Trust and Society Registration

Trusts and societies are non-profit legal structures commonly used by NGOs, charitable organisations, religious bodies, and educational institutions in India. A trust is registered under the Indian Trusts Act, 1882 (private trusts) or state public trust acts. A society is registered under the Societies Registration Act, 1860.

What Is a Trust?

A trust is a legal arrangement where one party (the trustor or settlor) transfers property to another party (the trustee) to manage for the benefit of a third party (the beneficiaries) or for a specified charitable purpose.

**Key components:**
– **Author/Settlor**: person creating the trust
– **Trustee(s)**: manages the trust assets
– **Beneficiaries**: those who benefit (can be the public for charitable trusts)
– **Trust deed**: the governing document defining objectives and management rules

**Registration**: Under the Indian Registration Act; state-specific procedures apply.

What Is a Society?

A society is a group of individuals associated to promote a charitable, scientific, literary, or other non-profit objective.

Registered under the **Societies Registration Act, 1860** with the Registrar of Societies (state-level authority).

**Minimum members**: 7 persons for state societies; 8 states represented for national societies
**Governing document**: Memorandum of Association and Rules and Regulations

Trust vs Society vs Section 8 Company

| Feature | Trust | Society | Section 8 Company |
|———|——-|———|——————|
| Governing law | Trusts Act / State Acts | Societies Registration Act | Companies Act, 2013 |
| Minimum members | 2 (trustees) | 7 | 2 |
| Governance | Trustees | Managing Committee | Board of Directors |
| Amendment | Difficult | By members | With MCA approval |

Tax Registrations for Trusts and Societies

Both must obtain:
– **Section 12A/12AB**: income tax exemption for charitable activities
– **Section 80G**: to enable donors to claim deductions on donations

Key Takeaways

– Trusts are created by a trust deed and managed by trustees; registered under state trust or the Indian Trusts Act
– Societies require minimum 7 members and are registered under the Societies Registration Act, 1860
– Both need Section 12A and 80G registrations for income tax benefits and donor deductions
– Section 8 Companies offer more credibility and governance structure but require more compliance
– All three structures are used for charitable, educational, religious, and social welfare activities