6 Most Important Differences between a Company and a Society

6 Most Important Differences between a Company and a Society are listed below:

Company:

1. A company is incorporated under the Companies Act, 1956

2. The object of incorporation of a company is business

3. There are mainly two kinds of companies – (i) private, (ii) public.

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4. The minimum number of members is two for private and seven for public companies.

5. The maximum number of members is fifty for private and no limitation for public companies. The reputed companies consist lakhs of share holders/members.

6. Huge money is accumulated by companies by issuing shares and debentures.

Society:

1. A society is registered under the Societies Registration Act, 1860 A co-operative society is registered under the Co­operative Societies Acts (State Acts).

2. The object of formation of a society is social and charitable purposes.

3. Societies are mainly two kinds –

(i) Societies; (ii) Co-operative Societies.

4. The minimum number of members is seven for societies and eleven for a co­operative society (this number varies from State to State, and from time to time).

5. Even though there is no limitation for maximum number, the societies and co­operative societies, usually consist below 100 members, rarely thousand. There is no possibility of having lakhs of members in them.

6. Always majority of the societies and co­operative societies suffer with lack of funds. They cannot acquire huge amount.