Basis | Trust | Society | Section 8 Company |
---|---|---|---|
How it is Governed | Indian Trust Act, 1882 | Societies Registration Act 1860, which is an all-India Act | Indian Companies Act, 2013. |
Comes Under Whose Jurisdiction | Deputy Registrar/Charity commissioner of the relevant are | Registrar of societies (charity commissioner in Maharashtra). | Regional Director & Registrar of Companies of concerned state. |
What Is Main Document Required | Trust Deed | MOA and Rules and Regulations | MOA & AOA |
Whether Stamp Duty Is Charged | Trust deed to be executed on non-judicial stamp paper, vary from state to state | No stamp duty required for MOA and Rules and Regulations | No Stamp Duty Required |
Minimum Members Required | 2 | 7 for local and 8 for national level | 2 |
Managed By Whom | Trustees or Board of Trustees | Governing Council or Managing Committee | Board of Directors |
Legal Title Held By Whom | Trustees holds legal title of property | Properties held in the name of Society | Properties held in the name of Society |
Can It Be Dissolved | Generally No | Can be dissolved with an approval of 3/5th members | Can be dissolved |
What If It Becomes Ineffective/dissolved | If objects are not met, objects near to objects of trust will be added in deed | On Dissolution, funds, and property not transferred to members Society but to some other similar society | On Dissolution, funds, and property not transferred to members of Co. but to some other similar section 8 Co. |
Does Annual Return To Be Filed | Not required | Required to be filed with Registrar | Required to be filed with ROC |
Is an online Facility Available? | Not available | Not available | Available |
Level Of Difficulty Of Compliance And Time Involved | Time-consuming and Difficult | Time consuming and Difficult | Easy, Time saving and transparent procedure |
Time Taken For Registration | 10-15 working days | 30-40 working days | 60-70 working days |
Cost Involved | Low | Medium | High |
Can 12a And 80 G Be Taken | Same | Yes | Yes |
Whether Preferred For Govt. Subsidy/grant | Low preference | Low preference | High preference |
Whether Preferred For Fcra Regn | Low preference | Low preference | High preference |
Transparency In Work | Less | Less | Very High because everything is online |
Difficulty In Changing Trustees Or Board | Easy | Complex | Easy |
Difficulty In Changing Registered Office | Difficult | Difficult | Easy |
Any person above 18 years can become a director. Non-residents can also become director of Indian companies.
ID proof and residence proof of all the proposed directors, PAN card is mandatory for Indian nationals. No objection certificate from the owner of registered office or lease agreement must be produced.
Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.
Authorized capital of a Company is the amount of shares a company can issue to its shareholders. Companies have to pay authorized capital fee to the government so as to be able to issue shares. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.
Yes, a foreign national can become director of a private limited company. Atleast one director in a company should be resident Indian.
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
Yes, a partnership firm can be converted into private limited company by following the procedure laid down in Companies Act 2013.
A private limited company must have a minimum of 2 directors while the maximum no. of directors can be upto 15.
DIN is a unique identification number which is allotted to all the directors existing or proposed. DIN can be obtained by filing e-form DIN1 in MCA portal.
Every private limited company must hold a board meeting atleast once in every three months and an Annual general meeting (AGM) every year.
Yes, Companies Act 2013 provides rules for converting a private limited company into a public limited company.