# Society Registration vs Trust Registration in Kerala
When a group of passionate individuals in Kerala decides to formalize their social work—whether it is setting up an orphanage in Wayanad, a sports club in Kochi, or an engineering college in Trivandrum—they must create a legal Non-Governmental Organization (NGO).
However, "NGO" is just a general term. Legally, you must choose a specific corporate structure. In Kerala, the two most common structures are the **Charitable Trust** and the **Charitable Society**.
Choosing between the two is not a matter of paperwork; it is a fundamental decision about **control**. If you choose the wrong structure, you could literally be legally voted out of the very charity you founded.
In this comprehensive guide, we compare the Indian Trusts Act with the Kerala-specific Societies Act, breaking down the minimum requirements, the registration process, and how to choose the perfect structure for your vision.
## Table of Contents 1. The Core Difference: Control vs. Democracy 2. Registration Authority & Governing Laws 3. Minimum Member Requirements 4. Registration Process & Timelines 5. Can They Both Get 80G Tax Exemptions? 6. Which Structure Should You Choose? 7. Build Your NGO's Legal Foundation with SKATT
## The Core Difference: Control vs. Democracy
This is the most critical distinction every founder must understand:
**The Trust (Autocratic/Board Control):** A Trust is a closed entity. The original founders (the Author and the Trustees) draft a Trust Deed that dictates exactly how the organization will be run. The Trustees hold permanent power (often for life, unless they resign). New trustees can usually only be added by the existing board. **There are no public elections.**
**The Society (Democratic Control):** A Society is a highly democratic entity designed for large communities. The ultimate power lies with the General Body (the general members who pay an annual subscription fee). The General Body holds an Annual General Meeting (AGM) where they **vote and elect** an Executive Committee (President, Secretary, Treasurer) to run the society for a specific term (e.g., 2 years). If the founders lose the election, they lose control of the Society.
## Registration Authority & Governing Laws
The two structures operate under entirely different legal frameworks.
### The Charitable Trust - **Law:** Governed by the **Indian Trusts Act, 1882**. - **Registration Authority:** The Trust Deed is registered at the local **Sub-Registrar Office** (Revenue Department) where the registered office is situated.
### The Charitable Society - **Law:** In Kerala, Societies are NOT governed by the central 1860 act. They are governed specifically by the **Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955** (for the southern districts) and similar state regulations. - **Registration Authority:** The Memorandum and By-Laws are registered with the **District Registrar** (Inspector General of Registration).
## Minimum Member Requirements
**Trust:** You need a minimum of **2 people** to form a Trust. - One person is the "Author" or "Settlor" (the person who creates the trust and donates the initial asset or cash). - The other person is the "Trustee" (the person who manages the trust). Often, there are 3 to 5 trustees to form a board.
**Society:** You need a minimum of **7 people** (who are not from the same immediate family) to come together, sign a Memorandum of Association, and form the initial Governing Body of the Society.
## Registration Process & Timelines
### Registering a Trust in Kerala 1. Draft a highly detailed **Trust Deed** outlining the charitable objectives, powers of trustees, and succession rules. 2. Print the deed on non-judicial stamp paper of the appropriate value. 3. The Author, Trustees, and two witnesses must physically visit the Sub-Registrar office. 4. Photographs and biometric thumb impressions are taken. 5. **Timeline:** If the deed is drafted perfectly, registration is usually completed within **1 to 3 days**.
### Registering a Society in Kerala 1. Draft a **Memorandum of Association** (Objectives) and **Rules & Regulations** (By-laws regarding membership, elections, and meetings). 2. All 7 founder members must sign the documents. 3. Submit the documents, along with ID proofs, address proofs, and a covering letter to the District Registrar. 4. The Registrar thoroughly scrutinizes the by-laws to ensure democratic principles are upheld. 5. **Timeline:** The scrutiny process takes longer, usually taking **2 to 4 weeks** to receive the final Certificate of Registration.
## Can They Both Get 80G Tax Exemptions?
Yes. From the perspective of the Income Tax Department, both a registered Trust and a registered Society are treated equally as NGOs.
Provided your organization's objectives are strictly charitable (and you are not conducting business for profit), both entities can apply to the Commissioner of Income Tax for: - **12A Registration:** Makes the NGO’s own income exempt from income tax. - **80G Registration:** Allows the donors who give money to your NGO to claim a 50% tax deduction on their donations. - **FCRA Registration:** Both can apply to the Ministry of Home Affairs to receive foreign donations (after 3 years of active social work).
## Which Structure Should You Choose?
**Choose a Trust if:** - You are starting a school, college, or hospital using your own land and capital. - You are starting a family-run charity in memory of a relative. - You want to retain absolute, permanent control over the management and assets without the headache of conducting annual democratic elections.
**Choose a Society if:** - You are forming a Residents Welfare Association (RWA) for an apartment complex. - You are starting a sports club, a literary forum, or an alumni association. - You want a large, open membership base where thousands of people pay an annual fee and have a democratic voice in how the organization is run.
## Build Your NGO's Legal Foundation with SKATT
Drafting the foundational documents for an NGO requires precise legal foresight. A poorly drafted Trust Deed can result in the Income Tax Department rejecting your 80G application. A poorly drafted Society By-law can lead to massive legal disputes during committee elections.
At **SKATT Business Park**, our **Corporate Legal** division specializes in non-profit structuring in Kerala. We consult with you to determine the best structure for your vision, draft bulletproof Trust Deeds or Society By-laws, handle the physical registration at the Registrar's office, and subsequently process your complex 12A and 80G Income Tax exemptions.
Focus on your charitable mission. Let us handle the legal scaffolding.
[Explore Our NGO Registration Services](/consulting) | [Consult with a Legal Expert Today](/contact)
--- ## FAQ
**Can family members form a Society?** The Registrar in Kerala usually rejects Society applications if all 7 founding members belong to the same immediate blood family, as it defeats the public, democratic nature of a Society. For family-run charities, a Trust is the correct structure.
**Can a Trustee draw a salary from the Trust?** Generally, Trustees serve in an honorary capacity. However, if the Trust Deed explicitly permits it, and the Trustee is providing a professional service (e.g., a doctor serving as a trustee in a Trust hospital), they can draw a reasonable professional remuneration.
**Can I convert a Society into a Trust later?** No. You cannot legally convert a Society into a Trust. They are governed by two entirely different state and central acts. You would have to dissolve the society (transferring its assets to another society) and start a brand new Trust from scratch.
--- ## Strong CTA **Are you ready to formalize your social vision in Kerala?** Do not choose your legal structure blindly. Contact SKATT Business Park today to draft your Trust Deed or Society Memorandum and secure your 80G tax exemptions.
