Trust vs. Society: Which NPO is Right for You?

**Trusts** and **Societies** are the two primary ways to register a **Non-Profit Organisation (NPO)** in India, besides a Section 8 Company. They are typically used for education, poverty relief, medical aid, or cultural promotion.

**Trusts** are governed by a Trust Deed (generally for private and family NPOs), while **Societies** are governed by the Societies Registration Act, requiring more members and formal democratic structures (better for public projects and educational institutions).

Common Benefits of NPO Registration

Tax Exemptions (80G/12A)

Eligibility to apply for income tax exemption and provide tax benefits to donors.

Legal Identity

Allows the organization to own assets, enter into contracts, and manage funds legally.

Eligibility for Grants

Mandatory status to receive government funding, grants, and international aid (FCRA).

Trust/Society Registration Process

1

Drafting Documents

Drafting of the comprehensive **Trust Deed** or **Society Memorandum of Association (MoA) and Bye-Laws**.

2

Member Signatures & Stamp Duty

Collecting signatures from trustees/members and execution of the Deed on appropriate stamp paper.

3

Registration Authority Filing

Filing the documents with the local Registrar (Sub-Registrar for Trust, Registrar of Societies for Society).

4

PAN, TAN & Bank Account

Obtaining permanent PAN/TAN and facilitating the opening of the NPO's bank account.

Trust/Society Registration Package

Register your NPO correctly and ensure compliance for future grant eligibility:

*Excludes actual stamp duty, which varies significantly by state and trust value.