Trust: (Trust under Indian Trusts Act, 1882)
one among the ways during which an NGO are often registered is Trust or more commonly called public trust. Trust may be a legal entity created by the “trustor” or “settlor” who transfers the assets to the second party or “trustee” for the advantage of the third party or “beneficiary”. Trusts are formed to assist and support the deprived sections of the society.
Societies: (Society under Societies Registration Act 1860)
A society is an entity which will be created by a bunch of people united in their cause for promoting science, arts, literature, welfare and useful information. additionally, societies work for creating military orphan funds, maintaining public museum and libraries.
Section 8 Companies: (Section 8 Company under Companies Act, 2013)
a section 8 company is analogous to a trust and society. The objectives of a neighbourhood 8 Companies are to market arts, science, commerce, sports, welfare, religion, charity and environmental protection. they’re registered under the businesses Act, 2013 for charitable purpose. They need better credibility among government bodies, donors and other stakeholders. Also, there’s no requirement of minimum paid-up capital just in case of a section 8 company.