
|---|---|---|---|
| Act under which it is registered | The Societies Registration Act, 1860 | The Registration Act, 1908 | The Companies Act, 1956 |
| Objects | Charitable, Literary, Scientific etc | Charitable, socially beneficial | Non profit activities |
| Main Documents | Memorandum and Articles of Association, Rules and Regulations (Bylaws) | Trust deed | Memorandum and Articles of Association |
| Authority with whom to be registered | Registrar of Societies of the concerned state | Sub registrar of Registration at District level | Registrar of Societies of the concerned state |
| Ease of Formation | Relatively simple, it may take 12 months | Very simple, it may take a week | Relatively complicated, it may take 36 months |
| Approval of Name | Separate application not required. Name is generally granted if available | Not required | Separate application is required to be made. There are strict guidelines for approval of name. |
| Stamp Duty | No stamp paper required for Memorandum & Articles of Association | Trust required to be executed on non judicial stamp paper (valued at 4% of the trust property) | No stamp paper required for Memorandum & Articles of Association |
| Minimum no. of subscribers/trustees required | 7(Seven) | 2 (Two) | 2 (Two) |
| Name | Comparatively Simple | Comparatively Simple | Prior approval required from the Registrar of Companies in the relevant state/ U.T |
| Cost of Registration | Less thanRs.10,000/ | Less than Rs.10,000/ | Less than Rs.25,000/ |
| Governing Structure | Two tier structure a) General body b) Board of Directors | Single tier structure the trustees are the ultimate authority | Two tier structure a) General body b) Board of Directors |
| Voting Rights | All members have equal rights | All trustees have equal rights | The voting rights may vary on the basis of share holding. This provision can be used for control purposes |
| Types of activities allowed | Not much of a difference between these 3 forms. Any kind of charitable & public utility activity can be undertaken | Same | Same |
| Annual Documents to be filed | The Act requires a list of managing body to be filed every year. But different states have different requirements for filling additional documents every year | No documents are filed every year. | Annual return and audited required to be filed every year. |
| General & Board meetings | General & Board meetings are required to be held as prescribed in the bye law of the society | No provisions are laid down. Adequate rules should be framed in the trust deed, in this regard. | Specific provisions have been laid down. At least 1 Annual General Meeting and Board meetings only once in six months but should have held four meetings in a year. |
| Transfer of Membership | Membership is not transferable | Membership is not transferable | Membership can be transferred. Restriction on transfer can also be placed. |
| Payment to functionaries | Permitted as per general body approval | Provision in the trust deed should be there for any such payment | Permitted as the general body approval |
| Recurring expenditure | The statutory compliances required are minimal. Consequently recurring expenditure are also negligible | No statutory recurring expenditure | Annual returns & Balance Sheet are filed along with certain fees. Again the quantum ofexpenditure is not significant. |
| Area of operation | Can operate throughout India even if registered in one particular state. No separate registration is required for operating in another state. | Can operate throughout India | Can operate throughout India as the registration is granted by the Central Government |
| Income Tax Registration | Compulsory within 12 months of registration | Same | Same |
| Foreign Contribution Regulation Act, 2010 Registration or Prior Permission | Compulsory for receiving foreign funds. | Same | Same |
| Labour & other relevant laws | To be complied as per applicability. | Same | Same |
| Foreigner as a member/trustee | Possible | Same | Same |
| Threat in having foreigner on board | Difficulties may be faced in getting Foreign Contribution Regulation Act, 2010 registration. No other threat perceived. | Same | Same |
