Trust Registration Requirements

Charitable Trust Registration
Every charitable trust is formed by registration of a trust deed. Therefore, charitable trust registration always refers to the trust deed. There are over seven lakh different types of federally recognized non-profit organizations in India. However, official seal of approval has not been issued in favor of many of them.
For registration of charitable trust, you need to have some basic knowledge about how to set up a new trust as far as its registration, requirements of such registration and fees payable for registration are concerned. Both federal and state authorities have established their own systems of registration of charitable trusts. Specific laws such as the Trust Act 1882 have been promulgated, and application forms have been prescribed to facilitate the process of registration.
People establish charitable trusts with the joint purpose of engaging in charitable activities while generating certain benefits for themselves, their heirs and successors. Other relevant reasons for which people set up charitable trusts are to avail of tax exemptions. Such charitable trusts are non-profit organizations. However, to avail all these benefits, the charitable trust must have a legal entity. Such legal entities are provided with charitable trust registration, a process prescribed under the Trust Act and federal laws.

trust

A public charitable trust is usually set up when it involves property, especially in terms of land and buildings.

]Legislation

Different states in India have different trust acts in force, which govern state trusts; In the absence of a Trust Act in a particular state or territory the general principles of the Indian Trust Act 1882 apply.

main equipment

The main instrument of any public charitable trust is the trust deed, which should contain the objects and method of management of the trust. The minimum and maximum number of trustees must be specified in every trust deed. The trust deed should clearly state the objects and purposes of the trust, how the trust should be managed, how other trustees can be appointed or removed, etc. The trust deed must be signed by both the settlor/trustees and the trustee/trustees in the presence of two witnesses. The trust deed must be executed on non-judicial stamp paper, the value of which will depend on the valuation of the trust property.

trustees

A trust requires at least two trustees; There is no upper limit on the number of trustees. The management board consists of trustees.

Application for Registration

• The application for registration should be made to the officer having jurisdiction over the area in which the trust is to be registered.
• After providing the details (in the form) regarding the designation by which the public trust will be known, names of the trustees, method of succession etc., the applicant will have to affix a court fee stamp of Rs 2 on the form and pay a very nominal registration fee. Payment has to be made which can range from Rs 3 to Rs 25 depending on the value of the trust property.
• The application form should be signed by the applicant in the presence of the Regional Officer or the Superintendent of the Regional Office of the Charity Commissioner or a Notary. The application form should be submitted along with a copy of the trust deed.
• Two other documents to be submitted while applying for registration are Affidavit

• Registration can be done either at the state level (i.e. at the office of the Society Registrar) or at the district level (i.e. at the office of the District Magistrate or at the local office of the Society Registrar).
• The process varies from state to state. However normally the following documents should be submitted along with the application: (a) Memorandum of Association and rules and regulations; (b) letter of consent of all the members of the managing committee; (c) authorization letter duly signed by all the members of the managing committee; (d) Affidavit by the President or Secretary of the Society on non-judicial stamp paper of Rs. 20-/-, accompanied by Court fee stamp; and (e) a declaration by the members of the Managing Committee that the moneys of the Society shall be used only for furtherance of the objects and purposes of the Society.
• All the above documents required for application for registration must be submitted in duplicate, along with the necessary registration fees. Unlike the trust deed, the memorandum of association and rules and regulations do not need to be executed on stamp paper.

Section 25 Company

According to Section 25(1)(a) and (b) of the Indian Companies Act, 1956, a Section-25 company can be established ‘for the promotion of commerce, arts, science, religion, charity or any other useful purpose’ Provided that the profits, if any, or other income shall be applied only to the promotion of the objects of the company and no dividend shall be paid to its members.

Legislation

Section-25 Companies are registered under Section-25 of the Indian Companies Act, 1956.

main equipment

For a Section-25 company, the main documents are the Memorandum and Articles of Association (stamp paper is not required)

trustees

Under Section 25, a company is required to have at least three trustees; There is no upper limit on the number of trustees. The management board is in the form of a board of directors or a managing committee.…[ApplicationforRegistration[पंजीकरणकेलिएआवेदन
1. An application for availability of name shall be made to the Registrar of Companies in the prescribed Form No. 1A 500 rupees Should be done with a fee of Rs. If the proposed first name does not seem acceptable to the Registrar, it is advisable to suggest three other names by which the company will be called.
2. After the availability of the name is confirmed, an application should be made in writing to the Regional Director of the Company Law Board. The application must be accompanied by the following documents:

• Three printed or typed copies of the memorandum and articles of association of the proposed company, duly signed by all the promoters with full name, address and occupation.
• A declaration by an advocate or chartered accountant (or practicing company secretary or cost accountant) that the memorandum and articles of association have been prepared in accordance with the provisions of the Act and the rules made thereunder in relation to registration or matters incidental or supplementary thereto All the requirements have been duly complied with.
• Three copies of a list of the names, addresses and occupations of the promoters (and where the firm is the promoter, each partner of the firm), together with a list of the members of the proposed board of directors, together with the names of the companies, associations and other entities in which such promoters are members. , Partners and members of the proposed Board of Directors are directors or hold responsible positions, if any, along with details of such positions.
• A statement showing in detail the assets (with their estimated values) and liabilities of the association as on the date of application or within seven days of that date.
• An estimate of the future annual income and expenditure of the proposed company, specifying the sources of income and objects of expenditure.
• A statement giving a brief description of the work, if any, already done by the association in pursuance of Section 25 and the work proposed to be done by it after registration.
• A statement setting out briefly the grounds on which the application is made.
• Every person applying must declare that he is of sound mind, is not an undischarged insolvent, has not been convicted by a court of any offense and is eligible for appointment as a director under Section 203 of the Companies Act, 1956. Not disqualified.

3. To the applicants, within a week from the date of making the application to the Registrar of Companies, at least once in a main language newspaper of the district in which the registered office of the proposed company is situated or is situated and circulated in that district is, must publish a notice in the prescribed manner, and at least once in an English newspaper circulating in that district.
4. The Registrar of Companies, after considering the objections received within 30 days from the date of publication of the notice in the newspapers, if any, and after consulting any authority, department or ministry, as he may decide in his discretion Can determine whether a license should be granted or not.
5. The Registrar of Companies may direct the company to insert in its memorandum, or in its articles, or in both, such conditions of license as may be specified by him in this behalf.