Trust is a kind of entity which is formed by executing a trust deed and registered under Indian Trust Act. The soul of trust lies in the motto behind its introduction which says to transfer property from owners to the trust and that this is done for lawful purposes.
There are two types of trust. A public trust (charitable trust) is created for the benefit of the general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.
A Trust or an NGO can acquire 12A certificate from the Income Tax Department. Thus, a Trust acquiring such a certificate is exempted to pay income tax for the entire lifetime on its surplus income.
Also, an NGO must obtain 80G certificate. This certificate allows donors, that is persons or organizations making donations to an 80G certified NGO, to avail deduction. Thus, such a deduction is given to the donors under section 80G of the Income Tax Act.
The Services which are included in our package are as Follows:
1. Trust Deed
2. MoA of Trust
3. AoA of Trust
4. Trust Pan Card
A Trust is governed by Indian Trusts Act, 1882 across India. However, each state can formulate its own Trusts Act to govern such non – profit organizations in its own state.
Further, a Trust can receive funds and projects much like a society. However, its quite challenging to get funds or projects immediately after a Trust gets registered. Therefore, to obtain funds or acquire projects, a Trust needs to meet certain eligibility criteria. Such criteria may include relevant experience, performance of a Trust, its age and such other parameters.
Furthermore, a Public Charitable Trust has to be registered with the office of the charity commissioner who has jurisdiction over the Trust. Hence, following is the procedure for its registration.
1. Pan Card of all Directors and Subscribers
2. Identity Proof i.e. Voter Id Card/ Driving License/ Aadhar Card/ Passport of all Directors and Subscribers
3. Address Proof i.e. Bank Statement, Mobile bill, Telephone bill of all Directors and Subscribers
4. Passport Size Photographs of all Directors and Subscribers
5. Current Electric Bill/ Utility Bill as Registered Office Proof
6. Rent Agreement if Applicable
Step -1 Arrange all Required Documents:
The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step -2 Name Selection: The Next Step is to Select the unique name of your trust. The name should not violate someone else name or trademark. The president of the proposed trust shall file an affidavit that the name is not same or similar to any other NGO.
Step-3: Preparation of Documents: The Next Step is Preparation of Documents such as MOA and Bye Laws of trust to be Submitted at Department.
Step-4: Registration of Trust: The Next Step is Submission of an application along with the signed MOA, by rules, affidavits and KYC documents of desirous person and officials. After verification of documents the Certificate of Registration of trust is issued.
Step-5: Issuance of Pan and Tan: The next step is to apply for allotment of Pan Number and TAN and thereafter opening of a bank A/c for collection of membership fees, subscription charges or donations as the case may be.
1. Pan Card of all Members
2. Identity Proof i.e. Voter Id Card/ Driving License/ Aadhar Card/ Passport of all Members
3. Address Proof i.e. Bank Statement, Mobile bill, Telephone bill of all Members
4. Passport Size Photographs of all Members
5. Current Electric Bill/ Utility Bill as Registered Office Proof
6. Rent Agreement if Applicable
Q1. What is a public trust and what is the purpose of setting up the same?
The purpose for which a public trust can be created is the benefit of general public, and the same must be clearly prescribed in the trust deed, as it guides its functioning in the course of time. Generally a public trust is created for setting up a school, colleges, other educational initiatives, hospital, old age homes, orphanage, for promotion of child health and their empowerment, welfare of weaker section of society, and for fulfillment of Corporate Social Responsibilities (CSR) by companies under section 135 of the Companies Act, 2013.
Q2. Can the property of the Trust be sold?
The Trustees do not have the right to sell the property, however, the trust properties can be sold after obtaining prior permission from the appropriate civil court.
Q3. In what other ways an NGO can be registered in India?
Based on the cause and objectives, NGOs can be registered online as Trust or Section 8 companies.
Are government employees or officers allowed to be members of NGO?
Yes. Government employees or officers can be part of NGOs, provided the NGO is not working towards any anti-government activities or programmes. The intended members should ensure the particular organization is not profit making and that its members do not draw any salary from the NGO.
Q4. What is the procedure for closure of a trust?
The trust is usually irrevocable in nature. For reasons like disqualification of trustees, absence of trustees, mismanagement of the trust, the trust can be merged with a trust having similar objective with the permission of the court.
Q5. Is there any certification for registration of a trust?
There is no specific certificate for a trust registration. On the other hand, getting the trust deed registered with the appropriate authorities would suffice.
Q6. Are government employees or officers allowed to be members of NGO?
Yes. Government employees or officers can be part of NGOs, provided the NGO is not working towards any anti-government activities or programmes. The intended members should ensure the particular organization is not profit making and that its members do not draw any salary from the NGO.