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    S. No. Basis of Difference Trust Society Section 8 Company
    1. Governed under which Legislation Indian Trust Act, 1882  Societies Registration Act, 1860 The Companies Act 2013
    2. Regulatory Authority Registrar of the relevant area is authorized to regulate and register a Trust. State Divisional Magistrate of a particular area in which society premises is located is authorized to regulate. Registrar of the Companies of the State in which the Section 8 companies registered office is located will have the authority to register and regulate it.
    3. Constitution Document Trust Deed Memorandum of Association & Rules and Regulations/ Bye Laws Memorandum of Association & Article of Association
    4. Stamp Duty

    Required

    The value of stamp duty is depending upon the value of the Trust property.

    Not required Not required
    5. Members Required Minimum two persons  Minimum seven persons Minimum two persons are required for a private limited company and Seven persons for a public limited company
    6. Management Trust is managed by their Trustee  Societies are managed by members of Governing body. Board of Directors is solely responsible for the management.
    7. Ownership Trustees are the owner of the Trust properties. Society itself is the owner of the society properties. Company is the absolute owner of the property.
    8. Dissolution Generally, public trust cannot be dissolved. A society may be dissolved with the approval of 3/5th members present and voting in the general meeting of the society. A Section 8 company may be winded up as per the provisions prescribed under the Companies Act.
    9. Annual Compliance Not required Within 14 Days from the next day of the AGM file updated list of governing body with the registrar of the societies as prescribed in Societies Registration Act. Required to file its annual return and annual accounts within specified time with the Registrar of companies.
    10. Transparency in working Low Low Working is highly transparent as everything is into public domain.
    11. Grant of subsidy by the government Moderately preferred Moderately preferred Most preferred
    12. Foreign Contribution Regulation Act, (FCRA) registration Moderately preferred Moderately preferred Most preferred
    13. Change in the board of directors/ trustees Members It’s very easy in case of a Trust if the testator is there. Society functions through the governing council and any change are to be as per the constitution documents. Easy
    14. Time Period involved in registration/ formation 4-5 working days 10-15 working days 20-25 working days