Registration of Trusts and Societies in India
Trusts and Societies are two popular types of non-profit organizations in India that are founded to advance educational, religious, cultural, social, or philanthropic goals. Although both are nonprofit organizations, their registration procedures are unique and they are subject to different laws.
What is a Trust?
A Trust is like a special promise. Someone (called the author or settlor) gives their things, like money or property, to a group of people (called trustees) to take care of. These trustees then use or share the stuff to help other people (called beneficiaries). Trusts are often made to help charities, churches, or schools.
Trusts in India are primarily regulated by two sets of laws – the Indian Trusts Act, 1882, which governs private trusts, and state-specific Public Trust Acts, which oversee public charitable trusts. For instance, the states of Maharashtra and Gujarat have enacted their own Trust Acts to manage such entities within their respective jurisdictions.
The Trust Registration Procedure:
- Write a Trust Deed – The goals, trustees, management, and assets of the trust are outlined in this legal document.
- Notarization and Stamp Duty — As required by state law, the trust document must be signed in front of witnesses and executed on stamp paper.
- Submitting to the Registrar – The deed, along with the necessary documentation (ID proof, address proof, photos), is given to the neighborhood Sub-Registrar.
- Certificate Issuance: A registration certificate is granted after verification.
Public charitable trusts must register to obtain legal status and tax advantages, but private trusts can choose to do so.
What is a society?
A society is a membership organization created to support charitable endeavors such as education, art, culture, religion, and sports. Typically, a governing body or managing committee, chosen by the members, oversees a society’s operations. Compared to trusts, societies have a more democratic structure, featuring elections and member involvement.
In India, societies are regulated by the Societies Registration Act of 1860, along with any state-specific amendments. Each state has a Registrar of Societies responsible for the registration and regulation of these organizations.
The registration procedure for societies is as follows:
- Create a Governing Body – Minimum of 7 members (may include foreigners).
- Draft Memorandum of Association (MOA) – The name, goals, list of members, and laws and guidelines are all included here.
- Prepare Documents – affidavit, MOA, rules, ID/address proofs of members, and address proof of society office.
- Apply to the Registrar of Societies – The Registrar of Societies in the state in question receives the application.
- Certificate of Registration – A registration certificate is granted if all paperwork is in order.
Legally recognized societies have the ability to enter into contracts, own property, and initiate legal proceedings
Key Differences Between Trusts and Societies
| Feature | Trust | Society |
|---|---|---|
| Governing Law | Indian Trusts Act / State Laws | Societies Registration Act, 1860 |
| Members Required | Minimum 2 trustees | Minimum 7 members |
| Registration | With Sub-Registrar | With Registrar of Societies |
| Management | Trustees | Governing body (President, Secretary, etc.) |