What is Trust Registration?
A trust is a legal entity created by executing a trust deed and registering it under the Indian Trust Act. The fundamental principle behind the formation of a trust is to transfer property from its owners to the trust for lawful purposes.
Trusts can be broadly classified into two categories – public trust or charitable trust, which is established for the welfare of the general public, and private trust, which is set up for the benefit of a specific group of individuals known as beneficiaries.
.12A and 80G Certificates
A Trust or NGO can obtain a 12A certificate from the Income Tax Department. This certificate exempts the Trust from paying income tax on its surplus income for its entire lifetime.
In addition, an NGO must acquire an 80G certificate, which allows donors who contribute to an 80G certified NGO to claim a deduction on their taxes under section 80G of the Income Tax Act.
ERA Legal Services Trust Registration Package
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
Legislation Pertaining to Trust
A Trust is regulated by the Indian Trusts Act, 1882, which is applicable throughout India. Nevertheless, each state can draft its own Trusts Act to administer such non-profit organizations in its jurisdiction.
Similar to a society, a Trust can receive funds and projects. However, it can be challenging to obtain them immediately after registration. To qualify for funds or projects, a Trust must meet specific eligibility requirements, such as relevant experience, performance, age, and other parameters.
Additionally, a Public Charitable Trust must register with the charity commissioner having jurisdiction over the Trust. Therefore, the registration process for a Public Charitable Trust involves the following steps.
Documents Required for Trust Company Incorporation
To register a company in India, the following documents and information are typically required for all directors and subscribers:
- Permanent Account Number (PAN) card
- Identity proof, such as Voter ID card, driving license, Aadhaar card, or passport
- Address proof, such as bank statement, mobile bill, or telephone bill
- Passport size photographs
- Proof of registered office address, such as a current electric bill or utility bill
- Rent agreement, if applicable.
Trust Registration Procedure
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.
Documents Required for trust Registration
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
FAQ on trust
Q1. What is a public trust and what is the purpose of setting up the same?
A public trust is established for the benefit of the general public, and its purpose must be clearly stated in the trust deed to guide its operations over time. Typically, a public trust is created to establish schools, colleges, hospitals, orphanages, old age homes, promote child health and empowerment, welfare of disadvantaged sections of society, and to fulfill 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.