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PDF Editor FAQ
Can we reconstitute an old trust deed without revoking it?
Yes. It can be done by means of a Supplementary Trust Deed in pursuance of an appropriate Resolution passed by the Board of Trustees. If the main Trust Deed was registered, the ensuing Supplementary Trust Deed must also be registered. It is advisable to take a consultation from a local Advocate, by producing the relevant documents.
How can minors start an NGO in India?
Setup, Open and Start a Charitable Trust NGO in IndiaLearn all the details about Trust Registration and setting up a non-profit organization in India in the form of a public charitable trust. I have registered a Trust myself and all this information is based on my own experience. I am sharing this researched information with you in order make my contribution towards encouragement of non-profit and voluntary work in India.So, you want to start a public charitable trust to do social work. Well, it is indeed a noble thought. Go ahead and let me help you with information on how to register a trust in India. Lately, I have done some research about Trust Registration process and how to register Non-Government Organizations (NGO) in India. Today, I thought that I should summarily present my findings in this article so that others on the same quest can be benefited. In India, Non Profit Organizations (NPOs) are often called the Non Government Organizations (NGOs). An NGO could be registered in one of the following ways:TrustSociety (See how to register a society)Section 25 CompanySEE ALSO: Difference between trust and societyTrust Registration: How to Register a Trust NGOA 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. Privates 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. However, a few of the states have enacted Public Charitable Trusts Act (Like Bombay Public Trusts Act, 1950)Social work is important for a better society.Trusts are registered using a document called TRUST DEED. This document contains all the information about the Trust and is printed/written/typed on plain A4 size papers. Along with these papers you would need to attach a Rs. 100 Non-Judicial stamp paper (which you can get from a notary). All the Trustees and witnesses will have to give thumb impressions and signatures on these papers. All in all, you will need help of a notary to prepare the papers.You may also need a No-Objection Certificate (NOC) from the owner of the property where the registered office of the trust is to be situated. If you’re the owner of the property, then you don’t need to worry about NOCFollowing elements must be mentioned in the Trust Deed document:Name and address of the Settler (Settler is the person who is setting up trust)Name(s) and address(es) of the other trusteesName of the trustMinimum and maximum number of trustees your trust can haveAddress of the registered office of the trustObjectives of the trustRules and Regulations of the trustFor 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)All the trusts are allowed to work on all India levelTrusts are irrevocable –unless it is mentioned in the trust deed. This means that the trust cannot be wound upTrustees 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.SEETrustees cannot draw any remuneration from the trust fund. However, they may take reasonable compensation for the professional services they provide to the Trust.There no difference between a trust and a foundation.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.At the time of registration, only the Settlor and two witnesses are required to be present in front of the Sub-registrar under whose jurisdiction the registered office address comes. Sub-registrar will check IDs of these people. After that the Trust Deed will go to the counter where data entry takes place. In the end, Settlor and two witnesses will be photographed. You will need to pay a fee of Rs. 1100 for this process. Of this amount, Rs. 100 will be the registration fee and Rs. 1000 will be the charges of keeping a copy of the Trust Deed with the sub-registrar.After about one week of submitting the papers, you can go back to the registrar’s office to receive a certified copy of the Trust Deed.Trust Registration: Other Important PointsTrust income is exempted from income tax. Bu to avail this facility, after registration, you need to acquire a certificate from the Income Tax Department. This certificate is called u/s 12ADonations to the public charitable trusts are also exempted from tax (i.e. the donor will not have to pay tax on the amount he donates to the trust). For this, you need to acquire 80G certificate from Income Tax Department.Usually lawyers and practicing CAs can help you in registration of trust –but I guess a lawyer is better person if you need help in formulating your Trust Deed. CAs don’t know the nitty-gritty of legal stuff.If you can write your own trust deed –and sure that you have done a good job –then all you need is the help of a notary who will take your Trust Deed and prepare it for presentation before the Registrar.After registration of the Trust, for acquiring 12A and 80G certificates, you may need to take services of a practicing CA. They charge hefty fee for these services.
How does one register an NGO in India? What is the procedure and How much will it cost?
In India non profit / public charitable organisations can be registered asTrustSocietySection-25 Company Additional Licensing/ RegistrationTrustsA public charitable trust is usually floated when there is property involved, especially in terms of land and building.Legislation : Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.Main Instrument : The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.Trustees : A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees.Application for Registration :The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.After providing details (in the form) regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of Rs.2/- to the form and pay a very nominal registration fee which may range from Rs.3/- to Rs.25/-, depending on the value of the trust property.The application form should be signed by the applicant before the regional officer or superintendent of the regional office of the charity commissioner or a notary. The application form should be submitted, together with a copy of the trust deed.Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter.SocietyAccording to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: ‘charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.’Legislation : Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally, under the Bombay Public Trusts Act.Main Instrument : The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.Trustees : A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committeeApplication for Registration :Registration can be done either at the state level (i.e., in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies)The procedure varies from state to state. However generally the application should be submitted together with:memorandum of association and rules and regulations;consent letters of all the members of the managing committee;authority letter duly signed by all the members of the managing committee; an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp;a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society.All the aforesaid documents which are required for the application for registration should be submitted in duplicate, together with the required registration fee. Unlike the trust deed, the memorandum of association and rules and regulations need not be executed on stamp paper.Section-25 CompanyAccording to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established ‘for promoting commerce, art, science, religion, charity or any other useful object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.Legislation : Section-25 companies are registered under section-25 of the Indian Companies Act. 1956.Main Instrument : For a section-25 company, the main instrument is a Memorandum and articles of association (no stamp paper required)Trustees : A section-25 Company needs a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of a Board of directors or managing committee.Application for Registration :An application has to be made for availability of name to the registrar of companies, which must be made in the prescribed form no. 1A, together with a fee of Rs.500/-. It is advisable to suggest a choice of three other names by which the company will be called, in case the first name which is proposed is not found acceptable by the registrar.Once the availability of name is confirmed, an application should be made in writing to the regional director of the company law board. The application should be accompanied by the following documents:Three printed or typewritten 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 a chartered accountant that the memorandum and articles of association have been drawn up in conformity with the provisions of the Act and that all the requirements of the Act and the rules made thereunder have been duly complied with, in respect of registration or matters incidental or supplementary thereto.Three copies of a list of the names, addresses and occupations of the promoters (and where a firm is a promoter, of each partner in the firm), as well as of the members of the proposed board of directors, together with the names of companies, associations and other institutions in which such promoters, partners and members of the proposed board of directors are directors or hold responsible positions, if any, with description of the positions so held.A statement showing in detail the assets (with the estimated values thereof) and the liabilities of the association, as on the date of the 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 the income and the objects of the expenditure.A statement giving a brief description of the work, if any, already done by the association and of the work proposed to be done by it after registration, in pursuance of section-25.A statement specifying briefly the grounds on which the application is made.A declaration by each of the persons making the application that he/she is of sound mind, not an undischarged insolvent, not convicted by a court for any offence and does not stand disqualified under section 203 of the Companies Act 1956, for appointment as a director.The applicants must also furnish to the registrar of companies (of the state in which the registered office of the proposed company is to be, or is situate) a copy of the application and each of the other documents that had been filed before the regional director of the company law board.The applicants should also, within a week from the date of making the application to the regional director of the company law board, publish a notice in the prescribed manner at least once in a newspaper in a principal language of the district in which the registered office of the proposed company is to be situated or is situated and circulating in that district, and at least once in an English newspaper circulating in that district.The regional director may, after considering the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, as he may, in his discretion, decide, determine whether the licence should or should not be granted.The regional director may also direct the company to insert in its memorandum, or in its articles, or in both, such conditions of the licence as may be specified by him in this behalf.