Trust /NGO

Types of NGO Registration & NGO Registration Act

•         Society Registration – Societies Registration Act, 1860
•         Trust Registration – Indian Trusts Act, 1882
•         Section 8 company Registration – Section 8 company Registration

Trust Registration:

The registration for trust can be done via the Society Registration Act, 1882. These are public charitable trusts and are usually formed when the land or property is involved. Indeed, usually, the usage of trust is for the relief of poverty, education, medical aid, etc.

Society Registration:

Another way in which you can register NGO is in the form of society. To form a society, the individual comes together for promoting scientific purpose, charitable purpose and various other objectives, as mentioned in Section 30 of the Society registration Act 1860.

Section 8 Company Registration:

The Companies Act defines a Section 8 company as one whose objective is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members.

Power of the Trustees

As the name suggests, this specific clause talks about the responsibilities of the trustees.

Generally, such clauses confer the following powers to the trustees.

• Appointing employee(s)
• Alienating the trust properties
• Opening the bank account in the Trust’s name
• Suing defaulters in case of legal dispute on behalf of the Trust
• Accepting any gift, donation via legitimate individuals or sources
• Investing additional funding in securities

Registration Process of NGO

Step 1: Select an Apt Name for the Trust

The first and foremost step in the process of Trust registration is the name selection for the proposed Trust. Be mindful while serving such a purpose and take the following points into account to avoid any hassles:

• The name should fit the provisions of the Emblems and Names Act, 1950
• There should be no violation whatsoever when it comes to Trademark Act.
• The name should stay to the originality.

Step 2: Drafting of Trust Deed

• Drafting of Trust Deed is an important undertaking because it is the only thing that makes the Trust legally enforceable.

Following steps are to be followed to complete the process of Trust Registration:

Selecting a Name

The first step towards Trust Registration is selecting a unique name for your Trust. The name selected should not violate or infringe on someone else’s name or trademark.

Select Settlers and Trustees of the Trust

There should be atleast 2 trustees to create a Trust. However, there is no such bar on the maximum number of trustees required for trust. The Settler cannot be the trustee and should be residing in India.

Drafting Deed

The next step is to draft a ‘Trust Deed’. The ‘Trust Deed’ has to be executed on appropriate non-judicial stamp paper, where the rate of stamp duty differs from state to state. The Settler is required to put his signature on every page of the photocopy of the Trust Deed. Moreover, it is compulsory for the settlers as well as the two other witnesses to be physically present along with their identity proof at the time of registration. A Memorandum of Association should be drafted as it provides for the relationship between the trustor and trustee.

The next step is to obtain an appointment with the sub-registrar office having jurisdiction based on the registered office of the Trust.

Trust Registration

Once you have drafted the ‘Trust Deed’ the next step is to present the deed before the registrar of the trusts having jurisdiction. After presenting the deed before the registrar, the further Trust Registration process is undertaken by the office of the sub-registrar.

Obtain the Registration certificate

Once you have submitted the Trust Deed with the registrar, the registrar keeps the photocopy and returns the original registered copy of the Trust Deed.

After completing all the formalities involved in the trust Registration process, the registration certificate is issued within a minimum of seven working days.

Apply for PAN, TAN, and Bank Account

The final step in Trust Registration is to apply for the allotment of PAN number and TAN. Further, apply for the Bank Account in which all donations shall be deposited.

Required Documents for Trust/NGO Registration

• The most important document required for Trust registration is ‘Trust Deed.’ It gives the main objectives for which the Trust is set up. A Trust Deed is legal evidence of the existence of your Trust and contains the rules and regulations of the Trust. The Deed is signed in the presence of two witnesses. All the rules and regulations related to the management of the Trust are mentioned in the Trust Deed.
• Identity proof such as Voter ID, Driving License, Aadhaar Card, Passport, etc.
• Passport size photographs of all the parties of the Trust Deed.
• Aadhaar Card of each party of the Trust.
• PAN Card of each party of the Trust.

·         Proof of the registered office address, such as an electricity or water bill.