Company Forms in comparison

	SECTION 25 COMPANY	SOCIETY	TRUST
Objects	Non-profit activities	Charitable, Literary, Scientific, etc	Charitable, Socially beneficial
Statute/Law	Indian Companies Act 1956	Societies Registration Act 1860	Bombay Public Trusts Act 1950
Alternation of objects	Complex legal procedure	Simple procedure	Normally only Settlor can modify
Formation	Complex procedure, 3-6 mths.	Simple and easy	Simple and easy
Management	Formalities of Company law have to be observed.	Few restrictions imposed under the Act	Very few restrictions imposed under the Act
Meetings	To be held as per provisions of law which are quite extensive.	Annual meeting as per law and Rules of the society	No provisions laid down
Penalties	Various offences and lapses attract severe penalties.	Few offences and penalties have been prescribed	Very negligible
Legal Status	Full legal status	Legal status with certain limitations	Legal status with limitations
Statutory Regulation	Exhaustive but mature	Very limited	Nominal
Removal of members	Not possible without consent	Possible without consent	Not applicable
Dissolution or takeover by state	Very difficult	Possible	Possible

Recent Topics :