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Trust Registration

To run an NGO in India, a non-profit organisation can be registered under any of the three options as given below:

Trust Registration by executing a Trust deed or
Society Registration under the Registrar of Societies, or
Section 8 Company under the Companies Act, 2013.

A Trust is a closer system of a registered body with limited membership. It can be a family trust or a public trust. Election of office-bearers is not compulsory. Normally Trusts are created by dedicating some property to a charitable purpose, however, some cash fund may also be spared by the trust or trustees for charitable purpose while creating a trust.

Well; you can register an NGO/NPO as Trust with a charitable purpose. Such purposes may include social contribution in the form of education, medical help or undertaking activities of public utility that promote public welfare.

The most preferred way to run an NGO or a non – profit organization under trust is to form 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. Know more about Trust Registration with the support of our experienced Compliance Managers at Compliance Calendar LLP.

To assist you in procedure, Get in touch with us now.

For doing a charitable work for public, Public charitable trusts can be set up. India doesn’t have a national level law to govern charitable trusts, however; few states have enacted Public Charitable Trusts Act and NGO trust registration has to be done.

In the absence of a Trusts Act in a particular state or territory, the general principles of the Indian Trusts Act, 1882 shall apply for the NGO trust registration.

A Trust after its registration shall do the following compliance:

Obtain PAN card
Open a bank account
NITI Ayog Registration
Book-keeping and accounts
Income Tax return filing
GST registration, if applicable
Compliance with the Registrar of Firm - Filing of AGM resolution, accounts to be disclosed and member list to be filed with the Registrar of Firms.

If you want us to help you understand Trust Registration more with regard to registration queries, Get in touch with us now.

Documents Required of Trust Registration

To register an NGO as Trust, we require certain fixed documents whose quick checklist has been given below for your easy understanding:

Minimum 2 Trustee required of which one female member is recommended.
PAN & Aadhar Copy duly signed is required.
Suggested name of the TRUST.
Copy of Trust Deed duly signed is required.
Registered Office address proof required.
Details of Author, Trustee, Beneficiary and Trust property required.

Legal Procedures of Trust Registration

Registration of a Trust Deed is completely a legal work and it requires knowledge of Indian Trust Act and in-hand experience of clearing any objections raised by the concerned Sub-Registrar.

Trusts are registered using a document called Trust Deed. All trustees and witnesses will have to give thumb impressions/signatures on all papers.

Following items must be mentioned in the trust deed document:

Name and Address of the Settlor (Settlor is the person who is setting up the trust).
Name and address of other trustees.
Name of the trust.
Minimum and maximum number of trustees your trust can have.
Address of the registered office of the trust.
Objectives of the trust.
Rules and regulations of the trust.

Other important aspects of a trust:

For NGO trust registration, minimum two trustees are needed. All the trustees together are called Board of Trustees.
Trustees cannot draw any remuneration from the trust fund. However, they may take reasonable compensation for the professional services they provide.
At the time of registration, only the Settlor and two witnesses are required to be present in front of the sub-registrar. The trust deed will then go to the counter where data entry takes place.
Also, a No-Objection Certificate (NOC) from the owner of the property where the registered office of the trust is to be situated has to be obtained.
Two other documents that should be submitted at the time of making an application for registration are affidavit and consent letter.
Indian public charitable trusts are irrevocable.

Since registration of Trust is completely a legal procedure, we at Compliance Calendar LLP can help you to register your NGO if you are struggling to get proper guidance with regard to Trust Registration legal registration process.

You can Get in touch with our Compliance Manager to understand Trust Registration annual compliance requirements including guidance with regard to their functioning and day-to-day operation, be it maintaining accounts, meeting legal compliance or making sure all the mandatory requirements of the law are fulfilled to save you from the severe fines, penalties and imprisonment due to non-compliance.

Get in touch with us now to give you a Quotation and Proposal.

Send us your queries at info@ccoffice.in or WhatsApp/Call us at +91 99 88 42 42 11.

Features & Benefits of Trust Registration

Tax benefits

Trust being a non-profit organization, they leverage the exemption from the provision of income tax under section 12A and the donors also get tax deductions under section 80G of the Income Tax Act, 1961 respectively.

Oldest Form of NGO

Trust even today stands the oldest form of Non-Profit making organization in India.

Lesser Compliance

Trust has lesser compliance in comparison to Society and Section 8 Company.

Option of Private Trust

A private trust can be formed for the benefit of a group of people and not for all.

Option of Public Trust

A Public trust can be formed for the benefit of the general public.

Suitable to temple

Even today, all temples have their NGOs in the form of Trust.

Family owned Community Center or Personal Property

Trust Registration is best for these types of purposes.

Easy to recognise

Almost everyone is familiar with the name of Trust in India being the oldest form.

Frequently Asked Questions

What is Trust:

Trust implies the transfer of a property (cash, shares or valuable asset) from the owner to another person.

How many persons are required to register a trust?

A minimum of two persons are required to register a Trust in India.

Is it possible to form Trust with the family members?

Yes. Unlike Societies, a Trust can be registered with the blood relations or even if they happen to be relatives.

What are the objects for which Trust can be registered?

The Trust can be registered for the benefit of general public. 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, welfare of weaker section of society, and for Corporate Social Responsibilities (CSR) by companies under section 135 of the Companies Act, 2013.

What are the documents required to register a Trust Registration?

Basic KYC of Trustees, Registered office address proof and Trust Deed.

How much time it takes to register a Trust Registration?

The normal processing time to register a Trust is somewhere between 10 days to 20 days. This time limit may vary subject to the Registrar Availability.

Do we need to visit any department to register the Trust Registration?

Yes. Our Compliance Manger will be there to assist you in the complete procedure of Trust Registration.

Do we need to get GST Registration also for Trust Registration?

It depends on case to case basis. If Trust comes under the purview of the GST Act, it must get registered with GST.

Can Trust accept foreign donations?

A Trust is allowed receive foreign donations only when FCRA (Foreign Contribution Regulation Act 1976) registration has been obtained from Ministry of Home Affairs. FCRA license is normally applied when the Trust Registration is minimum 3 years older (in exceptional cases can be allowed-T&C.)

Further Questions/ Confusion or anything bothering you?

Not to worry at all! Someone from our experienced team will resolve all your queries. Our Compliance Manager will help you to give you the best advice without any fees. Get in touch with us. Write to us at info@ccoffice.in or WhatsApp/Call us +91 99 88 42 42 11.

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