Difference between Society and Trust
One of the primary differences between the two is that a trust is created when an asset/ property whose ownership is vested in another person is taken care of and administered for another person’s benefit (beneficiaries can be the public as a whole or an individual). A society is created by a common intention for furthering a common objective/ cause, which brings together people who have a common purpose/ objective to join forces.
|Governing Law||Trusts created under the Indian Trusts Act, 1882 and Trusts created under the laws of respective states||1860 Act on the Registration of Societies|
|Purpose/ Objective||The trustees manage the asset or property for another’s benefit (public or private).
|Bringing together a common intention/object/cause, such as for literary, music, or artistic purposes
|Forming and registration time||It takes about a week||This is a difficult process that takes 1-2 months|
|Documents for registration||Stamped paper or a will with a trust deed||Rules and regulations are not required on stamp paper in the Memorandum of Association|
|Authority responsible for registration/jurisdiction||Charity Commissioner/Deputy Registrar||Societies Registrar|
|Persons required at a minimum||Two is the minimum
There is no upper limit to the maximum
|The minimum number of members should be seven (8 in the case of a national society).
No upper limit on maximum
|Organizational management||A trustee/board of trustees||Committee of the Board of Directors/Executive Committee|
|Property||Trustees’ property||The society holds the event|
|Family members||This restriction does not apply.||It is impossible for family members to be members of society.|
|Trustee/Member Term||Unless otherwise specified in the trust deed, trustees typically hold their positions for a lifetime.||In addition to their limited term of office, members of the governing or executive committee are eligible for re-election|
|Operational Area||India-wide operation||When a society registration in a particular state, it can only operate within that state, while when it is registered as a national society, it can operate nationwide.|
|Documents to be filed||A company is not required to submit annual reports or any other documents to any authority. However, it must maintain its account statements, minutes of meetings, board resolutions and other relevant documents.||As per Section 4 of the Societies Registration Act, 1860, the Society must file a list of the names, addresses and occupations of its Governor, council, director, committee, or any other governing body that manages the Society with the Registrar of Joint Stock Companies.|
|Membership/Trusteeship Transfer||It does not exist.||It cannot be transferred|
|Trustees/members’ remuneration||According to the trust deed.||The Executive Committee can approve remuneration for members.|
|Final thoughts||It is generally impossible to revoke a trust||The organization can be wound up if 3/5ths of the total membership desire it|