A trust is a legal entity, created by one party, with the right to hold the other party. Property of the first party for the benefit of the third party.
Here, the first party refers to the author of the trust or trustor; The other party is known as the trustee, who accepts the offer of the trust and maintains the trustee's property on behalf of the beneficiary (third party). The subject of the trust is known as trust property, and the document in which all the terms and conditions about the trust are written is known as a trust deed.
The trust is governed by the Indian Trusts Act, 1882, which applies to the entire country except for the state of Jammu and Kashmir. Following are the types of trust
Living Trust: Creating confidence by the author when he is alive.
Testamentary Trust: The trust comes into existence, after the author's death.
Revocable Trust: The trust which can be removed or modified by the author is known as Revocable Trust. Such kind of trust becomes irrevocable if the grantor dies.
Irrevocable Trust: A trust that is irrevocable in nature is known as an irrevocable trust.
Documents Required For Trust Registration
1. Photograph of every of Trustee & Settler.
2. Khasra No. & Village of the property to use as an office to see whether or not an equivalent falls into an unauthorized colony list.
3. Signed deed of trust by trustees and settlers.
4. Demand Draft as aforesaid.
5. Signed NOC on Affidavit of Rs. 10 – Stamp Paper & Notarization shall be arranged by us
6. Stamp paper within the name of Trust – Stamp Paper shall be arranged by us
7. Photocopy of the address proof & ID Proof as mentioned aforesaid.
8. Proof of Address of the premises which is employed as office signed by the Owner.
9. Witnesses and settler shall bring their Id Proofs in original also at the time of incorporation
10. PAN and TRust deed.
Society is a group of individuals who are linked together for a common purpose. The purpose may be related to the promotion of any literary, charitable, or scientific work.
Registration of society requires a minimum of seven members who sign (MOA) and then files it to the Registrar. A society is Legally constituted under the Societies Registration Act, 1860.
The memorandum contains all the details related to the name and the object of the society. As well, the memorandum contains the names, addresses, and profession of the governing body and its members. Committee, directors, governors, council, trustees, and others
Documents required for the Society Registration in India:
1. PAN Card
2. The Residence Proof of all the members (Bank Statement, Utility Bill, Driving License, Passport)
3.MOA and AOA
4.A copy of the address proof where the registered office of the society will be located with the NOC from the landlord if any is to be attached.
5.A covering letter
6. All members of the governing body are to be listed with their signatures.
Difference between Trust and Society registration
A trust is an agreement between the party, whereby one party holds an asset for the benefit of another party. Society is a collection of persons, who come together for initiating any literary, charitable purpose or scientific.
Trusts registered under the Indian Trusts Act, 1882 while Societies are incorporated under the Indian Societies Act, 1860.
There can be a minimum of two members in a Trust, whereas there should be a minimum of seven members in society.
The trust deed is the main document of the organization, but in the case of the society, the details are described in the memorandum of association and rules and regulations.
A single person can control the trust. However, democratic control exists in a society where decisions are made by voting.
The management board of the trust consists of trustees, but in the case of society, there is a governing body consisting of committee, trustees, council, directors, governors, etc.