The main purpose of trust Registration is the establishment of the company as sec -8 company is for the promotion of non-profit objectives like commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object . Any profits gained as an income are used for promoting their welfare work and are not distributed to the shareholders as dividend funds.

A Section 8 Company has similar features to a Trust or Society expect, a section 8 Company is registered with the Ministry of Corporate Affairs. NGO/Trusts and Societies are registered under the State laws. Section- 8 Company is recommended for the big operation sizes like for opening of the university, College, School, research center, Sports Academy and technical college etc.

A minimum of 2 directors are needed or required if the sec 8 company is made/incorporated as a private limited. And will require 3 directors in case of public limited. The maximum members that can be recruited could be not more than 200 in private limited company, while public limited has no such limit. There is also no need for any minimum paid capital in case of Trust Registration under sec-8 Company.