{"id":86,"date":"2025-05-16T17:29:02","date_gmt":"2025-05-16T17:29:02","guid":{"rendered":"https:\/\/www.mylegalbusiness.com\/blog\/?p=86"},"modified":"2025-08-04T09:03:03","modified_gmt":"2025-08-04T09:03:03","slug":"difference-between-trust-society-and-section-8-company","status":"publish","type":"post","link":"https:\/\/www.mylegalbusiness.com\/blog\/difference-between-trust-society-and-section-8-company\/","title":{"rendered":"Difference Between Trust, Society and Section 8 Company"},"content":{"rendered":"\n

If you’re planning to set up a non-profit organization in India, it’s crucial to know the difference between trust, society and section 8 companies<\/strong>. These three entities serve similar purposes but differ in legal structure, formation process, and compliance requirements.<\/p>\n\n\n\n

A Trust<\/strong> is usually created by families or individuals to do charitable work and is governed by the Indian Trusts Act.<\/p>\n\n\n\n

A Society<\/strong> is made by a group of people who want to work together for causes like education, art, or health, and is registered under the Societies Registration Act.<\/p>\n\n\n\n

A Section 8 Company<\/strong><\/a>, also called as a Non-profit Company, can be incorporated under the provisions of the Companies Act, 2013. It is often chosen by larger NGOs and organizations that want better funding options, and strong legal status. Each option has its own process for registration, management, and compliance.<\/p>\n\n\n\n

 This article will help you understand the differences so you can choose the best type as per your goals and needs.<\/p>\n\n\n\n

TRUST<\/strong><\/p>\n\n\n\n

According to Section 3 of the Indian Trust Act, 1882, a trust is defined as an obligation attached to the ownership of property<\/strong>, arising from a confidence placed in and accepted by the owner, or declared and accepted by him, for the benefit of another person\u2014or for the benefit of both another person and the owner.<\/p>\n\n\n\n

In simpler terms, a trust<\/strong> involves the transfer of property by one person, known as the settlor<\/strong>, to another person called the trustee<\/strong>. The trustee holds and manages this property for the benefit of a third party, referred to as the beneficiary<\/strong>.<\/p>\n\n\n\n

To create a valid trust, the settlor must legally transfer ownership of the assets<\/strong> to the trustee, who is then responsible for administering the trust according to its terms and for the benefit of the beneficiary.<\/p>\n\n\n\n

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