Non-Governmental organization like Trust , Societies and Section-8 companies registered with the objective of betterment of our society.
SECTION 8
A section 8 company registered under the companies act 2013 is an organisation incorporated for promoting commerce, art , science , education, research, social welfare, religion, charity, or any such other object , provided the profit , if any , or other income is applied for promoting only the objects of the company.
TRUST
Trust is an entity registred under the Indian Trust Act, 1882, They are created to focus on the development of science, literature and other noble causes.
SOCIETY
A society is an organized group of individuals with a common purpose, such as a charitable, educational, cultural, religious, or recreational goal. Societies are typically formed to promote a specific cause or to advance the interests of their members. It’s registered under the society act of 1860 or on the particular state society act .
NGO COMPARISONS
| SECTION-8 | TRUST | SOCIETY | |
|---|---|---|---|
|
Legal Status |
Registered as a company under the Companies Act, 2013. |
Registered as a trust under the Indian Trusts Act, 1882. |
Registered as a society under the Societies Registration Act, 1860. |
|
Registration process |
Requires registration with the Registrar of Companies (RoC). |
Requires creation of a trust deed and registration with the relevant state authority (such as the office of the Registrar or Sub-Registrar). |
Requires creation of a memorandum of association and bylaws, followed by registration with the Registrar of Societies or an equivalent authority at the state level. |
|
Governing Documents |
Memorandum and Articles of Association. |
Trust deed |
Memorandum of association and bylaws. |
|
Governing Body |
Managed by a Board of Directors. |
Managed by trustees appointed in the trust deed. |
Managed by a governing council or managing committee elected or appointed as per the bylaws. |
|
Liability |
Limited liability of members. |
Trustees have fiduciary duties and potential liability for breach of trust. |
Members have limited liability as per the bylaws of the society. |
|
Objectives |
Must be formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object. |
Can be formed for various purposes including charitable, religious, educational, and social welfare activities. |
Can be formed for promoting literature, science, fine arts, charitable activities, or any other useful purpose. |
|
Financial Reporting |
Required to maintain financial records and file annual financial statements with the RoC. |
Not mandated by law but may be required for transparency and accountability. |
Generally required to maintain financial records and submit annual reports to the registering authority. |