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Trust Registrstion

A Trust Registration can be created for the benefit of society at large or for a defined category of person. The trust is created by way of a trust deed which clearly lays down the name of the trustee, the author of trust, its beneficiary and the property on which trust is created. The trust deed is required to be mandatory registered.

Trust Registrstion
Trust Registrstion

Non- Governmental Organisations come under not-for-profit organisations and form a significant part of these kinds of organisations. NGOs are known for devoting or giving their funds for public welfare. It is significant to know that Trusts, Societies and Sec. 8 Companies are the three common forms of not-for-profit organisations. An individual is free to choose among these three as per his/her areas of interest. When it comes to NGOs as trusts, they are noticeably the oldest form of charitable organisations. The trusts can be private or public. Private Trusts involve a very small group or set of known individuals and are established with the purpose to benefit the family members. These trusts are governed and directed by Indian Trusts Act, 1882. The best part about the trusts is that they are very easy to form and run. In a trust, the donors donate the money in accordance with the objectives mentioned in the trust deed of the company.

NGO as Trust: Features or Characteristics

  • Indian Trusts Act, 1882 administers the private trusts whereas public trusts are directed by the common law except in Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.
  • There is no upper limit for the trustees but minimum two trustees are always required for the purpose of registration.
  • In order to form a public trust, trust deed is the main document that is required.
  • Execution of trust deed in the trusts is done with a non-judicial stamp paper of prescribed value.

Application for Trust Registration: Points to Remember

A. Application for registration is to be submitted to the official having jurisdiction over the region in which an individual is looking to register the trust.

B. After filling the form and providing all the details in the form, applicant needs to affix a court fee to the form and pay a registration fee.

C. Application form needs to be signed by the applicant before the registrar, sub-registrar, deputy registrar, regional officer or any authorised registrar.

D The form has to be submitted with a copy of the trust deed.

E. Affidavit and consent letter are also required to be submitted while submitting application for registration.

Trust Acts and Trust Deed

It is to be noted that different states in India follow different Trusts Acts in force. However, in the absence of a Trusts Act in any state or territory, general principles of the Indian Trusts Act 1882 are followed or applied . In public charitable trusts, the main instrument is the trust deed and it is important that aims and objectives of the trust should be clearly specified in the trust deed. Trust deed refers to the formal document which defines or outlines the terms of a trust agreement. The trust deed should tell about the procedure to be followed for the management of the trust along with the procedure of appointing or removing the members. Both the settlor and trustee should sign the trust deed in the existence of two witnesses.

Private Trusts

Indian Trusts Act of 1882 governs and administers the private trusts. The main aim of private trusts is to handle and manage the assigned trust properties for private or religious purposes. However, privileges and tax benefits are not available to the private trusts alike public trusts. Indian Trust Act, 1882 is applicable everywhere in India except for Andaman and Nicobar Islands and the State of Jammu and Kashmir. Also, there are some other areas as well where Indian Trust Act, 1882 is not applicable. Below mentioned are the areas.

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