Trust is a special form of organization which emerges out of a will. The will maker exclusively transfers the ownership of a property to be used for a particular purpose. If the purpose is to benefit particular individuals, it becomes a Private Trust and if it concerns some purpose of the common public or the community at large, it is called a Public Trust.
Trusts can be formed
Description | Trust | Society | Section 8 Company |
---|---|---|---|
Statute / Legislation | State Trust Act. | Societies Registration Act. | Companies Act |
Jurisdiction of the Act | Concerned state where it is registered | Concerned state where it is registered | National |
Authority | Charity Commissioner | Registrar of Societies | Registrar of Companies |
Registration | As Trust | As Society | AOA & MOA |
Stamp Duty | Trust Deed to be executed on non-judicial stamp paper of prescribed value. | No stamp paper required MOA (by law) and rules of regulations | As per companies Act |
Authority | Charity Commissioner | Registrar of Societies | Registrar of Companies |
Minimum Person Required | Trustees | Executive Committee | Board of Directors / Management Committee |
Mode of Succession of Board of Management | By Appointment | Elected by Members | Elected by Members |