What Needs To Be Done To Register A Trust NGO?

23 May 2015

A trust can be divided into two categories, a private trust and a public trust. The private trusts are governed under the Indian Trusts Act, 1882. They are undertaken to be utilized for private purposes like for running a private institution. They do not receive any tax reliefs from the government of India.

The public trusts are set up or utilized for charitable purposes for public. Public charitable trusts are not governed by any of the government act. However, there are few states thathave enacted their own Public Charitable Trust Act.

Some important points related to registration of trusts:

  1. For a trust to be registered, a document called trust deed is prepared. It contains information related to the Trust. Along with these well printed documents, a non judicial stamp paper is to be attached worth Rs. 100.
  2. A no objection certificate (NOC) is required from the owner under whose property the trust office is situated. If you are yourself the owner of such property, no such certificate is required.

3. Important elements that need to the part of a Trust deed:

  • Name and address of the person setting the trust.
  • Name and address of other members of Trust
  • Name of Trust
  • Statutory limit of the number of trustees
  • Address of registered office
  • Objectives of trust
  • Its rules and regulations
  1. The minimum number of trustees required to start a Trust is 2, while the maximum number depends on the Trust.
  2. Trust members can be related as family members, unlike the Societies.
  3. A Trust cannot be wound up unless mentioned in the Trust deed.
  4. The trustees are not appointed through an electoral process.
  5. Collectively, all the trustees are called board of trustees.
  6. Trustees are not allowed to receive remuneration from the Trust Fund.
  7. Interest received from bank is not distributed among trustees.
  8. Amendment of Trust deed can be done by adopting a Supplementary Trust deed.
  9. For final registration of Trust
  • A Settlor and two witnesses are required to be present with the sub registrar under the jurisdiction of whom the registration office is placed.
  • The ID’s of these people are checked by the Sub registrar.
  • The Trust deed is then sent to counter where data entry takes place.
  • The Settlor and two witnesses are photographed.
  • A fee amounting to Rs. 1100 is to be paid where 100 is taken as registration fees and 1000 for copy of trust deed to be kept with Sub registrar.
  1. The certified copy of Trust deed is then to be collected from the registrar’s office after a week.

Other important points

  1. Income derived from the trust is exempted from Income tax. To avail the facility, a certificate under section 12A is to be filled.
  2. 80G certificate should be acquired under income tax department to make the donations to charitable trust exempt from tax.
  3. A lawyer is a best person that can help you in getting a Trust registered.

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