Public Trust or Registered Society in Maharashtra: Which One?

People who want to start a charitable organisation in Mumbai are usually told two different things by two different advisers: register a trust, or register a society. Both are possible in Maharashtra, both end up before the Charity Commissioner, and the choice matters less than most people expect — but it does matter. This note sets out the practical differences.

The two structures

A public charitable trust is created by a trust deed. The settlor dedicates property to a charitable purpose, names the first trustees, and sets out how the trust is to be run. It is registered under Section 18 of the Maharashtra Public Trusts Act, 1950, by making an application in Schedule II to the Deputy or Assistant Charity Commissioner of the region.

A society is created by a group of persons who sign a memorandum of association and rules, and is registered under the Societies Registration Act, 1860, with the Registrar of Societies. In Maharashtra a registered society whose objects are charitable is also treated as a public trust and has to be registered under the Maharashtra Public Trusts Act as well. That is the point most people miss: a society in this state carries both registrations, not one.

How they are governed

• A trust is run by a board of trustees. Trusteeship is for life or for a fixed term as the deed provides, and succession happens the way the deed says. Since 1 September 2025, Section 30A also limits perpetual trustees to one-fourth of the board where the deed does not provide for them.
• A society is run by a managing committee elected by its members, with general body meetings, elections and quorum requirements.

So the real question is rarely “which is better”. It is whether the organisation wants a small, stable, self-perpetuating board, or a membership body that elects its managers periodically.

What is the same either way

Once registered under the Maharashtra Public Trusts Act, the obligations are broadly identical:

• Entries go into the Public Trust Register, and any change to those entries must be reported by a change report under Section 22, ordinarily within 90 days of the change.
• Immovable property cannot be sold, exchanged, gifted or leased beyond the permitted periods without the prior sanction of the Charity Commissioner under Section 36.
• Accounts must be kept, balanced and audited, and the audited statements filed with the office.
• Trust money must be kept in the forms permitted by Section 35.

Practical points that tend to decide it

• Number of people involved. A family or a small founding group usually finds a trust simpler; there are no elections and no membership register to maintain.
• Whether you want members. If the organisation is meant to grow a membership base — an association, a sports body, an alumni group — a society fits better.
• Compliance load. A society carries the Societies Registration Act filings and the Public Trusts Act filings. A trust carries only the latter.
• Perception with funders. Some grant-makers and CSR donors ask for a particular form. It is worth checking before you draft, because converting later is not straightforward.
• Income tax. Registration under Section 332 (formerly 12A) and approval under Section 354 (formerly 80G) of the Income-tax Act, 2025 are separate applications made to the income tax authorities. Neither structure is at an advantage there; both have to apply.

What the documents look like

For a trust: a trust deed on stamp paper, identity and address proof of the settlor and trustees, proof of the trust’s address, and the Schedule II application. For a society: a memorandum of association, rules and regulations, consent letters of the committee members, and the corresponding Public Trusts Act application.

Both routes are covered in more detail on the pages for trust registration and society registration.

Can you change your mind later?

Not easily. There is no simple statutory conversion from one form to the other. In practice an organisation that has chosen wrongly either lives with the structure, amends its governing document as far as the document and the Act permit, or winds up and starts again — which is slow and can raise questions about the transfer of assets. It is worth spending time on the choice at the start rather than assuming it can be corrected later.

This note sets out general information about procedure under the Maharashtra Public Trusts Act, 1950. It is not legal advice, and the position in any particular matter depends on its own facts and on the law as it stands at the time. Statutory references should be checked against the current text of the Act and Rules.

See also: how to register a public trust step by step and what registration costs.