Ask 4 Compliance | Trust/Societies/NGO’S
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TRUST/SOCIETIES/NGO’S

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NON GOVERNMENT ORGANISATIONS (NGOs)

A Non Governmental Organization (NGO) is perceived to be a body of individuals or an association of persons formed with non-profit motive. NGOs can be formed in India by two methods:

  1. By registration of a Trust under Indian Trusts Act, 1882
  2. By registration of a Society under Societies Registration Act, 1860
  3. Section-8 Company by registering under Companies Act, 2013 (As discussed under “Special Entities”)

 

REGISTRATION OF TRUST UNDER INDIAN TRUSTS ACT, 1882

A Trust is an agreement between group of individuals (called trustees) to manage property (movable or immovable including intellectual property rights) over which they have control either to benefit other individuals (called beneficiaries) or for charitable purposes. This group of trustees may be incorporated as a board under the Charitable Trusts Act 1957 if the objects are charitable.

A Trust can either be a private trust or a public charitable trust. Private trusts are governed by the Indian Trusts Act (1882) and are used for private purposes, such as running a private estate or institution. Private trusts are not given any tax benefits by the Government of India. If you want to do some charitable work for public –you can set up a public charitable trust. India does not have a national level law to govern charitable trusts. 

Process & Timeline

2-3 Months

Professional Fees

Rs. 12500

(GST, Government Fees and other Out of Pocket Expenses Extra)

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TRUST DEED

This document contains all the information about the Trust and is printed/written/typed. Along with these papers you would need to attach a Rs. 100 Non-Judicial stamp paper (please check the latest stamp act of respective state). All the Trustees are required to give thumb impressions and signatures on these papers. Same process is applicable for witness too. You will need a competent professional to draft the same.
Following elements must be mentioned in the Trust Deed Document:

  1. Name and address of the Settler (Settler is the person who is setting up trust)
  2. Name(s) and address(es) of the other trustees
  3. Name of the trust
  4. Minimum and maximum number of trustees your trust can have
  5. Address of the registered office of the trust
  6. Objectives of the trust
  7. Rules and Regulations of the trust

For registering a trust you need minimum two trustees (i.e. one settler and another person). You can decide the maximum number of trustees and this number must be mentioned in the trust deed. All the trustees together are called Board of Trustees. This board collectively governs the trust. Unlike societies, in case of trusts all or some of the trustees can be related persons (i.e. they may belong to the same family). Trusts are irrevocable –unless it is mentioned in the trust deed. This means that the trust cannot be wound up.

Trustees are usually life-long members or their tenure is specified in the deed. Electoral process is not involved in the appointment of trustees. Board of Trustees can also have various designations for trustees. Common designations are Chairperson and Managing Trustee Trustees cannot draw any remuneration from the trust fund. However, they may take reasonable compensation for the professional services they provide to the Trust. Profits earned by the Trust (e.g. interest gained from bank) cannot be distributed among the trustees. Trust Deed can be amended through a Supplementary Trust Deed.

Most important part of the Trust Deed that you should pay special attention to is objectives of the trust. You should be as thorough as possible in writing down trust objectives so that you can function smoothly without any problems. The Professional you appoint will provide you detailing of filing process with Registrar office and timeline.

SOME COMMON CHARACTERISTICS OF TRUSTS INCORPORATED UNDER THE CHARITABLE TRUST ACT 1957 ARE

  • Trust has a board of at least two trustees;
  • Public Trust must have charitable purposes;
  • Trust has its trustees make the major decisions;
  • Trust is set up under a trust deed which outlines how it operates;
  • Trust often has more limited community or member involvement than incorporated societies;
  • Trust`s assets can be used to meet its debts, but if it is incorporated and trustees have acted responsibly, they are unlikely to be personally liable;
  • Trustees are generally not accountable in specific ways unless the deed specifically set these out;
  • it can be legally wound up at any time, unless a specific term for its existence has been stipulated in the trust deed (more common in private Trusts);

Our team of highly qualified professionals at Ask4compliance.com can help you to establish a Trust to start your social work as a non government oraganisation and to avail host of benefits.

 

DOCUMENTS REQUIRED FOR REGISTRATION OF A CHARITABLE TRUST

  • Original Trust Deed or a certified copy.
  • Application for Incorporation of Trustees as a Board The application must be signed by the majority of trustees.
  • Statutory Declaration. The statutory declaration states: whether any Trustees hold any property as trustees for other trusts; that at a meeting of the Trust a resolution was passed approving incorporation; and that the person making the Declaration has been approved by the Trustees to make it.

REGISTRATION OF SOCIETIES UNDER THE SOCIETIES REGISTRATION ACT, 1860

Any seven or more persons associated for any literary, scientific or charitable purpose, or for any such purpose, as is described in Section 20 of this Act, may subscribe by their names to a Memorandum of Association, and [filing the same with the registrar form themselves] into a society under this Act.

CRITERIA

  • A minimum of 7 members are required to register a Society. A society shall be registered with the Registrar office under Societies Registration Act 1860.
  • If it is proposed to give all India character to the society there must be minimum of eight different persons from different States of Indian Union to the memorandum. 
  • As per the Societies Act, the Governing body meeting and Annual general meeting should be conducted. Governing body members are entrusted the management of the affairs of the society. Whereas the General body member duties include election of Governing body members, alteration of name, objects, rules and regulations if necessary. Even a foreigner can be a member of a society in India.

Our team of highly qualified professionals at Ask4compliance.com can help you to establish a Society to start your social work as a non government oraganisation and to avail host of benefits.

Process & Timeline

2-3 Months

Professional Fees

Rs. 12500

(GST, Government Fees and other Out of Pocket Expenses Extra)

Pay Now!

DOCUMENTS REQUIRED FOR REGISTRATION OF THE SOCIETY

  • Request letter to register a society under Societies Registration Act 1860
  • Two sets of Memorandum of association including list of proposed Governing Body and list of desirous persons (founder members of the society)
  • Two sets of Rules and regulations framed for the functioning of the organisation.

 

  • Affidavits (on Rs.10/- stamp paper from President/Secretary of the Society regarding the name/title of the society)
  • Copy of residence proof of all desirous persons.
  • Proof of ownership of the registered office of the society and no objection certificate(on Rs.10/- stamp paper)

 

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