People starting a school, a temple committee, a welfare group or a foundation often ask which of the three to choose. This guide sets out what each law actually says, in plain terms, so the choice is made on facts. It does not replace advice on your specific plans.
Side by side
| Public trust | Society | Section 8 company | |
|---|---|---|---|
| Law | Maharashtra Public Trusts Act, 1950 | Societies Registration Act, 1860, as it applies in Maharashtra | Companies Act, 2013, section 8 |
| Who registers it | Deputy or Assistant Charity Commissioner of the region | Registrar of Societies, at the Charity Commissioner’s office | Licence from the Central Government, then registration as a company |
| Minimum people | Not covered here | At least seven persons sign the memorandum | Not covered here |
| Government fee | Rs 3 to Rs 25, by value of trust property (Rule 6(5)) | Rs 50 registration fee plus Rs 5 portal fee | As prescribed under the Companies Act |
| Stated time | No fixed period in the Act; inquiry and public notice follow | 30 working days, as notified by the Charity Commissioner | Not covered here |
| Dividends | Not covered here | Not covered here | Prohibited; profits must be applied to the objects |
Public trust
Section 2(13) of the Maharashtra Public Trusts Act, 1950 defines a public trust as an express or constructive trust for a public, religious or charitable purpose. It expressly includes temples, maths, wakfs, churches, synagogues and agiaries. A trust is registered with the Public Trust Registration Office for its region, and for a trust created after the Act, section 18 requires the application within three months. Changes, such as a new trustee, must be reported within 90 days under section 22.
Read more: how to register a public trust, what it costs and registering a temple, church or mandal trust.
Society
Under section 1 of the Societies Registration Act, 1860, any seven or more persons associated for a literary, scientific or charitable purpose can form a society by subscribing to a memorandum of association and filing it with the Registrar. In Maharashtra, the Registrar of Societies works within the Charity Commissioner’s office, and registration is made online on charity.maharashtra.gov.in.
The Charity Commissioner’s published checklist asks for:
- A covering letter, the memorandum of association, and the rules and regulations
- Consent letters of the members, an authority letter and a self-declaration on stamp paper
- The resolution of the members’ meeting, and Schedules I, II and VI
- A no-objection letter from the owner of the office premises and an address proof, such as a recent electricity bill
- Photographs and identity proof of all members
The Charity Commissioner’s service chart lists a Rs 50 registration fee, a Rs 5 portal fee and a notified time of 30 working days. The certificate is digitally signed and downloaded from the applicant’s dashboard.
A society formed for a religious or charitable purpose also falls within the definition of a public trust in section 2(13) of the 1950 Act. That is why many schools and welfare bodies in Maharashtra hold both a society registration and a public trust registration. See society registration in Mumbai.
Section 8 company
Section 8 of the Companies Act, 2013 lets the Central Government license a company whose objects are the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or similar objects. The company must intend to apply its profits and income to those objects and must prohibit the payment of any dividend to its members. It can be registered without the words “Limited” or “Private Limited” in its name.
A Section 8 company cannot alter its memorandum or articles without the Central Government’s prior approval. If it fails to comply with the section, the Act provides for a fine on the company of Rs 10 lakh to Rs 1 crore, and fines on its directors and officers in default. See NGO and Section 8 compliance.
Frequently asked questions
Which is the right choice for a temple or religious place?
The 1950 Act names temples, maths, churches, synagogues and agiaries as public trusts, so religious places in Maharashtra are generally registered as public trusts. See religious and community trusts.
How many people are needed to start a society?
At least seven. Section 1 of the 1860 Act and Rule 4 of the Maharashtra Societies Registration Rules, 1971 require seven or more persons to sign the memorandum.
Can a Section 8 company pay dividends?
No. Section 8 requires the company to prohibit the payment of any dividend to its members.
Our chambers in Malad West help with trust and society registrations and filings before the Charity Commissioner’s offices in Mumbai, Thane and Alibag. For help, contact the chambers.
Sources: Maharashtra Public Trusts Act, 1950; Bombay Public Trusts Rules, 1951; Societies Registration Act, 1860 and Maharashtra Societies Registration Rules, 1971, as published on charity.maharashtra.gov.in; Charity Commissioner’s society registration checklist and service chart (2024); Companies Act, 2013, section 8.