Posted By admin on December 25, 2013 2 Comments
| BASIS OF DIFFERENCE | SECTION 25 COMPANY | SOCIETY | TRUST |
| BASIC DOCUMENT | Memorandum of AssociationArticles of Association | Memorandum of AssociationArticles of Association with rules & regulations. | Trust Deed – which contains objects of the trust (bye-law) |
| FORMATION | Little Hard | Simple | Easy |
| JURISDICTION | Registrar of Comapnies | Registrar of Societies – (Maharastra Charity Commissioner) | Deputy Registrar / Charity Commisioner |
| LEGISLATION / STATUTE | Indian Companies Act 1956 | Societies Registration Act 1860 | Relavent state Trust Act |
| OBJECTS | Nonprofit Activities | Literary, Charitable, Scientific and resource oriented | Social benefits & Charitable |
| MODIFICATION OF OBJECTS | ComplicatedLegal Procedures | EasyLegal Procedures | Alteration can be undertaken only by the Founder.If the founder is deceased alteration of objects is impossible |
| REQUIRED MEMBERS | Minimum = 7Maximum = No limit | Minimum = 7Maximum = No limit | Minimum = 2Maximum = No limit |
| REGISTRATION | As per Companies Act under Section 25 | As Society with Society Registrar | As Trust with the Registrar. |
| STAMP DUTY | No Stamp paper required for Memorandum of association and articles of association. | No stamp paper required for Memorandum of association, and rules and regulations. | 4% of Trust property Value will be executed in non judicial stamp paper with the registrar |
| NAME | Prior approval required from Registrar of Companies. | Very easy to choose | Very easy to choose |
| MANAGEMENT BOARD | Board of Directors & Management committee | Governing Body | Trustees |
| SUCCESSION IN MANAGEMENT | By Appointment | By Election | By Election |
| MEETINGS | Quite Extensive as per the provision of Company Law | Annual Meeting As per Law. Governing Body meeting as per the rules of Society. | No provisions |
| LEGAL STATUS | Full Legal Status | Limited Legal Status | Limited Legal Status |
| STATUTORY REGULATIONS | Exhaustive | Limited | Nominal |
| MEMBERSHIP TRANSFER | Free or Control as per desire. | Impossible | Impossible |
| MEMBER ADMISSION | General Body or Board Control through issue of Capital. | Governing Body Control | Not applicable |
| DISSOLUTION OR TAKE OVER BY STATE | Very risky and difficult | Possible | Possible |
| PAYMENT TO MEMBERS | As approved by Company & State. | Not restricted | As notified in Trust deed |
In case you need any further information
Contact us at 9818092002
Email : info@companyindia.co.in
The way you have explained everything is so easy to comprehend and making any further decision.
Thank you. My best to you.
Dear Mr Gandhi,
It is good to note that you had liked our article on different NPO in India. In case u need any professional advise, Please revert back to us