What is a Society / Trust?

A Society or Trust is a legal entity formed for charitable, educational, religious, or social purposes. These organizations operate on a non-profit basis and are governed by specific Acts such as the Societies Registration Act, 1860 or the Indian Trusts Act, 1882.

  • Formed for non-profit purposes like education, charity, or public welfare
  • Can receive donations and apply for government grants
  • Managed by a governing body or board of trustees
  • Must maintain transparency and file annual reports

Societies and Trusts play a key role in nation-building by addressing social and humanitarian needs.

Types of Societies / Trusts

Based on Purpose:

1. Charitable Trust

Formed for social welfare, education, or relief to the poor. Enjoys tax exemptions under Section 12A/80G of the Income Tax Act.

2. Religious Trust

Created for managing religious institutions, temples, or spiritual activities. May be public or private in nature.

3. Educational Society

Focuses on promoting education by managing schools, colleges, or training centers.

4. Cultural Society

Engaged in promotion of art, culture, and heritage preservation through various initiatives.

Based on Structure:

1. Public Trust

Created for the benefit of the general public; must be registered under relevant state laws.

2. Private Trust

Formed for the benefit of specific individuals or a closed group such as family members.

3. Registered Society

Formed under the Societies Registration Act, 1860. Operates democratically through elected members.

4. Section 8 Company

Registered under the Companies Act for charitable purposes. Enjoys corporate structure and tax benefits.

Difference Between Trust, Society, and Section 8 Company:
  • Trust: Formed by a trust deed; governed by Indian Trusts Act or relevant state acts.
  • Society: Requires minimum 7 members; governed by Societies Registration Act, 1860.
  • Section 8 Company: Corporate structure; more compliance but enjoys better recognition and tax benefits.

Types of Societies / Trusts

Based on Purpose:

1. Charitable Trust

Formed for social welfare, education, or relief to the poor. Enjoys tax exemptions under Section 12A/80G of the Income Tax Act.

2. Religious Trust

Created for managing religious institutions, temples, or spiritual activities. May be public or private in nature.

3. Educational Society

Focuses on promoting education by managing schools, colleges, or training centers.

4. Cultural Society

Engaged in promotion of art, culture, and heritage preservation through various initiatives.

Based on Structure:

1. Public Trust

Created for the benefit of the general public; must be registered under relevant state laws.

2. Private Trust

Formed for the benefit of specific individuals or a closed group such as family members.

3. Registered Society

Formed under the Societies Registration Act, 1860. Operates democratically through elected members.

4. Section 8 Company

Registered under the Companies Act for charitable purposes. Enjoys corporate structure and tax benefits.

Difference Between Trust, Society, and Section 8 Company:
  • Trust: Formed by a trust deed; governed by Indian Trusts Act or relevant state acts.
  • Society: Requires minimum 7 members; governed by Societies Registration Act, 1860.
  • Section 8 Company: Corporate structure; more compliance but enjoys better recognition and tax benefits.

Frequently Asked Questions (Society / Trust vs Section 8 Company)

No, they are different legal structures. While all serve charitable or non-profit objectives, they differ in formation, legal status, compliance requirements, and governance.

It depends on your objectives. Section 8 Companies are highly credible and suitable for large-scale operations. Trusts and Societies are simpler to form and manage at a smaller scale.

Yes, but they must be registered under the Foreign Contribution (Regulation) Act (FCRA) to legally receive foreign donations in India.

Yes, Section 8 Companies can generate income, but the profits must be used only for promoting charitable objectives and cannot be distributed as dividends.

Yes, registration is required to obtain legal status, avail tax benefits, open a bank account, and operate transparently.