What Is The Difference Between Trust, Section-8 Company & Society?
Trusts, Section-8 companies, and societies are different legal entities with distinct characteristics and purposes. Here are the key differences between them: Trust: Creation: A trust is created by a trust deed or a will, wherein a person (called the settlor) transfers property or assets to a trustee who holds and manages them for the benefit of specific beneficiaries or for a charitable purpose. Regulation: Trusts are governed by the Indian Trusts Act, 1882. Management: Trustees manage and administer the trust's assets and carry out its objectives. They have a fiduciary duty to act in the best interest of the beneficiaries. Tax Benefits: Trusts can avail tax exemptions if they are registered as a charitable trust or a public charitable trust. Perpetuity: Trusts can be created in perpetuity, meaning they can exist indefinitely. Flexibility: Trusts offer more flexibility in terms of managing and distributing assets as per the trust deed's provisions....