Imam associates – Best Chartered Accountant in Hyderabad. Call Us : +91 9246536701 chartered accountant hyderabad, Company Registration, Accounting, Auditing, Taxation, Payroll Processing, GST Registration, GST Returns, Income Returns, Company Law Matters Public Charitable Trust Registration Process - NGOs India

​Public Charitable Trust Registration Process - NGOs India

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  • Public Charitable Trust Registration Process - NGOs India
  • The Indian Trust Act describes the formation of a trust as A trust is generated when any words or acts are indicated with reasonable certainty by the author of the trust:"
  • (a) the purpose on his part to build trust in this way,
  • (b) the trust's intent,
  • (c) the receiver, and
  • (d) the trust-property and unless the trust is declared to be the trustee by will or the trust's author is himself) the trust-property is passed to the trustee.' It is important to register a Public Charitable Trust with the office of the Charity Commissioner who has authority over the trust. You need to follow the steps listed below to register your trust:
  • Phase 1: Select a suitable name for the trust. This is the basic phase in your trust registration process. While choosing a name, be careful not to imply some kind of patronage by the government of India or any government of the state. As per the provisions of the Emblems and Names Act, 1950, it should not be within the limited list of names. There is however, no limitation on the use of names that are already registered in the Registrar's Office as a Trust. In the event that the registrar at the registrar's office refuses to register your trust under the name of the trust, despite not breaching any of the above laws, you can always lodge a complaint with the higher authorities and take appropriate action.
  • Step 2: The Settler/ Author and Trustees of the intended Trust are decided. There is no specifically established law for the number of Settlers / Writers. It is subject to the judgment of the Deputy Registrar of the Office of the Registrar. In most cases, however there is traditionally one settler or author. There is a minimum of two trustees required and there is no limit to the maximum number. Generally, the Settler/ Author are not Trustees. It relies on the selection, willingness and understanding of other trustees. To become a Trustee, there is no educational qualification required. Even a person who is illiterate may become a trustee. The minimum age for being a Trustee is 18 years for women and 19 years for men. However the sum of both minimum ages, i.e. 19.5 years, is often considered in general. A citizen of the Republic of India must be a trustee. For more than six months, immigrants, OCI card holders and NRIs residing abroad may not become members of a trust.
  • Stage 3: Draft the Trust's Memorandum of Association and Rules & Regulations. This is known as the Trust Deed and is highly significant as the legal proof of the nature of your Trust. The Trust Deed involves different clauses. They are:
  • Clause of Name
  • Clause of Settler and Trustee
  • Clause for Registered Office
  • Beneficiaries and Object Clause
  • Member Clause of General Body
  • Under the memorandum of association, a table containing the names, address and occupation of all members along with their signatures should be drawn up.
  • The following clauses are included in the Rules and Regulations section:
  • Clause for Membership
  • Clause for Subscription
  • Clause for Meeting
  • Clause of the Committee/ Governing Body
  • —The auditor
  • Legal processes, such as the appointment, dismissal or substitution, rights, responsibilities and powers of a trustee, etc.
  • Property that is passed for the benefit of the beneficiaries to the trustee(s) under the trust
  • Note: According to section 21 of the Indian Registration Act, 1908, for the purposes of registration, a deed of trust relating to immovable property must include a description of the property which is sufficient to define it.
  • The plan to divest the property of the trust from the trustee (s)
  • Note: The purpose must be conveyed with consistency, simplicity of language and certainty.
  • The Trust's Bylaws
  • Mention each and every law that applies to the wise Confidence Stage. This includes parts of the relevant Income Tax Act, the Indian Trust Act and other laws applicable to the management and execution of the Trust's operations. In order to open and operate a bank account, all the procedures and conditions that should be followed are clearly stated. The Trust deed contains these bylaws. Proper protocols need to be developed with respect to adjustments, removal or addition of trustees. The trust deed is incomplete and worthless without the implementation of bylaws. This is why it is recommended that experts who are skilled in preparing Trust deeds be hired. In the future, you may face problems such as showing the legibility of your trust without a proper trust deed.
  • Step 4: Prepare all the documents you need at the time of submission. There is a Deed of Trust that is necessary. Trusts are irrevocable unless the trust deed addresses them. This means that it is not possible to wind up the trust.
  • A. The elements of the deed of trust that should be present in it are:
  • Name and address of the Trust's Settler/ Author.
  • The other trustees' names and emails.
  • The trust's name.
  • Minimum and maximum trustee amounts. The minimum number is two, while the maximum is not limited. But the maximum number your confidence can have must be calculated. Together all the trustees control the trust jointly and are called the Board of Trustees.
  • The location of the trust's registered office.
  • The intent behind the trust's creation.
  • The trust's priorities.
  • The Trust Laws and Regulations.
  • Specifics of the planned bank account: for which bank and branch you open a bank account.
  • The tenure of the trustees in the deed must be specified. The role of the democratic process in the selection of trustees is not required.
  • The Board of Trustees will also have different trustee appointments, such as the Chairperson and the Managing Trustee.
  • Specify these roles and the obligations in the Trust deed for each of these.
  • While trustees are not entitled to receive any remuneration from the Trust Fund, they are entitled to receive compensation for the professional services they give to the Trust. Determine this in the Deed of Trust.
  • Date of the Trust Deed execution.
  • Specifics of the Trust Fund thus formed by the Settler and of the immovable movable assets included in the Trust Fund. Details on the sources and activities from which income is received and deposited in the Trust Fund is also included.
  • The manner and plan in which the benefit is distributed among the beneficiaries or used for their welfare in the implementation of programs/projects.
  • Rights, obligations and limitations of the Trustees.
  • The number of meetings to be held each year and the requirements for the number of meetings to be attended by the trustees are obligatory.
  • Procedures for any provision in the Trust Deed to vary, alter or adjust.
  • The terms by which a Trustee ceases to exist.
  • B. The Trust Deed is prepared on stamp paper, the value of which should be a certain proportion of the total value of the assets of the Trust. For example, in Delhi, this percentage varies from state to state. This value is 8 percent.
  • Remember: the agreement of all participants, whether verbal or written, is necessary. For various jurisdictions, rules regarding the physical presence of trustees are different. The physical presence of settlers, however is mandatory anywhere in India. In certain nations, their original photo IDs and self-attested photocopying are appropriate instead of the physical presence of the Trustees. Only the Settler and two witnesses are necessary to be present before the Sub-registrar at the time of registration, within whose jurisdiction the address of the registered office is located. The sub-registrar will verify these individuals' IDs. The Trust Deed will go to the counter where data entry takes place after that. In the end, they will photograph Settler and two witnesses. For this operation, you will need to pay a fee of Rs. 1100. Of this number, the registration fee will be Rs. 100 and the fee will be Rs. 1000 for holding a copy of the Trust Deed with the sub-registrar.
  • You will go back to the registrar's office to get a certified copy of the Trust Deed after around one week of sending the documents.
  • C. There are some conditions for registering the trust deed with the local registrar under the Indian Trusts Act. They are:
  • Deed of Trust on stamp paper of the appropriate value (as stated above)
  • Photograph of two passport sizes & self-attested copy of the settler's proof of identity
  • Photograph of two passport sizes & self-attested copy of each trustee's proof of identity
  • Note: since one would be pasted on the Trust deed, two images are required while the other is pasted on the registry information contained in the documents. The Aadhar card is preferred as proof of identity, but it is not necessary. Although the decision of the Supreme Court clearly stated that the Aadhar card must not be made compulsory, some registrars do not comply with it. If the documents are not issued with the Aadhar card, they could pose an obstacle. Voter ID, Passport, any other such photo ID card with the address indicated on it is valid until further notice. The Driving License is permissible in some places as evidence of identification, although some do not consider it. For example, in the Haryana Aadhar card, all these requirements vary from state to state, and one of the two witnesses must be a registered lawyer. In all of India, two witnesses are required. The trustees and the colonist are known by these witnesses. One photograph of the passport size (varies from state to state. Some require photos, some do not) & a copy of each of the two witnesses' proof of identity is required.
  • The settler's signature on all the pages of the Trust Deed.
  • Some states, such as Rajasthan, have made Pan Card mandatory for Madhya Pradesh. Although in others, if the amount of Trust property/a portion of it exceeds Rs 20,000, Pan Card is mandatory.
  • Evidence of the Trust's registered office address must be followed by the deed of the Trust. This can be the power bill, water bill, certificate of registration. You will have to send a letter of non-objection signed by the landowner with proof of his identity.
  • 1. The Trust is usually registered at the office of the Registrar of the State/area under which jurisdiction the official address of the Trust comes from. Please notice, however that the Trust's office address is not counted among the properties of the Trust. The office address may be from any location in India, although some places have few restrictions. In the case of Delhi, for example, registered office premises must be located in legally authorized/registered places of residence or trade. The office address should not be used for industrial buildings, farm houses and agricultural land. The address of the office must be registered with the local Deputy Registrar. It is not possible to use unauthorized emails. In the Indian Trust Act or the Registration Act, there are no specific rules about the office address. The criteria about this are left to the sub-decision registrar's and to the prevailing standards in the specific state. You will certainly contest this legally in court if you are given an incredibly difficult time by the sub-registrar. As the office address of the Trust, settlers or trustees may add more than one address. In the event that they wish to open another branch of their Trust, the address is added as an additional administrative office. This can be seen when opening a bank account or in the future when opening further branches.
  • You must refer to the property registered in the name of your Trust and attach its evidence to the documentation which you must send at the time of registration. The value of the property of the Trust must be alluded to in the Trust Deed. Any movable or immovable asset can be this property. The ground, building or plot falls under immovable assets while movables consist of the sum of cash. There is no maximum or minimum ceiling for movable properties. In the Trust deed, it is not mandatory that you have to include immovable property. If there is a property in your Confidence, mention it with its value and if not, do not fret. Registering a trust that does not have its own property is okay. There are some conditions for registering the Trust Deed with the Local Registrar under the Indian Trusts Act. They are:
  • Trust Deed on stamp paper of necessary value (as mentioned above) Two photographs of the passport size & self-attested copy of the settler's proof of identity
  • Photograph of two passport sizes & self-attested copy of each trustee's proof of identity
  • Note: since one would be pasted on the Trust deed, two images are required while the other is pasted on the registry information contained in the documents. The Aadhar card is preferred as proof of identity, but it is not necessary. Although the decision of the Supreme Court clearly stated that the Aadhar card must not be made compulsory, some registrars do not comply with it. If the documents are not issued with the Aadhar card, they could pose an obstacle. Voter ID, Passport, any other such photo ID card with the address indicated on it is valid until further notice. The Driving License is permissible in some places as evidence of identification, although some do not consider it. For example, in the Haryana Aadhar card, all these requirements vary from state to state, and one of the two witnesses must be a registered lawyer. In all of India, two witnesses are required. The trustees and the colonist are known by these witnesses. One photograph of the passport size (varies from state to state. Some require photos, some do not) & a copy of each of the two witnesses' proof of identity is required.
  • D. According to the Revenue Tax rules in some jurisdictions, the government registration fee applicable to the registration of the Trust is valued. It is measured exclusively at the time of registration; it can therefore not be decided in advance. At the time of the submission of the papers, there is a minimum amount of the relevant fee to be paid, by means of a request draft, an online request draft or a stamp paper of that specific value. After the maximum amount has been determined, the remainder of the relevant fee may be charged later to the registrar's office or to the designated associate revenue agency. Note, the charge varies between states.
  • E. The Trust Act should include the Trust's priorities and objectives relating to social care, child welfare, human development, protection of the environment and old age homes, etc. If you have a clear purpose behind the creation of your trust, along with other general social welfare goals, you may include that particular aim as the primary goal of the trust. Most targets are linked to each other. Typically, consultants have specific targets with the goals required by government bodies/ministries. From the ones you have listed in the Trust deed, you can also work on one objective.
  • F. The Trust Deed states the working area or area of activity. There is normally a national status of a trust registered anywhere in India. In this case, however, due to the absence of clearly defined rules, bureaucratic confusions have arisen and various registrars have their own criteria in this regard. An entity registered as Delhi is often considered a national entity. It is left up to the will of the creator as to where they want their Trust to register. There is no problem with obtaining funds or projects from any state or central ministry's government department concerning this.
  • Step 5: Apply the Trust Deed to the local registrar, along with correctly attested photocopies. The settler must sign a photocopy of the trust deed on each side. The settler and two witnesses must be physically present at the time of registration, along with their identification evidence (original as well as self attested photo copy). There is a controversy, however, about the existence of trustees. Some states require the Trustees to be physically present, although their written consent along with their identity proof (original as well as self-attested picture copy) is appropriate for some states.
  • Move 6: The Registrar will keep the photocopy and return the Trust Deed's original registered copy.
  • Step 7: It takes a minimum of 7 working days to obtain a certificate of registration after submitting all the necessary documentation and completing all the formalities. While it is not specified in any of the laws, by sending an official letter to that location for verification, some registrars may want to check the registered office address.
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