Both societies and trusts are popular forms of Non-Governmental Organizations (NGOs) in India.
A society is an association of persons who come together for a common charitable, social, or cultural purpose. A society can be registered under the Societies Registration Act, 1860, and is governed by a managing committee elected by the members. The managing committee is responsible for the day-to-day functioning of the society and for carrying out its objectives. Societies are preferred by organizations that have a large number of members and require a more democratic form of governance.
On the other hand, a trust is a legal arrangement in which a person (called a settlor) transfers property to another person (called a trustee) for the benefit of a third person (called a beneficiary). A trust can be created for a variety of purposes, including charitable, religious, or educational purposes. A trust can be registered under the Indian Trusts Act, 1882, and is governed by the trustees who are appointed to manage and administer the trust property. Trusts are preferred by organizations that have a smaller number of members and require a more centralized form of governance.
Both societies and trusts are eligible for tax exemptions under the Income Tax Act, 1961, provided they are registered with the appropriate authorities and meet the requirements for tax exemption. The choice between a society or a trust as the form of an NGO depends on various factors such as the size of the organization, its purpose, and the preferred form of governance. It is important to seek professional advice before deciding on the most suitable form for your organization.
In India, both societies and trusts can be registered as NGOs. The process for registering a society and a trust is different. Here is an overview of the registration process for societies and trusts:
SOCIETY REGISTRATION
To register a society, you need to follow these steps:
- Choose a name for the society and get it approved by the Registrar of Societies in the state where the society will be located.
- Prepare a memorandum of association and rules and regulations that will govern the society.
- Get the memorandum of association and rules and regulations signed by at least seven members of the society.
- Submit the memorandum of association, rules and regulations, and other required documents to the Registrar of Societies along with the registration fee.
- Once the Registrar of Societies is satisfied with the documents, they will issue a certificate of registration.
TRUST REGISTRATION
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To register a trust, you need to follow these steps:
- Choose a name for the trust and get it approved by the Registrar of Trusts in the state where the trust will be located.
- Prepare a trust deed that will govern the trust.
- Get the trust deed signed by the settlor and the trustees.
- Register the trust deed with the Registrar of Trusts in the state where the trust will be located.
- Once the Registrar of Trusts is satisfied with the trust deed, they will issue a certificate of registration.
It is important to note that the registration process and requirements may vary slightly from state to state, and it is advisable to seek professional advice before starting the registration process. Also, both societies and trusts need to comply with various legal and regulatory requirements after registration to maintain their legal status as an NGO.